What is the OSAP Repayment Calculator?
OSAP is really two loans in one: a federal Canada Student Loan and an Ontario Student Loan. They behave differently. Since April 1, 2023, the federal portion charges no interest at all, while the Ontario portion carries interest at prime plus one percent, and that interest builds during your six-month grace period before the first payment is due. This calculator separates the two, builds a standard repayment schedule, and then compares it with an estimate of what the Repayment Assistance Plan (RAP) might ask of you instead.
It is written for recent graduates working out a budget, and for borrowers deciding whether it is worth applying for help.
Entering your loans
- Federal and Ontario balances. Your OSAP account and the National Student Loans Service Centre show the two amounts you owe. They are rarely equal.
- Ontario interest rate. Prime plus 1%. Prime was 4.45% on October 23, 2026 (the Bank of Canada’s policy rate was 2.25%), so the default is 5.45%. Enter the rate on your own loan statement if it has changed.
- Repayment term. The standard schedule is 9.5 years and can be stretched to as long as 14.5 years, which lowers the monthly payment but raises total interest.
- Family income and size. Used only for the RAP estimate. Family income is the household’s gross income, and family size counts you, a spouse or partner, and dependants.
- Your assigned RAP payment (optional). If you have already applied and been given an amount, enter it for a more accurate comparison.
How does the underlying math work?
The calculator first grows the Ontario balance for the six-month grace period. The Ontario portion accrues interest at prime plus 1% (this tool uses simple interest over the six months) and that interest is added to the loan before your first payment, so you start repayment owing more than you borrowed; the federal portion accrues nothing and stays exactly where it was. It then amortizes each portion separately over your chosen term. The federal part has no interest, so it is simply divided evenly. The Ontario part uses the standard loan payment formula, where L is the balance after grace-period interest, i the monthly rate and n the number of months:
RAP works differently. Your monthly income is compared with a threshold for your family size. Below it, you may owe nothing for a six-month period; above it, the payment is a share of income that, under the federal regulation, can never exceed 10% (Ontario’s own page says the affordable payment is never more than 20% of family income). During the first 60 months of RAP, governments cover any interest your payment does not; after that, they also cover principal so the debt is eliminated within 15 years of leaving school. Because the exact amount is set by the National Student Loans Service Centre, this tool shows an upper-bound estimate based on those caps and the published thresholds unless you enter your assigned payment.
Worked example: $12,000 federal plus $8,000 Ontario
Assume a 5.45% Ontario rate and the standard 9.5-year schedule (114 payments).
- Grace period: during the six months after you leave full-time studies, the Ontario balance grows from $8,000 to about $8,218 (about $218 of interest), while the federal $12,000 does not change. You start repayment owing about $20,218.
- Monthly payment: about $197.78 ($105.26 federal and $92.51 Ontario).
- Total interest: about $2,546 (all on the Ontario side), for a total repaid of about $22,546.
Stretch the term to 14.5 years and the payment falls to about $137.39, but total interest rises to about $3,906.
Now compare RAP. With a single borrower earning $34,000 (about $2,833 a month), income is under the federal threshold for a family of one ($3,866 a month) but above Ontario’s ($2,083 a month). So the federal portion may be $0 and the Ontario portion could require a payment. Capped at the standard Ontario payment of $92.51, the calculator estimates you might pay about $16,097 in total over the 174 months of repayment, versus $22,546 on the standard schedule, with about $4,121 of the balance covered by the governments. At $24,000 of family income, both portions fall under their thresholds and the estimate is $0. At $52,000, income is above both thresholds and the affordable payment would exceed the standard payment, so RAP would not reduce what you pay.
These RAP numbers are deliberately cautious ceilings. Your real payment is calculated by the loan service centre and may be lower.
The 2026/27 funding change: more loan, less grant
Announced changes, as of October 26, 2026. Check ontario.ca/page/osap for your exact assessment.
Ontario announced in February 2026 a change to how OSAP funding is divided between grants and loans, applying to programs that start on or after August 1, 2026. For new borrowers, grants are capped at 25% of funding, so at least 75% has to be repaid as loans, where a much larger share of the same aid could previously arrive as non-repayable grants. Students at private career colleges no longer receive OSAP grants, so their OSAP funding is entirely loans. Your assessed need is still based on need; what changes is how much of it you pay back.
