RBC Line of Credit Calculator

RBC line of credit interest rate explained

A personal or home equity line of credit (LOC) from RBC charges interest only on the amount you draw, not your full approved limit. RBC line of credit interest rates are typically quoted as prime plus or minus a margin for secured HELOCs, or a standalone rate for unsecured personal lines. Rates float with the Bank of Canada policy rate when tied to prime, so your cost changes when prime moves. Enter your current contracted rate above to estimate monthly interest on today's balance.

This independent RBC LOC calculator does not pull live rates from RBC — you supply the annual percentage from your statement or online banking. That keeps the tool accurate for your account regardless of when prime last changed.

Minimum payments on revolving credit

Revolving LOCs require a minimum payment each month. Many products allow interest-only minimums while balances are low, which keeps cash flow flexible but does not reduce principal. Other structures require interest plus at least 1% of the outstanding balance (or a similar formula). Select the payment type that matches your RBC product disclosure — the calculator splits interest cost from principal repayment so you see how much of your payment actually pays down debt.

Paying only the minimum on a large balance maximizes interest over time. Use the annual interest figure as motivation to accelerate repayments when cash allows. Even modest fixed principal payments above the minimum save substantially on variable-rate debt when rates are elevated.

RBC line of credit rates vs other lenders

RBC line of credit rates compete with TD, BMO, Scotiabank and CIBC on secured HELOCs, and with credit unions on both secured and unsecured lines. Comparison should include the margin over prime, any annual fees, legal or appraisal costs on setup, and whether the limit is readvanceable as you pay down principal. A slightly higher rate with no fee may beat a lower rate plus $75 annual maintenance.

Secured lines backed by home equity usually offer the lowest rates but put your property at risk if you default. Unsecured personal LOCs trade higher rates for not tying to real estate. Model each facility separately if you hold both — this calculator handles one balance at a time.

When a LOC makes sense

Lines of credit suit irregular expenses: renovations, tuition, bridging between jobs, or investment opportunities with a clear exit. They are less ideal for long-term consumption you cannot repay quickly, because variable rates can rise and minimum payments may not force meaningful principal reduction. Pair this calculator with a payoff plan: decide a target balance date and work backward to required monthly principal payments.

This page is not sponsored by Royal Bank of Canada. Use it to understand RBC line of credit interest mechanics before speaking with an RBC advisor or comparing broker and credit union alternatives across Canada.

Tips before you apply