Debt · 2026 rules

Personal loan

Personal loans compound monthly, so the arithmetic is simpler than a mortgage — but the fees and the term are where the real cost hides. Compare two offers side by side before you sign either.

  • Payment and total interest
  • Compare two offers
  • Consolidation check
Your numberslive
$
%
5 years
1 years3 years5 years7 years10 years
$
Paying it down faster
$
A competing offer
%
5 years
1 years3 years5 years7 years10 years
$

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Monthly payment
$531
$25,000 at 9.99% over 5 years
Total cost $31,863, of which $6,863 is interest.
Total interest
$6,863
Total repaid
$31,863
Principal, interest and fees
Payoff
5 yr 0 mo
As scheduled

Two offers, compared properly

Everything you would repay under each offer, including fees
Offer A — 9.99% over 5yr$31,863
$531 a month, $0 in fees
Offer B — 7.45% over 5yrbetter$30,521
$500 a month, $500 in fees

A longer term almost always shows a lower monthly payment and a higher total cost. Compare the total, then check the payment fits.

What you are actually paying for

Total repayment, split between principal, interest and fees
  • Principal$25,000
  • Interest$6,863

Balance over the term

Outstanding balance against interest paid to date
$0$5,445$10,890$16,335$21,780Y1Y2Y3Y4Y5YearBalanceInterest paid
  • Balance
  • Interest paid

Year by year

Year 1$2,315 interest · $20,942 left$4,058
Year 2$1,891 interest · $16,460 left$4,482
Year 3$1,422 interest · $11,510 left$4,951
Year 4$904 interest · $6,041 left$5,469
Year 5$332 interest · $0 left$6,041
Total interest$6,863
Consolidation only helps if the rate drops and the term does not stretchRolling three debts into one at a lower rate is a real saving. Rolling them into one at a lower payment but over eight years usually is not — run both through the comparison above.
How this is calculated

Payments are calculated with monthly compounding, which is how personal loans, car loans and lines of credit work in Canada. Mortgages are the exception — they compound semi-annually.

Fees are added to the total cost rather than financed, since most lenders deduct them from the advance. If yours is added to the principal, increase the amount borrowed instead.

Extra payments are applied monthly and go entirely to principal, which is how they shorten the term.

These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.

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