The planner under the calculator shows the effect on repayment. Take a $10,000 one-year assessment, the 5.45% rate and the 9.5-year schedule, and assume 40% of the loans are Ontario loans (an illustrative split; your assessment shows the real one, and this tool assumes no interest accrues while you are studying full-time):
- 50% grant / 50% loan: $5,000 of loans, a payment of about $49.44 a month, about $637 of total interest.
- 25% grant / 75% loan: $7,500 of loans, about $74.17 a month, about $955 of interest.
- 0% grant / 100% loan (private career college): $10,000 of loans, about $98.89 a month, about $1,273 of interest.
The effect compounds over a program. A $10,000-a-year assessment over four years at 25% grant builds about $30,000 of loans and a payment near $296.66 a month, with about $3,820 of interest; at a 50/50 mix the same four years would leave $20,000 of loans and a payment near $197.78. The 50/50 row is an illustration of a more generous mix, not a statement of any individual’s earlier assessment.
Real-world practical application
The first use is budgeting: the payment line tells you what to set aside once your grace period ends. The second is the term decision: a longer schedule feels cheaper per month, but the table shows what it adds in interest. The third is the RAP decision. If your income is modest, the comparison shows whether applying could cut your payments substantially, and the tool reminds you that RAP must be renewed every six months. It also helps parents or partners understand how family income, not just your own, affects eligibility.
Limits and things to check
This is an estimate, not an OSAP statement. Interest on the Ontario portion follows prime, which changes; the payment is set from the rate on your first payment date and then stays fixed while the split between principal and interest shifts. The RAP rules include separate thresholds for the federal and Ontario portions, a six-month approval cycle, different treatment for borrowers with permanent disabilities (a shorter maximum period), and adjustments when a spouse also has student loans in repayment. The government pages publish thresholds that do not always match across sources, so confirm your figures with the National Student Loans Service Centre or OSAP before relying on them.
The figures on this page are for the 2026 year.
Frequently Asked Questions
Does the federal part of my OSAP charge interest?
No. The Government of Canada stopped charging interest on the federal portion of Canada Student Loans effective April 1, 2023. The Ontario portion still charges interest at prime plus 1%.
What happens during the six-month grace period?
You do not have to make payments for six months after you finish full-time studies, but the Ontario portion of your OSAP loans accrues interest (prime plus 1%) during that time, and the interest is added to the loan before repayment starts. The federal portion stays at 0%. This calculator therefore grows the Ontario balance for six months and starts repayment from the higher figure. It assumes no interest accrues while you are studying full-time.
How long can I take to repay OSAP?
The standard schedule is based on 9.5 years and can usually be extended to as long as 14.5 years. A longer schedule lowers the payment and raises the total interest on the Ontario portion.
Who qualifies for the Repayment Assistance Plan?
Borrowers in good standing who live in Canada and whose family income is low relative to their loan payments. You must re-apply every six months, and your payment depends on income and family size. Under RAP, interest not covered by your payment is paid by the government for up to 60 months, and the debt is eliminated within 15 years of leaving school (10 for borrowers with a permanent disability).
Did OSAP funding change for 2026/27?
Ontario announced changes in February 2026 for programs starting on or after August 1, 2026. For new borrowers, grants are capped at 25% of OSAP funding, so up to 75% must be repaid as loans, and students at private career colleges no longer receive OSAP grants. These are announced changes as of October 26, 2026, so check ontario.ca/page/osap for your exact assessment.
Is this the same in other provinces?
No. OSAP is Ontario’s program. Other provinces run their own student loans alongside the federal portion, with different rates and assistance, so their rules and thresholds differ.
Related calculators & guides
- Debt Snowball & Emergency Fund Calculator — plan student loans alongside other debts.
- Guide: debt snowball vs. avalanche — which debt to pay first when interest rates differ.
- Ontario Take-Home Pay Calculator — know your after-tax income before budgeting a payment.
- Debt Payoff Calculator — what an extra monthly payment saves on any loan.