Borrow $15,000 at 9.99% over 48 months and the payment is $380.37 a month. Interest comes to $3,257.60, so you repay $18,257.60 in total. Put your own amount, rate and term in above to see what a loan would cost.
How a personal loan works
You borrow a fixed sum and pay it back in equal instalments over a set term. The rate may be fixed or variable, depending on your credit and income. A line of credit renews. A loan does not. Once it is repaid the money is gone, and getting more means applying for a new loan from scratch.
Reading the result
The monthly payment is what you owe each month, and total interest is the price of borrowing. Add any fee to get the full cost. In the example, interest equals 21.7% of the amount borrowed. Compare that share across offers. It is fairer than looking at payments alone.
Term length
Shorter terms cost less interest but push the payment up. On the same loan, a 24-month term means a much higher payment and far less interest. Choose a term you could keep up even if your income dipped, not merely a payment that looks small.
Origination fees
Some lenders deduct a fee from the loan, often between 1% and 6%. Borrow $15,000 with a 3% fee and $14,550 arrives, yet you repay the full $15,000. Enter the fee to see the cost. Total cost is what counts.
Secured or unsecured
An unsecured loan needs no collateral and carries a higher rate. A secured loan is backed by an asset such as a car, and the rate is often lower. Miss the payments and the asset can be lost, so read the contract closely before you sign, and ask the lender to explain every clause you do not follow.
Before you borrow
Check your credit report and score first. Ask about prepayment rules, so early repayment carries no penalty. Collect offers from banks, credit unions and online lenders, then line them up side by side on total cost. Remember that a consolidation loan only helps when you stop adding new debt.
Debt consolidation
One loan can replace several high-rate debts with a single payment. It saves money only if the new rate is below your current average and the cards stay unused. Set the loan’s total cost, fee included, against what each card would cost you. Use the result box.
Your credit score
A better score usually earns a lower rate. On-time bills, low card balances and few applications in a short span all help. Some lenders quote a rate without a hard inquiry. Shop inside a short window. The checks then count as one search.
Toronto and Ontario borrowers
Ontario caps the cost of borrowing on payday loans, but loans from banks and online lenders follow other rules. Get the annual percentage rate in writing, every time. A licensed lender shows every fee before you sign, and the provincial regulator lets you check a lender.
Where to go next
To compare with cards, open the credit card payoff calculator. A flexible alternative sits in the line of credit calculator, and the monthly budget calculator helps you plan the payments.
Frequently asked questions
How is a personal loan payment calculated?
From the amount, the rate and the number of months.
How much interest will I pay on $15,000?
At 9.99% over 48 months, about $3,257.60.
What is an origination fee?
A charge some lenders deduct from the loan when they issue it.
Is a shorter term better?
It costs less in interest but raises the monthly payment.
Can I repay a loan early?
Often yes. Ask about penalties first.
What is the difference between secured and unsecured?
A secured loan uses collateral and usually has a lower rate.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.