Payday Loan Cost Calculator
This calculator shows what a payday-style advance costs: the fee, the total you repay, and the effective annual rate. The default $14 per $100 is the federal cap — change it to match any provincial rule or lender.
How this calculator works
A payday loan is a short-term advance repaid in a single payment, usually on your next payday. The fee is charged per $100 borrowed, so the cost scales with the amount and the term.
Formula: fee = amount × feePer100 ÷ 100, total repay = amount + fee, and the effective annual rate is (fee ÷ amount) × (365 ÷ days) × 100.
The federal rules are specific. The cost of borrowing is capped at $14 per $100 borrowed, the maximum payday loan is $1,500, the term cannot exceed 62 days, and a dishonoured-payment fee is capped at $20. Nine provinces run their own payday lending regime, and Quebec effectively bans payday loans, so the cap you can legally be charged depends on where you live.
The effective annual rate is the number that shows how expensive short-term credit really is. At $14 per $100 over 14 days, the fee is 14% of the amount, which annualises to about 365%. That does not mean you pay 365% in cash; it means the cost is very high relative to the time the money is borrowed.
Compare the fee against lower-cost options before you borrow: a credit-card cash advance, overdraft protection, a line of credit, a credit-union loan, or a payment arrangement with the biller. The Financial Consumer Agency of Canada publishes a comparison showing payday credit costing far more than the alternatives.
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Frequently Asked Questions
What is the maximum a payday lender can charge in Canada?
The federal cap is $14 per $100 borrowed. Some provinces set a lower cap, so check your provincial regulator.
Why is the effective annual rate so high?
The fee is charged over a very short term. Annualising a two-week fee of 14% produces a very large figure even though the cash cost is $42 on $300.
Is the fee refundable?
No. The fee is the cost of borrowing. If you repay on time you pay the amount plus the fee; a missed payment can add a dishonoured-payment fee of up to $20.
Are payday loans available everywhere in Canada?
Nine provinces have a payday lending regime, and Quebec effectively bans payday loans. Rules, caps, and licensing differ by province.
What is a cheaper alternative?
A line of credit, overdraft protection, a credit-card cash advance, a credit-union loan, or a payment arrangement are usually cheaper. Ask for a payment extension before taking a payday loan.
Last updated: September 16, 2026 · By the Instalment.ca Editorial Team
We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.
Instalment.ca is a loan matching and comparison service, not a lender.
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This is general information, not financial, legal, or tax advice.
Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.