$14 per $100 at most
Since January 1, 2025, the cost of a payday loan can't be more than $14 for every $100 borrowed, with all fees included.
See the real costof a payday loanin Canada
Use this payday loan calculator for Canada to choose an amount and how long you need. Then you'll see the most it can cost under the federal cap, your total repayment, the due date and the equivalent annual rate.
- Uses the federal maximum of $14 per $100
- No personal details needed
- Checking won't affect anything
Federal cap applied
$14 / $100
$100$1,500
1 day62 days
You borrow$500
Maximum cost$70
Repay by $570
Equivalent APR365%
Apply for $500
These are the highest figures the federal cap allows, so your actual cost in your loan agreement may be lower. Not a loan offer.
One flat fee
The fee stays the same. The APR doesn't.
Generally, lenders price a payday loan as a flat fee per $100 borrowed. Borrowing $500 costs up to $70 whether you repay in 7 days or 62. What changes is the equivalent annual rate, because the same fee covers a shorter or longer time.
So for a loan this short, the dollar cost is the easier number to compare. Also, your agreement will show both.
7 days730%
14 days365%
30 days170%
62 days82%
Fee on every row: $70 on $500
How the cost works
How this payday loan calculator for Canada works
It doesn't grow each day
For example, borrowing $300 costs up to $42 whether you repay in a week or in 62 days. Instead, the term only sets your due date.
Shown before you sign
Your agreement lists the fee, the total repayment and the due date before you commit to anything.
Canada's payday loan rules
Canada payday loan rules behind the calculator
In fact, both the federal government and each province regulate payday lending. These are the rules worth knowing before you borrow.
$14 per $100 cap
Set by the federal criminal interest rate rules from January 1, 2025, and it includes every fee.
Up to $1,500, up to 62 days
First, a payday loan is $1,500 or less, and you must repay it within 62 days. Some provinces also limit a loan to a share of your net pay.
Provincial rules on top
Provinces also license lenders and set rules on cooling-off periods, rollovers, repeat loans and what lenders must disclose.
Not available in Quebec
Quebec caps the cost of consumer credit at 35% a year, so lenders don't offer payday loans there.
Cooling-off period
In most provinces, you can cancel within two business days of signing. However, the exact period depends on your province.
Check the licence
Also, the Financial Consumer Agency of Canada suggests checking that a lender holds a licence in your province. Asking for a fee before you get the loan is a warning sign.
Examples at the federal cap
Each example uses a 14-day term, so you can compare them directly. Still, your actual cost may be lower.
$100
- Borrowing cost
- $14
- Total to repay
- $114
$300
- Borrowing cost
- $42
- Total to repay
- $342
$500
- Borrowing cost
- $70
- Total to repay
- $570
$1,500
- Borrowing cost
- $210
- Total to repay
- $1,710
Because payday loans are an expensive way to borrow, they suit a one-off, short-term need. So check that the full repayment fits your next paycheque. If you're struggling with debt, free non-profit advice is available from Credit Counselling Canada.
01Does the fee change with the repayment term?
No. In fact, the $14 per $100 cap is a flat maximum on the cost of borrowing rather than a daily rate. The term changes your due date and the equivalent APR, but not the most a lender can charge in dollars.
02How do we work out the equivalent APR?
First, we take the fee as a share of the amount borrowed, then scale it to a full year. At $14 per $100, you take 14%, multiply it by 365 and divide by the number of days, so 14 days comes to about 365%.
03Will my cost be exactly what the calculator shows?
In short, the calculator shows the highest cost the federal cap allows. Your loan agreement sets out your actual cost before you sign, and it can be lower.
04Can I repay early to save money?
You can repay before your due date without a prepayment penalty. Because the fee is flat, repaying early doesn't usually lower it, but it does clear the loan sooner.
Happy with the numbers?
If the payday loan calculator for Canada shows a cost that fits your budget, the application takes about five minutes, and checking doesn't commit you to anything.