Canada Car loan calculator
Estimate your monthly car payment, total interest, and out-the-door cost — with down payment, trade-in, and optional purchase tax.
Car & loan details
Out-the-door cost includes your down payment, trade-in value, and every loan payment. It excludes registration, insurance, and dealer fees.
Understanding your inputs
- Vehicle price
- The agreed price of the car before tax, trade-in, or deposit.
- Down payment
- Cash you put toward the car, reducing the amount financed.
- Trade-in value
- Credit for your old vehicle, which also lowers the amount borrowed.
- Interest rate (APR)
- The annual rate on the loan; car-loan interest is front-loaded into early payments.
- Term (months)
- How long you'll repay; a longer term cuts the monthly payment but adds interest.
- Purchase tax rate
- Any sales/registration tax applied to the purchase, where applicable.
Understanding your results
- Monthly payment
- What you'll pay each month over the loan term.
- Amount financed
- The loan size after your down payment and trade-in.
- Total interest
- The interest paid across the whole loan, on top of the amount financed.
- Out-the-door cost
- The all-in cost including your down payment, financed amount, interest, and tax.
Common scenarios
Jump straight to a pre-calculated answer for a typical scenario.
How car loans work in Canada
A Canadian car loan is a fixed-rate, amortizing loan from a dealer, bank, or credit union. Your monthly payment is set by the amount financed, the interest rate, and the term — though many Canadian dealers quote and bill bi-weekly, which this calculator approximates via the monthly figure.
Amount financed = price + GST/HST/PST − down payment − trade-in
Sales tax on vehicles
Tax on a car purchase depends on the province. In HST provinces (e.g. 13% Ontario) the harmonized rate applies; in others you pay 5% GST plus provincial sales tax. Several provinces give a trade-in tax credit — you're taxed on the price after the trade-in is deducted — though the rules vary, and private (non-dealer) sales can be taxed differently. The tax is usually financed along with the car.
Terms and rates
Terms of 60–84 months are common, occasionally up to 96. Longer terms reduce the payment but increase total interest and the time spent owing more than the car is worth. Compare the dealer's rate against a bank or credit union, and watch for promotional rates offered instead of a cash incentive.
What this calculator doesn't cover
- Province-specific trade-in tax credit rules and private-sale tax
- Bi-weekly vs. monthly payment scheduling differences
- Licensing, registration, and dealer admin fees
- Manufacturer rebates vs. low-rate financing trade-offs
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Frequently asked questions
How is a car loan payment calculated?
Does a bigger down payment reduce the cost?
Should I include sales tax in the loan?
What is APR and why does it matter?
Is a longer loan term cheaper?
Does this include insurance and running costs?
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