Compare the monthly payment and total interest of financing a heat pump, furnace or boiler through a contractor plan, personal loan or line of credit.
Use this calculator to put a price on spreading the cost of new heating equipment: a contractor's financing plan, a personal loan, a line of credit, a utility or municipal retrofit loan, or an amount added to a mortgage at renewal. Enter the amount after any cash deposit, the annual rate on the offer and the term.
Formula: a standard level-payment loan with monthly compounding; total paid = all monthly payments + any setup fee.
Worked example (illustrative): $14,000 at 8.99% over 7 years gives a monthly payment of about $225 and total interest of about $4,900. At an illustrative 0% promotional rate with a $395 admin fee, the total paid is $14,395. The same $14,000 at an illustrative 14.99% over 10 years costs about $226 a month, almost the same payment, but about $13,100 in interest.
Limits: this treats every option as a simple instalment loan. Lines of credit are usually variable-rate with interest-only minimums, and some promotional plans charge deferred interest if the balance is not cleared on time. A rental or lease is not a loan: the payments never end and you do not own the equipment, so compare it separately using the rental contract guide and the financing guide.
Worked Quotes and Choosing a System
Compare contractor payment plans, personal loans, lines of credit, municipal retrofit loans and mortgage options for HVAC in Canada, with worked costs and the traps to read for.
Contract Traps, Failures and Official Sources
How water heater and HVAC rental contracts work in Ontario, the true cost of renting versus buying, buy-out and removal fees, and the consumer law that protects you.
