{"id":76,"date":"2026-05-29T14:47:43","date_gmt":"2026-05-29T14:47:43","guid":{"rendered":"https:\/\/cashpicks.ca\/blog\/?p=76"},"modified":"2026-10-26T05:52:38","modified_gmt":"2026-10-26T05:52:38","slug":"payday-loan-cost-canada","status":"publish","type":"post","link":"https:\/\/cashpicks.ca\/blog\/payday-loan-cost-canada\/","title":{"rendered":"Payday Loan Cost in Canada: $300 and $500 Examples"},"content":{"rendered":"\n

The payday loan cost in Canada<\/strong> is easier to work out than most people expect. Since January 1, 2025, federal rules cap it at $14 for every $100 you borrow, with every fee included. A $300 loan costs at most $42, and a $500 loan costs at most $70.<\/p>\n\n\n\n

Below you’ll find how the cap works, a table for amounts from $100 to $1,500, why the APR looks so large, and the extra charges that can still catch you out.<\/p>\n\n\n\n

How the payday loan cost cap works in Canada<\/h2>\n\n\n\n

The $14 per $100 limit covers interest, set-up fees, administration fees and anything else the lender charges to give you the loan. A lender can charge less, but not more. So the payday loan cost in Canada is easy to predict for a single loan. If you borrow $100, the most you repay is $114.<\/p>\n\n\n\n

Also, because the cap is a flat rate per $100, the cost grows in step with the loan. $200 costs up to $28 and $400 costs up to $56. The Financial Consumer Agency of Canada<\/a> has a plain-language summary of the rule.<\/p>\n\n\n\n

The cap applies wherever payday loans are offered in Canada. They aren’t available in Quebec.<\/p>\n\n\n\n

What a $300 payday loan costs<\/h2>\n\n\n\n

At the maximum rate, a $300 loan costs $42. You repay $342 on your due date, usually in one payment taken from your bank account. In Alberta, the law requires repayment in instalments, so the same $342 would be split across at least 42 days.<\/p>\n\n\n\n

However, if a lender quotes more than $42 for $300, it’s charging more than the law allows.<\/p>\n\n\n\n

What a $500 payday loan costs<\/h2>\n\n\n\n

A $500 loan costs up to $70, for a total repayment of $570. That figure is the ceiling. A lender that adds a separate “processing”, “insurance” or “membership” charge on top is going past the cap.<\/p>\n\n\n\n

Payday loan cost table for Canada<\/h2>\n\n\n\n

These figures show the highest payday loan cost in Canada for a single loan at $14 per $100.<\/p>\n\n\n\n

You borrow<\/th>Maximum cost<\/th>Total to repay<\/th><\/tr><\/thead>
$100<\/td>$14<\/td>$114<\/td><\/tr>
$200<\/td>$28<\/td>$228<\/td><\/tr>
$300<\/td>$42<\/td>$342<\/td><\/tr>
$500<\/td>$70<\/td>$570<\/td><\/tr>
$750<\/td>$105<\/td>$855<\/td><\/tr>
$1,000<\/td>$140<\/td>$1,140<\/td><\/tr>
$1,500<\/td>$210<\/td>$1,710<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

You can try your own amount and term in the payday loan calculator<\/a>.<\/p>\n\n\n\n

\"Person<\/figure>\n\n\n\n

Why the APR looks so high<\/h2>\n\n\n\n

For example, payday loans often show up with an annual percentage rate of around 365%. The fee itself hasn’t changed. APR expresses the cost as if the loan ran for a full year, and a payday loan usually runs for about two weeks.<\/p>\n\n\n\n

Here’s the maths. First, $14 on $100 is 14% for the term. A year has about 26 two-week periods, and 14% repeated 26 times comes to roughly 364%. You’ll only pay that much if you keep taking a new loan every payday for a year.<\/p>\n\n\n\n

That’s the real risk with payday loans. Still, one loan has a fixed cost you can see in advance. A string of back-to-back loans means paying the fee again each time, and the total climbs quickly.<\/p>\n\n\n\n

Extra charges to budget for<\/h2>\n\n\n\n

The $14 per $100 cap covers the cost of the loan itself. Two other charges can apply if your repayment bounces. The lender can charge a one-time returned payment fee, which provinces cap, usually at $20 or $25. Your own bank may also charge an NSF fee for the failed payment, and at the big banks that is often $45 or more.<\/p>\n\n\n\n

Good to know<\/strong>

If you think you’ll be short on the due date, contact the lender before it arrives. In Ontario and BC, taking a third loan within about two months means the lender has to offer you a longer repayment plan.<\/p><\/div>\n\n\n\n

How the payday loan cost compares with other options<\/h2>\n\n\n\n

In general, the payday loan cost in Canada is higher than most other short-term borrowing. Paying $42 to borrow $300 for two weeks is more than a credit card or a line of credit would usually charge for the same period. Meanwhile, credit union loans and employer pay advances often cost less again.<\/p>\n\n\n\n

Our guide to payday loan alternatives in Canada<\/a> goes through six of them, and the responsible borrowing guide<\/a> helps you decide what fits.<\/p>\n\n\n\n

Before you apply<\/h2>\n\n\n\n

First, work out the exact cost for your amount. Then check that the lender is licensed in your province, and make sure the repayment fits your next paycheque. If a payday loan is still the right call, you can check your eligibility<\/a> and see the full cost before you sign anything. Our guide to payday loan rules by province<\/a> covers your cancellation rights.<\/p>\n\n\n\n

Frequently asked questions<\/h2>\n\n\n