How Much Does a $500 Payday Loan Really Cost in Canada?

A $500 payday loan costs $70 at a borrowing rate of $14 per $100, bringing the total repayment to $570. If the full amount is due in 14 days, the APR equivalent is 365%. This example uses the maximum borrowing cost allowed in provinces with regulated payday lending and assumes repayment on time.

A $500 expense can be difficult to cover before payday, but the amount arriving in a bank account tells only half the story. The other half is the $570 leaving it when repayment falls due. Before accepting an offer, it helps to work out whether that payment will leave enough for rent, groceries, transport and the bills already scheduled.

How Much Does a $500 Payday Loan Cost?

At $14 for every $100 borrowed, the calculation is straightforward:

$500 ÷ $100 × $14 = $70 in borrowing charges.

Loan detail	Illustrative amount
Amount received	$500
Cost per $100 borrowed	$14
Total borrowing cost	$70
Total repayment	$570
Example repayment period	14 days
APR equivalent	365%

The $70 is the borrowing charge, not the total payment. Repaying only the original $500 would leave the charge unpaid.

These figures are an illustration rather than a personalised offer. The $14-per-$100 figure is a ceiling where the regulated payday-loan framework applies, not a required price. A lender may charge less. Provincial rules and the actual agreement determine the terms available.

For other loan amounts, see the payday loan cost table on the EMT Cash

Why Is the APR 365% If the Fee Is 14%?

The two percentages measure the cost over different periods. A $70 charge is 14% of $500, but in this example it covers just 14 days. APR expresses that cost on an annual basis so borrowing products can be compared using a common measure.

For a loan with one repayment at the end of its term:

APR = (borrowing cost ÷ amount borrowed) × (365 ÷ loan days) × 100

For this example:

($70 ÷ $500) × (365 ÷ 14) × 100 = 365% APR.

That does not mean a borrower repaying on day 14 owes a year’s worth of charges. The scheduled payment is still $570. It does show how expensive a $70 fee is for two weeks of access to $500.

Ontario’s government uses this same $500, $70 and 14-day example in its guide to payday loan APR calculations.

Does a Different Repayment Date Change the APR?

Yes. The annual equivalent depends on both the charge and the number of days the money is borrowed. If the fee stays at $70, these are the mathematical equivalents:

Illustrative term	Borrowing charge	Total repayment	APR equivalent
14 days	$70	$570	365.00%
21 days	$70	$570	243.33%
30 days	$70	$570	170.33%

These examples assume the full $500 remains outstanding until one final payment. They are calculations, not advertised loan terms or a promise that a particular repayment period is available. A lower annual equivalent does not reduce the $70 charge when the fee stays the same.

Is the $500 Payday Loan Cost the Same Across Canada?

The $14-per-$100 example should not be treated as a universal price for every Canadian borrower. The Financial Consumer Agency of Canada explains that this maximum applies in provinces with payday-loan regulations. Other provinces and territories fall under a different framework, with borrowing costs limited by the criminal interest rate of 35% APR.

Ontario, British Columbia and Alberta are among the provinces using the $14-per-$100 maximum. At that rate, a $500 loan has a $70 borrowing cost in each of those provinces, although other lending requirements can differ.

Check the rules where the loan agreement is entered into, as well as the lender’s authorisation to operate there. The federal Criminal Interest Rate Regulations set the 14% borrowing-cost limit for payday loans covered by the exemption framework.

Could the Final Cost Be More Than $570?

The $570 example assumes the agreed payment is made on time. A failed or missed payment can introduce additional costs permitted under provincial law, including a dishonoured-payment charge or interest on an overdue balance. A bank may also charge its own fee when a debit fails.

Before signing, check these items in the agreement:

• Net amount received: Confirm that $500 will actually reach the bank account.
• Total borrowing charge: Check the full dollar cost, rather than looking only at the advertised rate.
• Scheduled repayment: Confirm the amount, date and payment method.
• Missed-payment terms: Read what happens if the payment cannot be collected.
• Optional products: Check whether anything additional is being offered and whether it is permitted locally.

The federal regulations distinguish the ordinary borrowing-cost limit from certain provincially authorised default and dishonoured-payment charges. That is why an on-time repayment example cannot predict every cost following a missed payment.

If repayment looks difficult, contact the lender before the due date and ask what arrangements are available under the applicable provincial rules.

Can a $570 Repayment Fit the Next Paycheque?

Approval alone does not establish affordability. A useful check is to subtract essential spending from the income available before the loan payment is due.

Consider this example:

Budget item	Amount
Next take-home pay	$1,600
Rent, groceries, transport and other commitments before the following payday	$1,150
Money remaining before the loan payment	$450
Scheduled payday loan repayment	$570
Shortfall	$120

Here, the repayment would leave a $120 gap even though the next paycheque is much larger than the original loan. Borrowing has moved the problem to the next pay period and added a fee.

Use actual bill dates when doing this calculation. Include pre-authorised payments, existing debt payments and a reasonable allowance for food and transport. If the numbers leave another shortfall, consider a smaller amount or a different way to handle the expense.

Does an Interac e-Transfer Payday Loan Cost Less?

Interac e-Transfer describes how approved funds are delivered. It does not, by itself, establish the borrowing price. A loan received electronically can still carry the same $70 charge in this example.

Likewise, phrases such as “24/7 applications,” “bad credit considered” or “no credit check” do not establish that an offer is affordable. Compare the amount received, total repayment and due date on the written agreement.

The EMT Cash payday loan FAQs explain that lender requirements and funding times vary. EMT Cash does not issue loans or make the final lending decision; the lender providing an offer sets its terms within the applicable rules.

What Could Cost Less Than a $500 Payday Loan?

Before paying $70 to borrow $500, check whether the expense can be handled another way:

• Ask the bill provider about a payment arrangement. Confirm any fee and the revised due date before agreeing.
• Check an existing bank or credit union credit option. A line of credit or authorised overdraft may cost less, depending on its terms.
• Compare a credit card cash advance carefully. Include the advance fee and interest from the transaction date.
• Ask about an employer pay advance. Check whether charges apply and how it affects the next paycheque.

Compare each option using the same $500 amount and repayment period. An account fee or minimum charge can change the result, so an interest rate alone is not enough.

The Financial Consumer Agency of Canada’s payday loan guide explains lower-cost alternatives and the consequences of missed payments.

Frequently Asked Questions About $500 Payday Loan Costs