Personal Loan Calculator: Payments by Rate and Term
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A personal loan calculator answers two questions: how much will you pay each month, and how much will the loan cost in total? This guide gives you both without any software. Use the payment tables below for common amounts, rates and terms, or apply the formula to your own offer in a few minutes. All figures are our calculations, checked on October 18, 2026. To compare lenders once you know your budget, visit our loans hub.
The three numbers that set your payment
Every personal loan payment depends on three inputs:
- Amount borrowed: the principal, before any fee is added.
- Interest rate: the annual rate, or better, the annual percentage rate (APR), which also counts most fees.
- Term: the number of months to repay, usually 12 to 84.
A higher rate raises both the payment and the total cost. A longer term lowers the payment but raises the total cost, because you pay interest for more months.
Personal loan payment table: $10,000
The table below shows the monthly payment and the total interest on a $10,000 loan, for four rates and four terms. The 34.99% row sits just under the 35% legal maximum for most consumer loans in Canada.
| Rate | 24 months | 36 months | 48 months | 60 months |
|---|---|---|---|---|
| 8% | $452.27 / $855 | $313.36 / $1,281 | $244.13 / $1,718 | $202.76 / $2,166 |
| 12% | $470.73 / $1,298 | $332.14 / $1,957 | $263.34 / $2,640 | $222.44 / $3,347 |
| 20% | $508.96 / $2,215 | $371.64 / $3,379 | $304.30 / $4,607 | $264.94 / $5,896 |
| 34.99% | $585.13 / $4,043 | $452.30 / $6,283 | $389.65 / $8,703 | $354.84 / $11,290 |
How to calculate your monthly payment
Lenders use the standard amortization formula for a fixed-rate loan with equal payments:
Payment = P × r ÷ (1 − (1 + r)−n)
- P: the amount borrowed.
- r: the monthly rate, which is the annual rate divided by 12.
- n: the number of monthly payments.
Worked example
You borrow $10,000 at 12% for 3 years.
- The monthly rate is 12% ÷ 12 = 1%, so r = 0.01.
- The number of payments is 3 × 12 = 36.
- The payment is 10,000 × 0.01 ÷ (1 − 1.01−36) = $332.14 a month.
- Total paid: $332.14 × 36 = $11,957.15, so the interest costs $1,957.15.
Stretch the same loan to 5 years and the payment falls to $222.44, but the interest climbs to $3,346.67. That is $1,389.52 more for a lower monthly payment.
Where each payment goes
Each payment first covers the interest for the month, then reduces the principal. Early payments are mostly interest; later ones are mostly principal. Here are the first three payments of the $10,000 loan at 12% over 36 months:
- Month 1: $100.00 of interest, $232.14 of principal, balance $9,767.86.
- Month 2: $97.68 of interest, $234.46 of principal, balance $9,533.39.
- Month 3: $95.33 of interest, $236.81 of principal, balance $9,296.58.
This is why an early lump-sum payment saves so much: it cuts the principal that future interest is calculated on. Check that your loan is open, or that its prepayment fee is small, before you count on it.
Payments for $5,000 and $20,000
Payments scale in proportion to the amount. A $5,000 loan costs exactly half of the $10,000 figures, and a $20,000 loan costs double. For example, at 12% over 60 months:
- $5,000 loan: $111.22 a month, $1,673 of interest.
- $10,000 loan: $222.44 a month, $3,347 of interest.
- $20,000 loan: $444.89 a month, $6,693 of interest.
| Rate | $5,000, 36 months | $5,000, 60 months | $20,000, 36 months | $20,000, 60 months |
|---|---|---|---|---|
| 8% | $156.68 / $641 | $101.38 / $1,083 | $626.73 / $2,562 | $405.53 / $4,332 |
| 12% | $166.07 / $979 | $111.22 / $1,673 | $664.29 / $3,914 | $444.89 / $6,693 |
| 20% | $185.82 / $1,689 | $132.47 / $2,948 | $743.27 / $6,758 | $529.88 / $11,793 |
| 34.99% | $226.15 / $3,141 | $177.42 / $5,645 | $904.61 / $12,566 | $709.68 / $22,581 |
Mistakes to avoid when you compare offers
- Comparing payments instead of total cost. The lowest payment is often the most expensive loan.
- Ignoring fees. Two offers at the same interest rate can have different APRs once fees are included.
- Adding optional insurance by default. Loan protection plans raise the payment; accept them only if you need the coverage.
- Choosing the longest term "just in case". If the loan is open, pick a shorter term you can afford, or pay extra when you can.
To see how extra payments shorten your debt, try our debt payoff calculator. And before you apply, check where you stand with our guide to checking your credit score in Canada, since your score sets the rate you will be offered.
Conclusion
Three numbers decide what a personal loan costs: the amount, the rate and the term. Use the tables above for a quick estimate, or the formula for an exact figure, and always compare offers on the total cost. A rate near 35% more than doubles the price of a $10,000 loan over 5 years, so it pays to shop around before you sign. Start with the bank, credit union and online options in our loans hub.
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Frequently asked questions about personal loan payments
What is the monthly payment on a $10,000 personal loan?
It depends on the rate and term. At 12% over 36 months, the payment is $332.14; over 60 months, it is $222.44. At 34.99% over 60 months, the payment rises to $354.84, and the total interest reaches $11,290. Use the table in this guide, or compare lenders on our loans hub.
Is it better to choose a shorter or longer loan term?
A shorter term costs less in total because you pay interest for fewer months, but the monthly payment is higher. A longer term eases your budget at the price of more interest. If your loan is open, a common approach is a term with a comfortable payment, plus extra payments whenever you can.
How do I calculate total interest on a personal loan?
Multiply the monthly payment by the number of payments, then subtract the amount borrowed. For a $10,000 loan at 12% over 36 months: $332.14 × 36 = $11,957.15, so the interest is $1,957.15. Add any upfront fees to get the full cost of the loan.
Does paying extra on a personal loan save money?
Yes, as long as the loan allows prepayment without a large fee. Extra payments go straight to the principal, so less interest builds up in the following months and the loan ends sooner. Our debt payoff calculator shows how much time and interest an extra amount saves.
What is the difference between the interest rate and the APR?
The interest rate is the price of borrowing the money alone. The annual percentage rate (APR) includes the interest plus most fees charged to set up the loan, so it reflects the real yearly cost. In Canada, the 35% legal ceiling applies to the APR, not just the interest rate. Our guide to improving your credit score explains how to qualify for a lower one.
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