Finance Calculators
Auto Loan Calculator
Estimate your monthly car payment. Enter the loan amount, term in years, and annual interest rate to see your payment and total costs.
How It Works
Monthly Payment = P Γ [r(1+r)^n] Γ· [(1+r)^n β 1], where P = loan amount, r = monthly rate, n = months.
About This 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 β see how a larger down payment, trade-in, cash rebates, or shorter loan term affect your monthly payment and total vehicle cost.
Worked Example
Example 1 β Standard: A CA$35,000 car with CA$7,000 down (20%) and CA$1,000 trade-in. Loan amount = CA$27,000. At 5.5% over 5 years: monthly payment β CA$516. Total interest β CA$3,940. Example 2 β Shorter term: Same CA$27,000 loan at 5.5% over 3 years: monthly β CA$815. Total interest β CA$2,350. Saving CA$1,590. Example 3 β Cash incentives: A CA$35,000 car with CA$2,000 rebate, CA$7,000 down. Loan = CA$26,000. At 5.5%: monthly β CA$497. Total interest β CA$3,790.
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 β 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 β 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.
Last reviewed: March 2026.
This is an estimate only. Actual rates, terms, and tax rates depend on your location, credit score, lender, and vehicle type. Sales tax and fees are estimates β verify with your dealer and local tax authority.
Frequently Asked Questions
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.