How much does a payday loan cost in Canada?

Since 1 January 2025, a maximum of $14 per $100 borrowed. So a $500 loan costs at most $70 for a two week term, and you repay $570. As an annual rate, that flat fee works out to about 365%.

What is the maximum payday loan fee in Canada?

$14 per $100 borrowed, a federal cap effective 1 January 2025. Before then, provincial caps ranged from $15 to $17. Any licensed lender charging more on a new agreement is breaking federal law.

What's the APR on a payday loan?

About 365% for a typical 14 day loan. The $14 per $100 fee is 14% for two weeks, and there are roughly 26 two week periods in a year, so it annualises to around 365% more than fifteen times a typical credit card rate.

Are payday loans legal in Quebec?

No. Quebec caps all consumer credit at 35% APR and has never created a payday loan exemption, so traditional payday lenders don't operate there. Quebec residents needing short term funds can use lower cost options such as a credit union loan or a cash advance app.

How much can I borrow with a payday loan?

Usually up to $1,500, but most provinces also cap the loan at 50% of your net pay for the period 30% in Manitoba. The lower of those two limits applies.

Can I cancel a payday loan?

Yes. In provinces with payday legislation you have a cooling off period usually two business days during which you can cancel, return the principal, and owe nothing.

What happens if I can't repay a payday loan?

The lender can charge interest on the outstanding amount and may pass the debt to a collection agency, which can affect your credit. But a payday loan is a civil debt nobody can have you arrested over it, and anyone threatening arrest is breaking the law. If you're struggling, free non profit credit counselling can help.

Is the $14 per $100 cap the same in every province?

The fee cap is federal, so it's $14 per $100 wherever payday lending is legal. The protections around it cooling off periods, rollover rules, loan to income limits are set provincially and differ. Quebec and several provinces without payday legislation effectively don't permit the product.

What's cheaper than a payday loan?

Almost everything. An employer pay advance or a cash advance app on standard delivery can cost nothing; a line of credit might cost a couple of dollars; a credit card cash advance about $9 against $70 for a payday loan on the same $500. A payday loan is usually the most expensive option available.

How do I know if a payday lender is licensed?

Every legal payday lender holds a provincial licence and displays the number. Provincial regulators keep searchable databases you can check before borrowing. A lender charging more than $14 per $100, offering no written agreement, or threatening arrest is not operating legally.

Is this calculator free?

Yes. No account, no email, no limits and we don't lend money or refer you to anyone who does.

Payday Loan Calculator Canada

A payday loan's fee looks small $14 for every $100 you borrow. As an annual rate, that's about 365%.

This calculator shows what a payday loan actually costs, what it adds up to if you borrow again next payday, and what cheaper options exist. We don't lend money and we don't refer you to anyone who does.

Payday Loan Canada

Province / Territory

Loan Principal Amount ($100 – $1,500)

Loan Duration (Days until Payday)

Borrowing Fee per $100

Legal maximum in Ontario: $14 per $100.

High Cost Borrowing Alert

365% Annual Percentage Rate (APR)

Borrowing $500.00 costs $70.00 in fees over 14 days. Total due: $570.00.

Borrowing Fee

$70.00

$14 per $100 borrowed

Effective APR

365%

Over 14-day term

Total Repayment

$570.00

Due on next payday

Cost Comparison with Alternatives

Payday Loan Fee (14 days)$70.00365% APR

Credit Card Cash Advance$9.03Saves $60.97

Under Canadian Provincial Payday Loans Acts, lenders must cap fees at $14 per $100 borrowed. Payday loans are intended for short-term emergency cash only.

What a Payday Loan Actually Costs

A payday loan is a small, short term loan you repay on your next payday, usually within two weeks. Since 1 January 2025, the most a licensed lender can charge is $14 for every $100 borrowed.

You borrow	Maximum fee	You repay
$100	$14	$114
$300	$42	$342
$500	$70	$570
$1,000	$140	$1,140
$1,500	$210	$1,710

That Fee Is Really an Annual Rate of About 365%

A flat $14 fee doesn't sound like an interest rate. Converting it to one is the single most useful thing this calculator does, because it lets you compare a payday loan against every other way of borrowing.

The math:

A $70 fee on a $500 loan is 14% for two weeks. There are about 26 two week periods in a year. 14% × 26 ≈ 365% a year.

The Debt Cycle, Calculated

Here's what happens when someone repays a $500 loan on payday, then finds they're short again and borrows the same $500 next payday:

Pay period	Fee paid	Total fees so far
1	$70	$70
2	$70	$140
3	$70	$210
4	$70	$280
5	$70	$350
6 (3 months)	$70	$420

Cheaper Alternatives, With Real Numbers

Option	Approximate cost ($500)
Employer pay advance / Cash advance app	Often $0
Line of credit (12% APR)	~$2.30
Credit card cash advance	~$9
Payday loan	$70 (~365% APR)

Why Use the CalcVault Payday Loan Calculator

Translates Fees to APRShows how a $14/$100 fee equals ~365% annualised interest.

Repeat Borrowing MathVisualises how rolling over loans creates compound fee cycles.

Updated 2026 RulesReflects federal $14 per $100 cap and 35% APR criminal rate rules.

100% IndependentNo lender referrals, zero affiliate links, no lead sales.

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Payday Loan FAQs

Sources and Disclaimer

Sources: FCAC (Payday loan guidance), Criminal Code section 347 (effective 1 January 2025), provincial regulators (Consumer Protection BC, Service Alberta, Ontario Ministry).

Disclaimer: CalcVault is not a lender or broker. This calculator is for educational purposes only. If you are struggling with debt, contact a non profit credit counsellor.