Loan Calculator Canada - Estimate Monthly Payments

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Total Interest

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How Loans Work in Canada

In Canada, consumer loans—personal loans, auto loans, and mortgages—typically use fixed or variable interest rates with regular monthly payments. Your payment depends on the principal (amount borrowed in CAD), the annual interest rate, and the term in months. Canadian lenders often quote rates as an annual percentage rate (APR) and apply interest monthly. LoanWise uses the standard amortization formula used by Canadian banks and credit unions.

Typical Interest Rates in Canada

Rates vary by product, credit profile, and market conditions. Personal loans in Canada often range from about 6% to 35% APR for qualified borrowers; auto loans may run 5%–12%; and mortgages typically fall between 4% and 8% for fixed-rate terms. Your actual rate depends on your credit score, income, and the lender. Use this calculator to see how different rates affect your monthly payment in CAD.

Frequently Asked Questions

What is a good interest rate in Canada?

It depends on the loan type and your credit. For personal loans, rates below 12% APR are generally considered good for borrowers with strong credit. Auto and mortgage rates are often lower. Compare offers from banks, credit unions, and online lenders.

How long are typical Canadian loans?

Personal loans in Canada often run 12–84 months; car loans 24–72 months; and mortgages 25–30 years (300–360 months). Shorter terms usually mean lower total interest but higher monthly payments.

Do Canadian banks calculate interest monthly?

Yes. Most Canadian consumer loans use monthly interest calculations applied to the outstanding balance. This calculator uses that approach, so the results align with what you'd expect from a typical Canadian lender.