Line of Credit Calculator Canada

A line of credit minimum payment is usually interest only, which means the balance can sit unchanged for years. This calculator shows the interest-only cost today, then the finish date and total interest if you commit to a fixed monthly payment instead.

Line of credit balance ($)Interest rate (%)Fixed monthly payment ($)

Interest calculated monthly on the outstanding balance. Line of credit rates are variable, tied to the lender’s prime rate, so a prime increase stretches every timeline shown here.

How it works

Personal lines of credit in Canada typically price at prime plus a spread based on your credit profile, and secured lines (HELOCs) price lower than unsecured ones. Either way, the minimum payment is commonly the month’s interest, so discipline, not the lender’s schedule, decides when the debt ends.

At $300 a month fixed, a $10,000 balance at 8% clears in 38 months with $1,346.95 of interest. At interest-only, the same debt costs about $800 a year, forever, and the $10,000 is still owed at the end of every year.

Worked example

The calculator’s own output for $10,000 at 8% paid at a fixed $300 a month:

Item	Amount
Balance / rate	$10,000.00 at 8.00%
Interest-only payment today	$66.67 a month
Fixed payment tested	$300.00 a month
Time to clear	38 months (3 years, 2 months)
Total interest at that pace	$1,346.95

Frequently asked questions

What is the minimum payment on a line of credit?

Most Canadian lenders set it at the month’s interest, sometimes plus a small principal slice or a flat fee. Interest-only minimums mean the balance never falls unless you pay extra, which is the behaviour this calculator assumes you choose.

Is a line of credit cheaper than a credit card?

Almost always: unsecured lines commonly price in the high single digits to low teens, secured HELOCs near prime, versus 19.99% or more on cards. Moving card debt to a line can help only if the card then stays unused.

Can the bank reduce or cancel my line of credit?

Yes. Lines of credit are generally demand facilities: the lender can cut the limit or require repayment, especially after missed payments or a credit review. It is a fragile place to hold essential debt.

Secured vs unsecured line of credit: what changes?

A secured line (backed by your home, a HELOC) offers a lower rate and a higher limit but puts the asset at risk. An unsecured line costs more and is smaller but risks nothing but your credit record.

Should I pay my line of credit before investing?

Paying an 8% line is a guaranteed, tax-free 8% return. Few investments promise that, so most plans clear expensive revolving debt before adding investment risk, beyond any matched employer pension contributions.

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For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.