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Loan Interest Calculator

This calculator isolates the cost of borrowing: how much interest a loan costs in total, and how that interest is spread across the term.

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By the LoanLoon editorial teamLast reviewed 18 September 2026Checked against primary sources

Result

Enter your figures above and submit to see the result.

Fixed rate for the whole term; no fees, insurance or taxes unless a field says otherwise. Results are estimates, not offers.

Interest in any given month is the outstanding balance multiplied by the monthly rate. The principal portion of a payment is whatever is left after interest. Repeating that month by month produces the amortisation schedule this calculator summarises.

The practical consequence is front-loading: on a long loan at a normal rate, a large share of total interest is paid in the first third of the term. That is why paying extra early saves disproportionately more than paying extra late, and why paying off a loan early is often worth a prepayment penalty — though you should always compare the penalty against the interest saved.

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Check your rate

LoanLoon is not a lender. We do not make credit decisions, set rates, or guarantee approval. The lowest rates are only available to the most qualified applicants.

The figure above is arithmetic, not an offer. A lender's real rate, payment and total cost depend on its own underwriting, on your credit profile and on your province. loanloon.ca is a matching and comparison service — not a lender, a broker of record, or a credit counsellor. We do not make loans, set rates or make credit decisions. The lowest rates are only available to the most qualified applicants.

Frequently asked questions

How is loan interest calculated in Canada?

Most consumer loans use simple interest calculated on the outstanding balance, compounded at a defined frequency. Compare the annual percentage rate rather than the nominal rate to account for compounding and fees.

Does paying extra reduce my interest?

Yes, if the extra amount goes to principal rather than to a future scheduled payment. Check whether your lender charges a prepayment penalty first.

Why is most of my early payment interest?

Because interest is charged on the balance. While the balance is high, the interest share of each fixed payment is high. As the balance falls, more of each payment goes to principal.

Is this calculator free to use?

Yes. Every calculator on loanloon.ca runs in your browser and is free. Nothing you type is sent to us or stored.

Does the result guarantee what a lender will offer me?

No. The output is an estimate based on the figures you enter. Actual rates, payments and approval are decided by the lender.

The lowest rates are only available to the most qualified applicants — what does that mean?

It means the best advertised pricing is reserved for borrowers with the strongest credit profiles, income and debt-service ratios. Most borrowers are offered something different.

Sources and further reading