Loan payment calculator
Enter the amount, the annual interest rate, the term and how often you pay. You get the payment, the total interest and, if you add an extra payment, how much sooner you are done.
Free · no signup Runs in your browser
How do I calculate a loan payment?
Divide the annual rate by the number of payments a year and use the loan payment formula. $10,000 at 10.75% over 5 years paid monthly is $216.18 a month and $2,970.77 of interest in total. That is the same figure as the Financial Consumer Agency of Canada's sample personal loan agreement.
Why we built this calculator
Most loan calculators assume monthly payments and stop there. Canadian lenders also offer weekly, biweekly and semi-monthly schedules, and a loan with a longer term has a lower payment but a much higher total cost. This calculator shows all of that, and what an extra payment does to the payoff time.
For a mortgage use the mortgage payment calculator, which uses Canadian compounding. For savings, the GIC calculator, and for equipment with a balloon payment the equipment loan calculator.
It runs in your browser. Nothing you enter is sent anywhere, and there is no sign-up.
How it works
The payment comes from the standard loan payment formula. The rate per payment is the annual rate divided by the number of payments in a year, the number of payments is the years times payments per year, and the payment is the amount times the rate per payment divided by 1 − (1 + rate per payment)^−n (just the amount divided by n when the rate is 0%). Total interest is the payment times n, less the amount. It reproduces the Financial Consumer Agency of Canada's sample fixed-rate personal loan agreement: $10,000 at 10.75% over five years with monthly payments of $216.18 and $2,970.77 of interest. A longer term lowers the payment but raises the cost: on a $2,000 loan at 19.99%, 12 months costs about $2,223.11 in all and 60 months about $3,178.60. An extra payment each time shortens the term and cuts the interest.
How to use it
- Enter the loan amount, the annual interest rate and the term in years.
- Choose how often you pay: monthly, twice a month, every two weeks or weekly.
- Optionally enter an extra amount to pay each time.
- Read the payment, the total interest and the total cost.
- Compare terms and extra payments to see the difference.
What the calculation assumes
What goes into the answer, and what does not.
| Aspect | What happens |
|---|---|
| Interest | Worked out at the rate per payment, on the balance left |
| Fees and insurance | Not included |
| Rate | Fixed for the whole term |
| Compounding | Matched to the payment frequency, as in the FCAC's example |
| Rounding | To the cent; a lender may round differently |
| Advice | General information, not financial advice: check the figures with your lender, bank or an adviser |
| Privacy | Everything is worked out in your browser; nothing you enter is uploaded or saved |
When to use it
- Comparing a short and a long loan term
- Seeing what a biweekly schedule changes
- Working out how much an extra payment saves
- Checking a lender's quoted payment
Problems you may run into
Most differences come from the inputs and from the meaning of the numbers.
| What you see | Likely cause | What to do |
|---|---|---|
| My lender's payment is a little different | A different compounding rule, fees or rounding | Use the lender's agreement; this is a close estimate |
| The interest looks high | A long term or a high rate | Try a shorter term or an extra payment each time |
| I have a variable rate | The tool assumes a fixed rate | Run it again when the rate changes |
| Payments every two weeks cost less interest | More payments a year pay the balance down sooner | That is expected; check how your lender applies them |
| The first payment is smaller or larger | Some loans have odd first periods | Check the agreement |
Mistakes it helps you avoid
- Choosing a longer term for the lower payment without looking at total interest.
- Comparing loans by payment rather than total cost.
- Forgetting that fees and insurance can add to the cost of borrowing.
- Not asking whether a loan can be prepaid without a penalty.
How the payment is worked out
The usual loan formula, with the rate and term in payment periods.
r = annual rate ÷ payments per yearn = years × payments per yearpayment = amount × r ÷ (1 − (1 + r) ^ −n) (amount ÷ n when the rate is 0%)total interest = payment × n − amount
This reproduces the Financial Consumer Agency of Canada's sample fixed-rate personal loan agreement: $10,000 at 10.75% over five years with monthly payments of $216.18. The FCAC also shows that a longer term lowers the payment and raises the cost: on a $2,000 loan at 19.99%, 12 months costs about $2,223.11 in all and 60 months about $3,178.60. Your lender may round payments or add fees, so the figures on your agreement govern.
Worked example: $10,000 at 10.75% over 5 years
You borrow $10,000 at 10.75% for 5 years and pay monthly.
- Monthly rate: 10.75% ÷ 120.8958%
- Number of payments: 5 × 1260
- Monthly payment$216.18
- Total paid: 60 × the payment$12,970.77
- Total interest$2,970.77
The payment is $216.18 a month, and the loan costs $2,970.77 in interest.
Paying every two weeks instead, the payment is $99.59 each time, and adding $50 to each monthly payment pays the loan off in 47 instead of 60 payments.
Terms on this page
- Amortization
- Paying a loan off in regular payments over a set term.
- Prepayment
- Paying more than the scheduled payment, or the whole loan, early.
Common questions
How is a loan payment calculated?
With the amortization formula: amount times the periodic rate, divided by one minus one plus the rate to the power of minus the number of payments.
Does a longer term cost more?
Yes. It lowers each payment but you pay interest for longer. The FCAC's $2,000 example at 19.99% costs about $2,220 over 12 months and $3,180 over 60.
Do extra payments help?
They reduce the balance sooner, so less interest accrues and the loan ends earlier. The calculator shows the saving.
Can I repay a loan early?
It depends on the agreement. The FCAC's sample fixed-rate agreement allows prepayment in full or in part without a penalty; check yours.
Does this include fees and insurance?
No. Add any fees or insurance premiums your lender charges.
Where these numbers come from
- Financial Consumer Agency of Canada — Personal loans How payments are set from principal, interest and term, with a worked example of term and cost.
- Financial Consumer Agency of Canada — Credit agreement for a fixed interest loan for a fixed amount The sample agreement: $10,000 at 10.75% over five years, $216.18 a month.
Last verified 2026-10-23 The method on this page is checked against the sources above at least once a year. Spotted something out of date? Tell us and we will fix it.
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