What does a payday loan actually cost in Canada? The fee is capped by your province — between $14 and $17 per $100 borrowed — but the annualized rate (APR) is high. This guide breaks down the real numbers so there are no surprises.
How Payday Loan Costs Are Capped
Unlike most loans, payday loan pricing is set as a flat maximum dollar amount per $100 borrowed, not an interest rate. Each province sets its own cap, and lenders cannot legally charge more. That fee covers the full cost of borrowing for the loan’s short term.
This matters because the fee can look small (“just $15”) while representing a very high annual percentage rate once the short term is annualized.
Maximum Payday Loan Cost by Province
| Province / Territory | Maximum cost per $100 borrowed |
|---|---|
| Newfoundland & Labrador | $14 (lowest in Canada) |
| Ontario | $15 |
| British Columbia | $15 |
| Alberta | $15 |
| Nova Scotia | $15 |
| New Brunswick | $15 |
| Prince Edward Island | $15 |
| Manitoba | $17 |
| Saskatchewan | $17 |
| Quebec | No payday model (≈35% APR cap) |
| Yukon / NWT / Nunavut | No payday-specific cap |
Caps change over time. Confirm the current figure for your province on our province pages or with the Financial Consumer Agency of Canada.
Real Cost Examples
Here’s what a typical 14-day payday loan costs at $15 per $100:
- $100 loan → $15 fee → repay $115
- $300 loan → $45 fee → repay $345
- $500 loan → $75 fee → repay $575
- $1,000 loan → $150 fee → repay $1,150
In Manitoba or Saskatchewan ($17 per $100), a $500 loan would cost $85. In Newfoundland & Labrador ($14 per $100), it would cost $70.
Why the APR Looks So High
A $15 fee on a $100 loan for 14 days works out to an APR of about 391%. The APR is high because the fee is charged over a very short period — if you annualize a two-week fee, the number balloons. This is why payday loans are best used only for short-term needs and repaid on time. For longer or larger borrowing, an installment loan or line of credit is usually far cheaper.
Other Fees to Watch For
- Default and NSF fees if a payment bounces (capped provincially)
- Interest on overdue amounts after the due date
- Costs of rolling over a loan — restricted or banned in many provinces
Always read the agreement and confirm the total amount due before you sign.
Frequently Asked Questions
What is the maximum a payday lender can charge in Canada?
It ranges from $14 per $100 in Newfoundland & Labrador to $17 per $100 in Manitoba and Saskatchewan. Most provinces cap it at $15 per $100.
Is the fee the same as interest?
No. Payday loans use a flat fee per $100 rather than an ongoing interest rate, though that fee equals a high APR when annualized.
Can I pay a payday loan back early?
Yes, and you generally should — many provinces also give a two-business-day cooling-off period to cancel at no cost.
Why are payday loans cheaper in some provinces?
Each province sets its own cap based on local consumer-protection rules, so the maximum cost varies from $14 to $17 per $100.
Know the Cost Before You Borrow
Check your province’s cap, compare it to the alternatives, and only borrow what you can repay on payday.
About the Author
This article is for general information only and is not financial advice. Get Payday Loans Canada is a loan-matching service, not a lender. Costs shown are illustrative maximums; your actual cost is set out in your loan agreement and capped by your province. Example: a $300 payday loan at $15 per $100 for 14 days costs $45 (APR ≈ 391%). Borrow only what you can repay on your next payday.