Calculate your monthly payments, total interest cost, and compare loan options before you borrow.
A personal loan can be a smart financial tool — whether you're consolidating credit card debt, financing a major purchase, or covering an unexpected expense. But borrowing without knowing the true cost is a recipe for trouble. Use this calculator to see exactly what a personal loan will cost you.
Personal Loan Payment Calculator
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Personal Loan Rates in Canada (2026)
Personal loan interest rates in Canada vary widely based on your credit score, income, and lender type:
Banks (major): 6–12% for excellent credit (720+)
Credit unions: Often 5–10%, especially for members
Online lenders: 7–19% depending on credit profile
Bad credit lenders: 18–35%+
Payday loans (avoid): Effectively 300–600% APR
Rule of Thumb: If a personal loan rate is higher than your credit card rate (typically 19.99%), there's no point consolidating. Only consolidate when the new rate is meaningfully lower than what you're currently paying.
How to Get the Best Personal Loan Rate in Canada
Check your credit score first — know your starting point before applying
Shop multiple lenders — rates vary significantly; get at least 3 quotes
Try your bank or credit union first — existing relationships often get better rates
Avoid applying broadly — multiple hard inquiries in a short period hurt your credit
Consider a shorter term — 2-year loans have lower rates than 5-year loans
Personal Loan vs. Credit Card vs. Line of Credit
Not sure which borrowing option is right for you?
Personal loan: Best for a defined amount you'll repay on a fixed schedule. Predictable payments, often lower rates than credit cards.
Credit card: Best for short-term purchases you'll pay off within the month. Expensive for carrying a balance.
Line of credit: Best for ongoing or variable needs. You draw and repay as needed. Rates often similar to personal loans.
Home equity loan/HELOC: Best for homeowners needing larger amounts. Lower rates, but your home is collateral.
Using a Personal Loan for Debt Consolidation
One of the most common uses for a personal loan in Canada is debt consolidation — using the loan to pay off multiple higher-rate debts, leaving you with one monthly payment at a lower rate.
Example: $20,000 in credit card debt at 19.99% → personal loan at 9.99%: saves roughly $2,000/year in interest and pays off faster with the same payment.
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