Loan Payment Calculator
This calculator estimates what a loan costs each month and what it costs in total by the end of the term. Enter the amount borrowed, the annual rate, the term and any fees added to the loan to see how each input moves both figures.
$318.63 / month
Assumes a fixed rate and equal monthly payments for the whole term, with no missed payments.
What the calculation actually does
Two numbers come out: an estimated payment for each period, and an estimated total paid over the term. Behind that, the calculator runs one standard amortization. It takes the amount borrowed, adds any fees you told it to roll in, and spreads that balance across every payment period in the term at the rate you entered. Each period, interest is charged on whatever balance is still outstanding, and the rest of the payment reduces that balance. Early payments are mostly interest. Later ones are mostly principal. Change the term and the same balance is spread differently, which is why a longer term lowers the payment and raises the total.
In words, the formula is: take the balance, multiply it by the rate for a single period, then divide by one minus the compounded value of that same rate across the full number of periods. That divisor is what converts a lump sum into a level payment. Skipping it would mean dividing the balance by the number of payments and ignoring interest altogether.
What each input means
- Amount borrowed — the principal, before fees. This is the figure that would appear on a loan agreement, not the amount that lands in your account after any deductions.
- Annual interest rate (%) — a nominal annual rate. It is not the same thing as the cost of borrowing, which folds fees and charges into a single figure. The Financial Consumer Agency of Canada's material on personal loans sets out the difference, and it is that difference that decides what a loan really costs.
- Term (years) — how long the payment schedule runs. It is not necessarily the life of the debt if you renew, refinance or pay it off early.
- Fees added to the loan — a charge rolled into the balance rather than paid up front. If it is added, you pay interest on it for the whole term, which is why the same fee costs more when added than when paid separately.
What the result assumes, and what it does not say
The output is arithmetic, not an offer. It assumes a fixed rate for the entire term, payments made on time and in full, no extra or lump-sum payments, no late charges, no optional insurance or add-on products, and no change to the schedule. Change any one of those and the real numbers move. It also assumes interest is applied once per period at a rate found by dividing the annual figure; for a Canadian fixed-rate mortgage that is not quite right, because those mortgages are compounded semi-annually by law, so a monthly equivalent needs a slightly different conversion. The total shown is what you would pay if nothing changed. It is not a quote, not a payment you have been approved for, and not a promise that any lender will offer the same terms. loanmoose.ca is not a lender and does not make credit decisions; it matches and compares, and any actual loan is made by a licensed lender on its own terms.
Where the rate and the fees come from
Nothing on this page sets a rate. Lenders price a loan on your credit history, income, existing debts, whether the loan is secured, the term, and the province or territory you live in, because lending is licensed provincially and the regulator and the rules differ by region, as the FCAC's list of provincial and territorial regulators shows. There is an outer legal limit: the criminal rate of interest is 35% per year under Criminal Code s. 347. Short-term payday-style credit sits in a separate regime, where a province operates a licensed payday lending regime, with a federal cap and lower provincial caps in some places. Two things follow. First, no calculator can tell you your rate before a lender assesses you. Second, when you have a real offer in front of you, compare its cost of borrowing — not only its headline rate — against what this page produced.
Frequently asked questions
Does the calculator include fees in the monthly payment?
Only in the way you entered them. If you put a figure in the fees field, the calculator adds that amount to the balance, so it attracts interest for the full term and raises both the payment and the total. If your fees are paid separately at the start, leave the field empty and add them to the total yourself. The page has no way to know which arrangement a lender will use, so it cannot decide that for you.
Why is the total more than the amount I borrowed?
Because interest is charged on the outstanding balance every period. Over a long term the balance stays large for longer, so more interest accumulates even at a modest rate. The gap between principal and total is the clearest single number on the page: it is the price of borrowing the money, before any fees you paid outside the loan or any optional products added along the way.
Is the interest rate in the calculator the rate I will be offered?
No. It is the rate you typed in, and it does not come from any lender. An actual rate depends on a lender's assessment of your credit history, income, existing debts, whether the loan is secured, and the term. Lending is licensed provincially, so the rules and the products available differ by province and territory. Use the field to test scenarios, not to predict an offer.
Can I use this calculator for a mortgage?
You can, but treat the result as approximate. Canadian fixed-rate mortgages are compounded semi-annually by law, so a simple monthly conversion will be slightly off. Mortgage qualification also runs through different arithmetic: federally regulated lenders generally work to a total debt service ratio ceiling of about 44%, and must qualify an uninsured mortgage at the greater of the contract rate plus two percentage points and 5.25% under OSFI Guideline B-20. Insured mortgages and provincially regulated lenders are not all subject to B-20.
What is the difference between the interest rate and the cost of borrowing?
The interest rate prices the money itself. The cost of borrowing folds fees and charges into a single figure, which is why two loans with the same rate can cost different amounts overall. The Financial Consumer Agency of Canada explains both on its personal loans pages. When you compare real offers, compare the cost of borrowing and check exactly which charges the lender has included in it.
What happens to the numbers if I pay extra or pay the loan off early?
The calculator does not model that, because extra payments change the balance and therefore the interest charged on every later period. Paying more than the scheduled amount usually shortens the term and reduces total interest, but the exact effect depends on your agreement, on whether the lender applies the extra amount to principal, and on whether any prepayment charge applies. Ask the lender how extra payments are handled before you rely on any estimate.
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