When you borrow $1,000, the number on the contract is only the beginning. What really matters is how many payments there are, how large each one is and how much more than $1,000 you send back by the end. This article answers the question people type into search engines every day, how much does a $1,000 loan cost in Canada, with worked examples from the Alternative Loans payment simulator. This guide walks through the loan cost of $1,000 on weekly, biweekly and monthly schedules, and how the loan cost changes with the schedule.
Quick answer: the loan cost of $1,000 is the amount you borrow plus interest and any fees, and the schedule you choose changes the total. The same loan cost can look very different on a weekly schedule than on a monthly one, so compare the total, not just the payment. Check the loan cost on each schedule before you choose.
Loan cost in Canada: a $1,000 loan, schedule by schedule
| Schedule | Payments | Each payment | Total repaid | Cost of borrowing |
|---|---|---|---|---|
| Weekly | 8 | $128.37 | $1,026.94 | $26.94 |
| Every two weeks | 4 | $257.48 | $1,029.90 | $29.90 |
| Monthly | 2 | $519.46 | $1,038.91 | $38.91 |
These amounts come straight from the simulator on our homepage. Your own offer can differ based on your application and province, so read the terms you receive before accepting.
The same math for $500 and $1,500
Smaller and larger loans follow the same pattern. For $500, the weekly option is eight payments of $64.18 for a total of $513.47, and the monthly option is two payments of $259.73 for $519.46. For $1,500, weekly is eight payments of $192.55 for $1,540.41, while monthly is two payments of $779.19 for $1,558.37.
| Schedule | Payments | Each payment | Total repaid | Cost of borrowing |
|---|---|---|---|---|
| $500, weekly | 8 | $64.18 | $513.47 | $13.47 |
| $500, bi-weekly | 4 | $128.74 | $514.95 | $14.95 |
| $1,500, weekly | 8 | $192.55 | $1,540.41 | $40.41 |
| $1,500, bi-weekly | 4 | $386.21 | $1,544.85 | $44.85 |
What the numbers reveal
More frequent payments cost less overall, because each one reduces the balance sooner. A weekly plan is cheapest in total but asks for a payment every seven days, so it must fit your weekly budget. A bi-weekly plan keeps repayments in step with a paycheque every second week. A monthly plan produces the largest payments and the highest total, and it only makes sense if your income also arrives monthly.
Pick the schedule that fits how you are paid
Begin with your pay frequency, then list rent, utilities, food and transport. The right loan payment is the biggest one you can make without touching those basics. When two options look close, choose the one that lines up with your pay date and borrow the smaller amount.
Why the total matters more than the payment
A low payment feels comfortable, yet a longer loan generally costs more in the end. Looking at both the payment and the total you repay gives you the full picture, and it is the quickest way to compare two lenders honestly.
Before you borrow, check the fine print
Confirm the rate is fixed, ask what a late payment costs and make sure the lender is easy to contact. Our checklist for bad credit loans in Canada covers these points one by one, and our guide to the difference between an installment loan and a payday loan explains why a spread-out repayment is usually easier on your budget.
What changes the cost of a loan
Three things move the total more than any other: the amount you borrow, how often you pay and how long it takes to repay. A bigger amount means more interest, a slower schedule means more days of interest and a longer term spreads the bill out while raising it. Fees for late or missed payments can add to the total, which is why paying on time is the cheapest habit a borrower can have.
Simple ways to keep the cost down
Borrow only what covers the need, not a round number that feels safe. Choose the most frequent schedule your budget can carry, since each payment shrinks the balance sooner. Set up your payment dates right after your pay lands, so the money is still there. And if you can repay early without a penalty, ask your lender whether that is allowed.
A quick budget check before you commit
Take your monthly take-home pay and subtract rent, utilities, groceries, transport and any existing debt payments. What is left is the room you actually have. If the loan payments would use most of it, ask for a smaller amount or a lighter schedule. A plan that leaves a little breathing room is far less likely to go wrong.
Quick answers
How is the cost of borrowing calculated?
It is the total you repay minus the amount you borrowed. The tables above show that figure for each schedule.
Will my offer match these examples?
Not necessarily. The examples come from our simulator, and your offer depends on your application and province.
What is the smallest loan I can request?
Alternative Loans offers $250 to $1,500, with up to $5,000 available on evaluation.
Run your own numbers
Slide the amount and the schedule in our payment simulator until the payment feels right. When it does, you can apply here and our team aims to answer within 4 hours.
Keep reading
Not sure how much to ask for? Our loan amount guide can help you size the request, and line of credit versus personal loan compares two common options.
Examples are illustrative and not an offer of credit. This is general information, not financial advice.
Sources and further reading
- What to consider before borrowing money (Financial Consumer Agency of Canada)
- Personal loans (Financial Consumer Agency of Canada)
The bottom line: before you accept a loan, compare the loan cost, the schedule and the total you will repay. A lower payment is not always a lower loan cost, so ask what the loan cost will be on each schedule.