Calculate monthly payments and total costs for personal loans, business loans, and other financing options. Compare different loan terms to find the best deal for your budget.
Understanding Loan Calculations
Key factors that affect your loan payments and total cost:
- Principal: The amount you borrow - affects payment size and total interest
- Interest Rate: Annual percentage rate - higher rates mean higher payments
- Term: Length of loan - longer terms mean lower payments but more total interest
- Fees: Origination fees, processing fees increase total cost of borrowing
Types of Loans in Canada
Personal Loans: 6-20% APR, unsecured, 1-7 year terms for debt consolidation, home improvements.
Business Loans: 5-25% APR, may require collateral, terms vary widely by business type.
Student Loans: Government loans ~5%, private loans 8-15%, flexible repayment options.
Loan Shopping Tips
Get the best loan terms for your situation:
- Check your credit score before applying - higher scores get better rates
- Compare APR (includes fees) rather than just interest rates
- Consider shorter terms to save on total interest costs
- Get quotes from banks, credit unions, and online lenders
- Read the fine print for prepayment penalties and other fees
- Don't borrow more than you need - extra funds cost extra interest