Loans
Loan Comparison Calculator Canada
Compare a personal installment loan against a line of credit — total interest, monthly payment, and payoff timeline side by side.
Updated May 19, 2026
MoneyMapCanada Editorial Team
Editorial review and fact-check team
The MoneyMapCanada Editorial Team reviews every article and calculator for factual accuracy, source integrity, and consistency with current Canadian government guidance. Each piece is cross-checked against CRA publications, FCAC consumer guidance, CMHC rules, or CDIC coverage definitions before publication. The team also monitors for rate and rule changes and flags outdated content for revision.
Loan comparison inputs
Loan A — Installment Loan
Loan B — Line of Credit
Loan A — Installment
$518/mo
60 months · $6,065 interest
Loan B — Line of Credit
$500/mo
71 months · $10,500 interest
Loan A payment
$518
Loan B payment
$500
Loan A interest
$6,065
Loan B interest
$10,500
Total interest comparison
Total cost (principal + interest)
Side-by-side summary
| Amount borrowed | $25,000 |
|---|---|
| Loan A rate | 8.9% |
| Loan A fixed payment | $518 |
| Loan A payoff | 60 months |
| Loan A total interest | $6,065 |
| Loan B rate | 12.5% |
| Loan B payment (your choice) | $500 |
| Loan B payoff | 71 months |
| Loan B total interest | $10,500 |
| Interest-only minimum (LOC) | $260 |
| Lower total interest | Installment loan saves $4,435 |
How this calculator works↓
| Installment loan | Fixed monthly payment using standard amortization — fully repaid by end of term |
|---|---|
| Line of credit | Your chosen monthly payment applied to balance; no fixed end date unless you commit to a payment |
| Interest-only minimum | At 12.5%, the minimum interest-only payment on $25,000 is $260/mo — any payment above this reduces the principal |
| Key difference | Installment loan enforces discipline through a fixed term; LOC offers flexibility but risks minimum-payment traps |
| Note | LOC rates are typically variable and can rise; installment rates are usually fixed for the full term |
This calculator is best for
- ✓Canadians comparing a personal loan offer against a line of credit
- ✓Anyone evaluating total borrowing cost before signing
Not suitable for
- ✕HELOCs — home equity lines have different rates and collateral rules
- ✕Credit cards — use the credit card payoff calculator instead
Related guides and tools
Note: This calculator is designed to be conservative and may show slightly higher costs or lower returns than promotional tools. Use it for planning purposes only — not as a commitment from any lender or institution.
Calculator method
How to use this result before making a decision
Run a conservative scenario first, then test a best-case and stress-case version. A calculator is most useful when it shows whether the decision survives higher costs, slower payoff, lower returns, or a tighter monthly budget.
Methodology and limits
- Inputs are educational estimates and may use simplified formulas or rounded assumptions.
- Actual results can change because of tax rules, lender terms, fees, timing, compounding, province, credit profile, or provider eligibility.
- Use the output as a planning checkpoint, then confirm final numbers with official sources, your financial institution, employer, insurer, lender, or a qualified professional.
Is the Loan Comparison Calculator Canada free to use?
Yes. The Loan Comparison Calculator Canada is free to use and is designed for educational planning, quick estimates, and comparing Canadian money decisions before checking official sources or provider terms.
Are loan comparison calculator canada results exact?
No. Calculator outputs use simplified assumptions and sample formulas. Verify final numbers with official sources, lenders, tax agencies, providers, or a qualified professional.
What should I do after using the calculator?
Run a conservative scenario, compare at least two alternatives, read the full product terms, and make sure the result still fits your monthly budget and emergency fund.
Sources used
Official references checked for this page
Updated May 19, 2026
Each claim on this page is traceable to one of the government authorities or regulators below. Rates, tax rules, eligibility requirements, and product terms can change — verify current details directly with the linked source before making any financial decision.
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