Loans · Canada
Auto loan calculator.
Estimate your monthly car payment with sales tax, trade-in value, and down payment factored in. Compare term lengths to see how they affect interest and total cost.
A car loan payment depends on the amount financed (price plus sales tax, less down payment and trade-in), the interest rate and the term. This calculator shows the payment and total interest for each term so you can compare them.
Method: a standard formula, shown on this page. No government rate or table is used.
Cite this page: TNAADO Tools, “Auto Loan Calculator”, https://tools.tnaado.ca/calculators/loans/auto/
Inputs
Your payment
Fill the form and press Calculate.
How the auto loan calculator works
This calculator estimates your monthly car payment by combining the vehicle price, sales tax, down payment, trade-in value, interest rate, and loan term. Understanding these costs upfront helps you budget better and negotiate confidently with dealerships.
Understanding auto loan costs
Amount financed: Vehicle price + sales tax − down payment − trade-in value. This is the actual amount borrowed from the lender.
Sales tax in Canada: PST/HST/GST rates vary by province:
- Ontario: 13% HST
- British Columbia: 12% (7% PST + 5% GST)
- Alberta: 5% GST only
- Quebec: 14.975% (9.975% QST + 5% GST)
- New Brunswick, PEI, Newfoundland: 15% HST · Nova Scotia: 14% HST
Sales tax is typically calculated on the purchase price after the trade-in value is deducted in most provinces.
Tips for the best auto loan
- Shop around: compare banks, credit unions, and dealership financing.
- Larger down payment: reduces the amount financed and total interest paid.
- Shorter terms: higher monthly payments but significantly less interest.
- Check your credit score: better scores qualify for lower rates.
- Get pre-approved: knowing your rate helps you negotiate.
Worked example: a $35,000 car at 6.99% over 60 months
A $35,000 vehicle in Ontario carries 13% HST of $4,550. With $5,000 down, the amount financed is $35,000 + $4,550 − $5,000 = $34,550. At 6.99% over 60 months the calculator returns a payment of $683.97, total interest of $6,488 and a total cost (price, tax and interest) of $46,038.
| Term | Monthly payment | Total interest | Total cost |
|---|---|---|---|
| 48 months | $827.18 | $5,155 | $44,705 |
| 60 months | $683.97 | $6,488 | $46,038 |
| 72 months | $588.88 | $7,849 | $47,399 |
| 84 months | $521.28 | $9,238 | $48,788 |
- Longer loans cost more. Stretching from 60 to 84 months lowers the payment by $162.69 but adds $2,750 of interest.
- Sales tax is part of what you borrow. At 13% it adds $4,550 to the financed amount; with a 5% GST-only rate (as in Alberta) the same car finances $31,750 and the payment is $628.54.
- Watch the car’s value. The FCAC says a new car may be worth 25% less after one year and typically loses 15% to 25% of its value each year over the next four, so a long loan can leave you owing more than the car is worth.
Next steps: compare a bank loan with the personal loan calculator, see what extra payments save with the early payoff calculator, or check your budget with the paycheque calculator.
How this is calculated
- Sales tax = (vehicle price − trade-in) × sales tax rate.
- Amount financed = price + sales tax − down payment − trade-in.
- Monthly payment = L × i ÷ (1 − (1 + i)−n), with i = annual rate ÷ 12 and n = months.
- Total interest = payment × n − amount financed; total cost = price + sales tax + interest.
The calculator uses a simple monthly rate (the annual rate divided by 12), the common approach for instalment loans, so a lender’s figure can differ by a few dollars. Fees (documentation, registration, licensing), insurance and add-ons are not included. The FCAC’s page on the financial risks of buying a car covers depreciation, negative equity and long-term loans (FCAC, Financial risks when buying a car, checked 1 October 2026), and the 35% ceiling on the cost of credit is in section 347 of the Criminal Code. Sales tax rates by province are listed on this page as the calculator’s own reference and should be confirmed for your purchase.
General information, not financial advice. Your lender’s disclosure statement shows the real cost of borrowing.
Frequently asked questions
How is a car loan payment calculated?
Sales tax is added to the price, then the down payment and trade-in are subtracted to get the amount financed. The payment is the standard instalment formula on that amount at your rate over the number of months. On a $34,550 loan at 6.99% over 60 months it is $683.97.
Is a longer loan term a good idea?
It lowers the payment and raises the cost. The same $34,550 costs $9,238 in interest over 84 months and $5,155 over 48. Longer loans also raise the risk of negative equity as the car depreciates.
What is negative equity?
The FCAC defines it as owing more on your car loan than the car is worth. Cars lose value quickly (the FCAC says a new car may be worth 25% less after one year), so a small down payment and a long term make it more likely.
Does the calculator include sales tax?
Yes, at the rate you enter, charged on the price after the trade-in, and added to the financed amount. Use your province’s combined GST/HST/PST rate; for example 5% for GST only or 13% for Ontario HST.
What else should I budget for besides the payment?
Insurance, fuel, maintenance, registration and any dealer fees, none of which are in this calculator. Add them to the monthly payment to see what the car really costs.
Is there a limit on car loan interest rates?
Yes. The Criminal Code sets a criminal interest rate of 35% annual percentage rate, counting all fees and charges, so a lender cannot lawfully charge above it.
Disclaimer
This calculator provides estimates for educational and informational purposes only. Actual auto loan payments may vary based on lender policies, credit score, vehicle type, additional fees, and other factors not included in this calculation. Provincial sales tax rules may vary, especially regarding trade-in deductions. Verify the exact calculation with your dealership or provincial authority.