Auto Loan Calculator

What It Does

Estimate your monthly car payment including interest and all purchase costs. Enter the vehicle sale price, down payment, trade-in value, cash incentives, sales tax rate, fees, loan term, and interest rate. The calculator shows the monthly payment, total interest, total repayment, and a detailed cost breakdown including sales tax and fees. It also generates a full amortization schedule. Use it to compare different financing options — see how a larger down payment, trade-in, cash rebates, or shorter loan term affect your monthly payment and total vehicle cost.

Real-World Usage

Use before visiting a dealership to know what payment fits your budget. Compare financing offers from banks, credit unions, and dealer financing — credit unions often have the best rates. See how a larger down payment reduces your monthly cost and total interest. Use it to decide between buying new vs used (new has lower rates but higher price). Check whether the dealer's 0% financing is better than the cash rebate — the calculator helps compare the total cost.

Local Context

Canadian auto loans: 3-7 years, rates 5-9% for new cars, higher for used. Dealership financing through manufacturer lenders competes with bank loans and credit unions. Most provinces regulate auto lease disclosures. GST/HST applies to car purchases. Your credit score directly affects your rate. Canadian dealers often offer 0-2% manufacturer rates on select models.

Dealer Financing vs Direct Lending

Dealerships usually arrange your loan through banks, finance companies or their own lending arm, and they are paid a commission for it — which means the rate you are quoted can carry a markup. Direct lending skips the middleman: you apply to a bank, credit union or online lender yourself and the quoted rate is the rate you pay. The practical move is to get a written quote from your own bank before you visit the dealership. That pre-approval sets a benchmark — if the dealer cannot beat it, use the outside loan. Compare APRs, not just interest rates, since fees are included in the APR, and keep the term length identical when you compare.

Vehicle Rebates and Incentives

Cash rebates come from the manufacturer, not the dealership, so every buyer qualifies for the same amount — a rebate is never a personal favor from the salesperson. The main fork in the road: promotional financing (such as 0% APR) and a large cash rebate are usually alternatives, so run both through this calculator before deciding. Because the money is manufacturer-funded, financing the car elsewhere does not cost you the rebate; if a discount only appears when you accept the dealer's financing, treat it as a financing condition, not a rebate. Ask for the out-the-door price in writing with each incentive itemized, and check the manufacturer's website for current offers before you visit.

Trade-In Value Tips

Your trade-in is a separate deal from the car you are buying — negotiate the two apart, or a low trade-in offer can disappear inside a large discount on the new car. Before you go, collect at least one written purchase offer from an online buying service or another dealer and compare it with the private-sale price: selling privately usually nets more, but takes longer and comes with paperwork. Clean the car, gather the service history, and bring both to the appointment. If you still owe money on the trade-in, watch out for negative equity: the payoff is subtracted from its value, and any shortfall is added to the new loan, where it collects interest of its own.

What is the average car loan rate in Canada?

New car loan rates in Canada typically range from 4-8%, while used car rates are higher at 6-12%. Rates vary by province, credit score, and whether the car is new or used.

Should I finance through a dealership or bank?

Banks and credit unions often offer better rates than dealership financing. However, dealerships may offer promotional rates (0-2%) on new cars. Always compare both offers before signing.

Should I take a longer or a shorter car loan term?

A longer term lowers the monthly payment but raises the total interest, because you pay interest over more periods. A shorter term costs more each month and less overall. Compare both in the term field before you sign: the total interest row shows the difference in the currency on this page.