Personal Loan Calculator

Personal loans use standard principal-and-interest amortization: the periodic rate (annual rate divided by payments per year) is applied to a standard payment formula so that the loan is fully paid off in equal instalments by the end of the term. Unlike mortgages, personal loans in Canada do not use semi-annual compounding.

Lenders price personal loans based on your credit score, income, existing debt load, and whether the loan is secured or unsecured — unsecured loans generally carry higher rates since there's no collateral backing the loan. Shop multiple lenders since rates vary significantly by credit profile.

The payment frequency changes how many instalments you make per year (12, 26, or 52) and therefore how the periodic interest rate is derived — more frequent payments mean the balance is reduced sooner within each period, which slightly lowers total interest paid over the loan's life compared to monthly payments at the same annual rate.

Most Canadian personal loans allow early repayment, but check whether your lender charges a prepayment penalty — installment loans are less likely to carry one than fixed-rate mortgages, though some lenders still apply an interest-cost fee. Paying extra toward principal reduces the total interest shown by the calculator.

A personal loan disburses a fixed lump sum that you repay on a set amortization schedule with a fixed or variable rate, while a line of credit is revolving — you draw and repay as needed up to a limit, similar to a HELOC but usually unsecured and at a higher rate. A loan gives payment certainty; a line of credit gives flexibility.