Loans Calculators · Canada
Line of credit calculator.
Calculate interest costs and minimum payments for your line of credit. Compare interest-only minimums to fixed monthly payments and see your payoff timeline.
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Lines of credit in Canada
A line of credit (LOC) is flexible revolving credit you can use as needed. You only borrow and pay interest on what you use, and you can re-borrow as you repay.
Types of lines of credit
- Personal LOC (unsecured): no collateral, rates Prime + 3–6%, limits $5K–$100K.
- Secured LOC: backed by home or investments, rates Prime + 0.5–2%, higher limits.
- HELOC: home equity line, rates Prime + 0.5%, up to 65% of home value.
- Business LOC: for operating expenses, rates vary by creditworthiness.
- Student LOC: for education, often Prime or Prime + 0.5–1% while in school.
How interest works
Interest is calculated daily on your outstanding balance and charged monthly. Unlike credit cards, there is no grace period — interest starts accruing immediately when you borrow.
Pros and cons
Pros: flexibility, lower rates than credit cards, reusable credit, interest-only minimums for cash flow.
Cons: variable rates rise with Prime, no forced repayment makes it easy to carry a balance, can be recalled by the lender.
Disclaimer
This calculator provides estimates. Actual rates, limits, and terms vary by lender and borrower qualifications. LOC rates are variable and can change. Interest is generally only tax-deductible if funds are used for business or income-producing investments. Consult your financial institution for specific details.