Loan payment calculator
Enter the amount, rate and term to see your fixed monthly payment and what the loan really costs over its life.
Personal loan rates in Canada typically range from about 7% for excellent credit to 30%+ for higher-risk borrowers. Interest is modelled monthly at APR ÷ 12, the standard for fixed instalment loans.
Debt consolidation calculator
Rolling high-interest balances into one lower-rate loan can cut your payment and your interest. Compare before and after.
The "as-is" interest assumes you keep paying roughly the same total each month across your existing debts. A longer consolidation term lowers the monthly payment but can raise total interest — aim for the shortest term you can afford.
How much can I borrow?
Start from a comfortable monthly payment and see the loan size it supports at a given rate and term.
This is a payment-based estimate only. Actual approval depends on your credit score, income and existing debts — a lender will also look at your total debt-service ratio.
How personal loans work in Canada
A personal loan gives you a lump sum you repay in fixed monthly instalments over a set term — usually one to seven years. Rates in Canada range widely, from around 7% for borrowers with excellent credit to 30% or more for higher-risk applicants. Unlike a credit card, the rate and payment are locked, so you always know exactly when the debt will be gone.
Secured vs. unsecured loans
An unsecured loan isn't tied to any asset, so the rate is based on your creditworthiness. A secured loan is backed by collateral — a vehicle, investments or home equity — which lowers the lender's risk and usually your rate, but the asset is on the line if you default.
APR vs. interest rate
The interest rate is the cost of borrowing the principal; the APR (annual percentage rate) folds in mandatory fees to show the true annual cost. Always compare loans on APR, not the headline rate, so origination or administration fees don't surprise you.
Using a personal loan to consolidate debt
Debt consolidation replaces several high-interest balances — credit cards at 20%+, store cards, lines of credit — with a single lower-rate loan and one predictable payment. The benefits:
- A lower blended rate, so more of each payment goes to principal;
- One due date instead of juggling several; and
- A fixed payoff date, unlike revolving credit that can linger for years.
The key discipline is not to run the old cards back up. Consolidation only works if the freed-up credit stays unused. Try the debt consolidation calculator above to see your potential savings.
What affects your loan rate?
- Credit score — the single biggest factor; a higher score unlocks materially lower rates.
- Loan term — longer terms lower the payment but cost more interest overall.
- Secured vs. unsecured — collateral typically reduces the rate.
- Income and existing debt — lenders assess your ability to repay via your debt-service ratios.
Loan vs. line of credit
A personal loan is a one-time lump sum with fixed payments — best for a defined expense or consolidating debt. A line of credit is revolving: you draw what you need, pay interest only on the balance, and reborrow as you repay — better for ongoing or uncertain costs, though the rate is usually variable.
Popular personal loan questions
Many lenders approve scores from the high 500s up, but the best rates go to scores above roughly 720. A lower score usually means a higher rate or the need for a co-signer or collateral.
Getting a pre-qualified quote is typically a soft check that doesn't affect your score. A formal application triggers a hard inquiry, which can dip it slightly for a few months.
Most Canadian personal loans allow penalty-free prepayment, letting you save interest by paying extra or clearing the balance early. Always confirm there's no prepayment charge before you sign.
It can be, if the new rate is meaningfully lower than what you're paying and you avoid running the old balances back up. Use the consolidation calculator above to confirm the savings are real for your situation.