Car Loan Calculator Canada
Enter the vehicle price, your down payment or trade-in, sales tax, interest rate and term to see your monthly car payment and total interest, with tax included.
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What will my car payment be?
Your car payment depends on the amount financed, the interest rate and the term. For example, a $35,000 car in Ontario with 13% HST and $5,000 down, financed at 6.99% for 72 months, costs about $589 a month and about $7,850 in interest. Enter your own numbers above to see your payment.
How to use the car loan calculator
This car loan calculator for Canada works out a monthly payment the way lenders do. It adds provincial sales tax to the price, subtracts your down payment or trade-in, then spreads the balance over the term at your interest rate.
Use it to check a dealer's quote, compare terms or see what a better rate is worth. If you have not chosen a car yet and want to know what price fits your income, start with our car affordability calculator instead.
- Vehicle price (before tax). The negotiated price, including freight, PDI and dealer fees you agreed to pay.
- Down payment or trade-in. Cash you put down plus the value of any trade-in, after any amount still owing on it.
- Sales tax (%). Your province's rate on vehicles. See the table below.
- Interest rate (%). The annual rate on your loan offer. Use 0 for a promotional zero-interest deal.
- Term (months). Common terms are 36, 48, 60, 72, 84 and 96 months.
The results show your monthly payment, the amount financed, the total interest and the total cost of the car including your down payment.
Sales tax on cars in each province
Sales tax on a car in Canada ranges from 5% in Alberta and the territories to 15% in the HST provinces of New Brunswick, Newfoundland and Labrador and Prince Edward Island. It is usually added to the loan, so you pay interest on it too.
| Province or territory | Sales tax on a dealer purchase |
|---|---|
| Alberta, Yukon, NWT, Nunavut | 5% GST |
| Saskatchewan | 11% (5% GST plus 6% PST) |
| Manitoba | 12% (5% GST plus 7% RST) |
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| Quebec | 14.975% (5% GST plus 9.975% QST) |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST |
| British Columbia | 5% GST plus PST of 7% to 20%, rising with price |
In many provinces, trading in a vehicle at a dealer means tax is charged only on the difference between the new price and the trade-in value. The calculator taxes the full price, so its payment is slightly conservative if you have a trade-in. Our GST/HST calculator shows the tax on any amount.
How does the loan term change my car payment?
A longer term lowers your monthly car payment but raises the total interest you pay. Stretching the example loan from 60 to 84 months cuts the payment by about $163 a month, yet adds about $2,750 in interest. Long terms also leave you owing more than the car is worth for longer.
| Term | Monthly payment | Total interest |
|---|---|---|
| 48 months | about $827 | about $5,160 |
| 60 months | about $684 | about $6,490 |
| 72 months | about $589 | about $7,850 |
| 84 months | about $521 | about $9,240 |
| 96 months | about $471 | about $10,650 |
Dealers often quote bi-weekly payments. A bi-weekly figure is roughly the monthly payment multiplied by 12 and divided by 26, so $589 a month is about $272 every two weeks.
Watch your debt shrink
- Track loans, cards and your mortgage as liabilities
- See what changed each month
- Budget an extra payment into every month
What interest rate will I get on a car loan?
Your car loan rate depends on your credit score, whether the car is new or used, the term and whether the manufacturer is offering a promotional rate. Buyers with strong credit on new cars get the lowest rates, while used cars and weaker credit cost more. Each rate step adds up.
Going from 6.99% to 11.99% on this loan adds about $86 a month and about $6,200 in interest over six years. Improving your credit before you shop can be worth more than haggling over the price. See our guide on how to improve your credit score in Canada.
Car loan vs lease and the full cost of owning a car
A loan payment is only part of what a car costs. Insurance, fuel or charging, maintenance, winter tires, registration and parking often add several hundred dollars a month. Our guide to the cost of owning a car breaks these down, and financing vs leasing a car in Canada compares the two ways to pay.
A useful rule of thumb is to keep all car costs under about 15% to 20% of take-home pay. If the payment alone takes more than 10%, consider a cheaper car, a bigger down payment or a shorter search for a better rate.
Tips before you sign a car loan
- Get pre-approved by your bank or credit union so you can compare the dealer's rate with a real alternative.
- Negotiate the price first, then the financing. Talking only about the monthly payment hides the total cost.
- Read the add-ons. Extended warranties, rust protection and gap insurance are often rolled into the loan and charged interest.
- Avoid rolling negative equity from an old loan into a new one. It raises your balance and your payment.
- Check for prepayment terms so you can pay the loan off early without a penalty.
Once you sign, add the payment as a recurring bill in EMOH Pay so it never catches you off guard, and set a savings goal for your next down payment. EMOH Pay is free to start on iPhone, Android and the web.
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Get started free➜Car Loan Calculator Canada: frequently asked questions
What is the monthly payment on a $30,000 car loan in Canada?
At 6.99% over 60 months, $30,000 financed costs about $594 a month. Over 72 months it is about $511. Add sales tax to the price first if it is being financed.
Is sales tax included in a car loan?
Usually yes. Most buyers finance the tax along with the car, which means paying interest on it. The calculator adds tax before working out the payment.
What is a good term for a car loan?
Shorter terms of 48 to 60 months cost less interest and help you avoid owing more than the car is worth. Terms of 84 or 96 months lower the payment but raise the total cost.
Should I make a bigger down payment?
A bigger down payment lowers both the payment and the total interest, and reduces the risk of negative equity. Keep enough cash for an emergency fund before you put everything down.
Does a car loan affect my credit score?
Yes. The application creates a hard inquiry, and the loan appears on your credit report. Paying on time every month helps build your credit history.
Sources and further reading
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