Loans
How Much Does a Personal Loan Cost?
Worked examples showing how the rate and the term change your monthly payment and total interest, plus the fees to watch for.
How much does the rate matter?
A lot. On $10,000 over 5 years, moving from 8% to 25% more than triples the interest.
| Rate | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| Top8% | $202.76 | $2,166 | $12,166 |
| 15% | $237.90 | $4,274 | $14,274 |
| 25% | $293.51 | $7,611 | $17,611 |
| 35% | $354.90 | $11,294 | $21,294 |
These are arithmetic examples at fixed rates with monthly payments and no fees.
Put it into practicePersonal Loan CalculatorHow much does the term matter?
Stretching the same loan from 2 to 7 years cuts the payment by more than half but almost quadruples the interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| Top2 years | $470.73 | $1,298 |
| 3 years | $332.14 | $1,957 |
| 5 years | $222.44 | $3,347 |
| 7 years | $176.53 | $4,828 |
Example: $10,000 at 12%.
Which fees should I look for?
Origination or administration fees, NSF fees for missed payments, optional loan protection insurance and prepayment penalties.
Most banks and many online lenders let you repay early without a penalty. Some lenders build an origination fee into the APR; goPeer, for example, includes its origination fee in the APR it quotes.
Loan protection insurance is optional. If it’s added to the payment, ask for a quote without it so you can compare.
What is APR?
APR is the yearly cost of the loan including mandatory fees, expressed as a rate. It is the best single number for comparing offers.
By law, the APR on most consumer loans in Canada can’t exceed 35%.
Keep reading
LoansPersonal Loan Rates in CanadaTypical personal loan rates at banks, credit unions and online lenders, why your rate differs from the advertised one, and how to get a lower rate.- LoansPersonal Loan vs Line of CreditHow the two differ in rates, payments and flexibility, and which one suits a one-off cost or ongoing spending.
LoansHow Personal Loans Work in CanadaWhat a personal loan is, how lenders set your rate, what it costs and what you need to apply, explained step by step.
LoansHow to Spot a Loan ScamThe warning signs of fake lenders, what real lenders never ask for, and what to do if you have been targeted.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value