Total Cost of Borrowing Calculator (Canada)

How this calculator works

The total cost of borrowing is principal + interest + mandatory fees. Canadian lenders are generally required to disclose a cost-of-borrowing figure for fixed-amount credit agreements, which is why the number on your agreement is the one to check rather than an estimate.

The most effective lever is usually the term, not the rate: a shorter term means less time for interest to accrue. The trade-off is a higher required payment, which is where a co-signer can help you qualify for a term and rate you could not get alone.

Assumptions and limits

This is an educational estimate produced entirely in your browser. It is not an offer of credit, an approval, or financial advice, and it does not use your real credit file. Lenders apply their own policy, pricing, and verification.

Frequently asked questions

What counts as a fee?

Any mandatory charge to obtain the loan — origination, administration, or broker fees. Optional products such as insurance are usually separate and should be assessed on their own merits.

Is a lower monthly payment always better?

No. Stretching the term lowers the payment but increases total interest. Compare total cost, not just the payment.

Does the APR include fees?

The APR is designed to include interest and most mandatory fees so offers are comparable — which is why it is the number to compare.

Can fees be negotiated?

Sometimes. Fees vary widely by lender and channel, so it is reasonable to ask what is negotiable before signing.

Sources

Financial Consumer Agency of Canada — Loans — Government of Canada (FCAC)
Criminal Code, R.S.C. 1985, c. C-46, s. 347 (criminal interest rate) and Criminal Interest Rate Regulations SOR/2024-114 — Government of Canada (Department of Justice)
Bank of Canada — Interest rates — Bank of Canada

Check your options

Compare options with a licensed Canadian partner. Checking your own rate does not, by itself, commit you to anything.

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Advertising disclosure: we may be paid a commission when you apply through a partner link on this site. This does not change what you pay. Submitting an enquiry does not guarantee approval. All applications are subject to the lender's own criteria, verification, and credit checks.