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Personal loan calculator

With the online personal loan calculator in Canada in 2022 you can calculate the repayment schedule for the loan, as well as the loan amount that you are planning to get according to the amount of monthly payments.

Your city
Bank
Royal Bank Of Canada Royal Bank Of Canada
Royal Bank Of Canada Royal Bank Of Canada
TD Bank TD Bank
Scotiabank Scotiabank
Calculation of a loan from any bank
Loan amount
i

Specify the desired loan amount

CAD
CAD
USD
1000 $
50000 $
Loan term
i

Specify the loan term for the calculation

months
days
1
120
Interest rate
i

Choose the interest rate on the loan

1 %
50 %
Fill out an application for a loan!
Fill out an application for a loan!
Take advantage of our loan selection system with a free credit rating check!

What is a personal loan?

A personal loan is a lump sum of money you borrow from a bank, an alternative lender, or other financial institution for home improvement, debt consolidation, or any unexpected expenses. You repay it in monthly installments according to your payment schedule.

You must pay back the principal and interest every payment period. In addition, there are fees, insurance, and services costs, which could be included in the loan cost or paid upfront.

The borrowing money is often funded to your bank account and is paid back through the regular transactions directly from it.

Most personal loans are unsecured, so you don't have to put up collateral such as your home, car, or other assets to borrow some cash. But sometimes, lenders require a cosigner or a guarantor.

Usually, personal loans have a fixed interest rate, which could be relatively high, up to 40% and more. However, they can be lower in a bank or a credit union.

The terms and amounts in Canada usually vary from $100 to over $50,000 for 6 — 60 months and typically depend on your creditworthiness (credit score and/or income).

Anyway, all loans are subject to a standard credit approval procedure. For example, to get a personal loan, you should qualify and go through the application process, where a credit check is often required.

Why do you need a personal loan calculator?

It's difficult to structure all loan options and products by yourself. You could be frustrated by different companies promoting their lending services, but using the personal loan calculator could be the answer.

Before getting the money upfront, look at the fine print: there could be hidden fees, penalties, rates that may change after the promo period, and so on.

Personal loan calculators are tools that can help borrowers to:

Borrowers can use a personal loan calculator for comparing lines of credit and personal loans. Line of credit provides ongoing access to cash with variable interest rates and frequencies. Personal loans offer money upfront with regular fixed repayments. To compare the line of credit and personal loan lending options, borrowers should carefully consider the total cost and APR.

It could be used for debt consolidation, as the calculator may help evaluate the consolidation of your credit card debts, car loans, and lines of credit based on their actual cost.

Reference! All calculators are tools used for illustrative and general information purposes only and are not intended to provide specific financial or any other advice.

How does a personal loan calculator work?

  1. Input the data in the online form:

Also, there could be several payment frequency options to choose from. Sometimes, you could enter your credit score (from poor to excellent).

  1. Press the «Calculate» button or scroll below to look at the results.

  2. Review monthly repayment, total interest, payoff date, loan's amortization table, and/or amortization graph.

Some calculators offer an opportunity to enter the amounts of insurance and fees. If you input these values, you will get the APR and the loan cost that could be higher than advertised.

There could be a function to calculate the amount of a personal loan you could afford. Fill in the monthly payments you can make, your interest rate, and your term in years. The answer will be your possible loan amount and the total interest you will pay.

For example, paying $250 monthly for five years with an APR of 7,5% will pay $2,523.67 total interest.

How to calculate payments on a personal loan

To determine your line of credit or loan's payment with a personal loan calculator, you will need to enter the values of the loan amount, interest rate, loan term, and payment options (monthly, semi-monthly, bi-weekly, weekly).

You will get the total monthly loan payment, total interest within the life of a loan, and a graph.

How to compare loans using a personal loan calculator

Personal loan calculators allow borrowers to consider all the components essential for comparing personal lending products.

You could evaluate APR and monthly repayment for each loan to find the most affordable lending solution or a lender whose options suit you.

With a calculator, you can analyze loans with different borrowing rates and charges and determine the actual loan total cost.

Also, you may use an online loan comparison calculator. Input the data: loan amount, interest rates, loan term, amortization fee, and the closing cost for each loan you want to compare. You will get the monthly repayments and APR, written and visualized by the diagram to help you decide.

What should be considered when comparing

It may be obvious to compute monthly payments and borrowing rates to compare loans. But ensure to input all the data to get an actual APR and true total loan cost.

There could be charges like administration and origination fees, NSF fees, prepayment penalties, and other costs. Again, look carefully at the agreement and all the documents the lender often provides on its website to compare the total cost.

However, if your credit score is less than perfect, you may be unable to get the best offer, like the lowest rates and most considerable borrowing cash amounts. So, be sure you can get the loan approved based on the conditions you fill in when comparing loans.

Difference between borrowing rate and annual percentage rate

The borrowing rate you could apply for generally depends on your credit score and income. Usually, it is fixed, so it does not change during the life of a loan.

Some lenders offer variable interest rates based on the Bank of Canada prime rate. It changes according to the economic situation and sometimes can save you money. But it's difficult to determine the variable rate in advance.

The APR includes fees, insurance, and other charges. However, insurance coverage is usually optional if you borrow from financial institutions like the RBC Royal Bank, governed by the conditions of the group's creditor policies for disability insurance and life insurance, issued by Canada Life Assurance Company.

When comparing loans, it's necessary to look at the real APR and the actual total cost of a loan, not only the interest rate, to understand whether the monthly repayments are affordable.

How to find a suitable lender using a loan calculator

Loan calculators allow you to compare the APR and the total loan cost of different lenders. There are charges that you are not considering. The origination fee could vary from 1% to 6%.

For example, you have two lenders who offer you a $10,000 loan for five years:

  1. Interest rate — 11%. Origination fee — 1%.

  2. Interest rate — 9%. Origination fee — 6%.

It may look like the second lender's conditions are more favorable. But let's look at the APR, which could be easily estimated with a loan calculator.

  1. APR — 11.43%

  2. APR — 11.52%

Now you can understand that the difference is not that significant. So you can consider other features and make a decision.

Find out information about all the penalties and charges in advance. You may be able to afford your monthly repayments, but the penalty could be a problem if you are late or miss your installments. It may end up as a mountain of debt.

Depending on your lender’s policies, and your Canadian province, the loan may be accompanied by taxes. Be sure you have calculated them in your loan total cost.

Choosing a bank or credit union to borrow from could be a better option if you have a good credit history because conditions are more favorable. Still, it may be challenging to qualify for a loan.

Private companies have more flexible terms and approval requirements, but total loan costs will be higher.

How do I calculate monthly payments on a personal loan?

Enter your loan amount, term, and interest rate with the fees, if there are any. Then, review the monthly payment, the total cost, and the loan amortization graph.

What is a reasonable interest rate on a personal loan?

The average personal loan interest rate in Canada is 6,39% (based on the information from the Bank of Canada).

It usually depends on your credit score: 740 and above secures an interest rate of less than 8%, 670 to 739 — about 14%, 580 to 669 — 18%, and more.

How does a personal loan calculator work?

Input the values of the loan amount, term, interest rate, and fees in an online form. Then, click the «Calculate» button and look at the results. You will have the monthly payment, APR, and total cost to analyze which loan option and lender suits your financial goals.