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# Assumptions

- For the purposes of this calculation, we assume that interest on all loan options is compounded monthly, and the maximum loan repayment period is 20 years.
- We assume that the interest rate that you enter for government loans is equivalent to the prime rate, and we apply a typical “bump-up” of 5% or 2.5% depending on the type of loan selected. We have assumed that the interest rates on government sponsored loans are equivalent to Canada Student Loans, which carry a maximum fixed interest rate of the prime rate plus 5% or a maximum variable rate of the prime rate plus 2.5%. Provincial student loans have different interest rates varying from province to province, so your results may differ.
- There is a 6-month grace period on government-sponsored student loans where payments are not required. However, during this period interest will accumulate. For the purpose of this calculation, we have assumed that the loan repayments start immediately after graduation.
- We assume the interest rate entered is an annual interest rate. The calculation assumes the interest rate is compounded monthly and uses the annual interest rate to calculate an effective monthly interest rate.
- The first loan payment occurs at the end of the first month.

Use this calculator to compare up to 3 different student loan options. By filling in different information in each option, you can see which scenario best fits your repayment goals. You’ll also see how increasing your monthly payments can reduce the time to pay back your loan.

Option 3

Option 2

Option 1

# Save more on interest

By increasing your monthly payment by **$50** you could save money on interest and decrease your payback period.

By increasing your monthly payment by **$100** you could save money on interest and decrease your payback period.