Payday loan cost calculator
Payday borrowing is capped at $14 per $100 in provinces with a payday lending regime.
Total repayable
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How this calculator works
- Divide the loan amount by 100 and multiply by the cost per $100 to get the cost of borrowing.
- Add the cost to the amount borrowed to get the total repayable.
- Annualise the cost over the term to express it as an effective APR.
Formula: Cost = (amount ÷ 100) × cost per $100; APR ≈ (cost ÷ amount) × (365 ÷ days) × 100
Frequently asked questions
What is the legal maximum cost of a payday loan in Canada?
Since 1 January 2025 the federal Criminal Interest Rate Regulations cap the cost of borrowing at $14 per $100 in provinces that operate a payday lending regime, and cap dishonoured-payment fees at $20. Payday lending is not permitted in Quebec.
Why is the APR so high for a short-term loan?
Because the cost is charged over a very short term. Annualising a two-week fee produces a very large percentage even though the dollar cost looks small.
Is a payday loan cheaper than an instalment loan?
Not usually. An instalment loan spreads the cost over a longer term, which typically lowers the effective annual cost. Compare the total cost of credit for both.
Sources
- Criminal Interest Rate Regulations: SOR/2024-114 — Government of Canada — Canada Gazette
- FCAC — Payday loans — Financial Consumer Agency of Canada
Important legal information
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