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Guide

Payday Loan Costs Explained

A payday loan in Canada costs up to $14 for every $100 borrowed, with everything included. On $300 that is $42; on $500, $70; on $1,000, $140. Because the loan lasts only days, that fee equals an annual rate of about 365% on a 14-day term. A failed payment adds a one-time lender fee plus your bank’s NSF charge.

Last reviewed by the Public Cash Services editorial team

What is the maximum a lender can charge?

$14 per $100 borrowed, in every province with a payday-loan regime, since January 1, 2025. That figure must include all fees — the lender cannot add a separate application, e-Transfer or “broker” charge on top.

What will I repay?

You borrow Maximum fee You repay Annual rate, 14-day term
$100 $14 $114 365%
$300 $42 $342 365%
$500 $70 $570 365%
$1,000 $140 $1,140 365%
$1,500 $210 $1,710 365%

Why is the annual rate so high when the fee looks small?

The fee is charged for a very short time. $14 on $100 for 14 days is 1% a day; multiply by 365 days and you reach 365%. A longer term lowers the annual figure — the same fee over 30 days works out to about 170% — but the dollars you pay are the same. Try your own numbers in the cost calculator.

What extra charges are possible?

Dishonoured payment
A one-time fee from the lender if your debit or cheque bounces, plus whatever your bank charges for NSF.
Default interest
Provinces limit the interest a lender can charge on an overdue balance. Ontario, for example, caps it at 2.5% a month.
Charges that are not allowed
Rollover fees, renewal fees and fees for loading the loan onto a card where a province prohibits them.

How can I keep the cost down?

Quick answers

Is $14 per $100 the price everywhere?

It is the legal maximum, not a fixed price. A lender may charge less, though most charge the maximum.

Does repaying early reduce the fee?

Usually not; the fee is set per $100 borrowed, not per day. Check your agreement, and remember the cancellation period lets you return the money at no cost.

Sources

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