How to use the Car Loan Calculator
- 1 Enter the vehicle price, down payment and any trade-in.
- 2 Enter the interest rate and choose the term in months.
- 3 Choose monthly or biweekly payments and your province.
- 4 Read the payment, the amount financed and the total interest.
Worked example
A $40,000 car in Ontario with $5,000 down over 72 months at 7.49%. HST is $40,000 × 13% = $5,200, so the amount financed is $40,000 + $5,200 − $5,000 = $40,200. The monthly payment is about $694.87, with roughly $9,830 of interest over six years.
Features
Provincial sales tax
GST, HST or GST plus PST or QST for all 13 provinces and territories, using CRA rates.
Trade-in tax credit
Tax is charged on the price after the trade-in, which saves sales tax in most provinces.
Biweekly option
See the payment every two weeks, as many Canadian lenders offer.
When to use it
Dealer financing
Compare a dealer's rate and term with your bank's offer.
Long terms
See how 84 and 96-month loans lower the payment but raise interest.
Trade-in value
See how much a trade-in reduces the loan and the tax.
Moving provinces
Compare the tax on the same car in Alberta and Ontario.
Frequently asked questions
How is sales tax charged on a car?
At your province's GST or HST rate, or GST plus PST, on the price after the trade-in value in most provinces. Used cars sold privately are taxed differently in some provinces.
Are 84 or 96-month loans a good idea?
They lower the payment but cost much more interest, and you may owe more than the car is worth for years.
Does this include fees?
No. Dealer fees, licensing and extended warranties can add to the amount financed.
What rate should I use?
Use a quote from your bank, credit union or dealer. Promotional rates may require giving up a cash rebate.
Monthly or biweekly?
Biweekly payments are about half a monthly payment, made 26 times a year, which pays the loan down slightly faster.
Can I pay the loan off early?
Most car loans in Canada can be paid early, but check for any prepayment charges in the contract.
Should I lease or finance?
Financing builds ownership, while leasing usually has lower payments but mileage limits and no equity at the end. Compare the total cost over the time you plan to keep the car.
What credit score do I need?
Lenders offer their best rates to borrowers with good credit, often 700 or higher. Lower scores usually mean higher interest rates or a larger down payment.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated