Car Loan Calculator Canada
Calculate your monthly car loan payments with Canadian province-specific taxes included.
We'll calculate accurate taxes and provide province-specific information
HST: 13.0%
Loan Details
Minimum 10% recommended for new cars, 20% for used
Get your car appraised at multiple dealerships
Canadian average: 6-8% for new cars, 8-12% for used
Common in Canada: 60-84 months
Sales Tax (ON)
13.00%
Automatically set based on your province
Typical in Canada: $300-$800
Monthly Payment
per month for 60 months
Total Loan Amount
$23,750
Total Interest
$3,142
13.2% of loan
Total Cost
$31,892
Payment Breakdown (First Year)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $448.19 | $349.23 | $98.96 | $23,401 |
| 2 | $448.19 | $350.69 | $97.50 | $23,050 |
| 3 | $448.19 | $352.15 | $96.04 | $22,698 |
| 4 | $448.19 | $353.62 | $94.57 | $22,344 |
| 5 | $448.19 | $355.09 | $93.10 | $21,989 |
| 6 | $448.19 | $356.57 | $91.62 | $21,633 |
| 7 | $448.19 | $358.06 | $90.14 | $21,275 |
| 8 | $448.19 | $359.55 | $88.64 | $20,915 |
| 9 | $448.19 | $361.05 | $87.15 | $20,554 |
| 10 | $448.19 | $362.55 | $85.64 | $20,191 |
| 11 | $448.19 | $364.06 | $84.13 | $19,827 |
| 12 | $448.19 | $365.58 | $82.61 | $19,462 |
Showing first 12 months of 60 total payments
Understanding Your Loan (Canadian Context)
Pre-Approval Benefits: Getting pre-approved from your bank or credit union before visiting dealerships gives you negotiating power and often better rates than dealer financing.
Canadian Auto Loan Rates: Big banks typically offer 6-8% for new cars, 8-12% for used. Credit unions often have better rates. Online lenders like Fairstone or Canada Drives can be alternatives.
Down Payment Advice: In Canada, aim for 20% down on used cars and 10% on new cars to avoid being upside-down on your loan.
AMVIC (Alberta) / OMVIC (Ontario): These regulatory bodies protect car buyers. Check if your province has similar consumer protection.
Understanding Auto Loans
Monthly Payment: The amount you'll pay each month to repay your loan. This includes both principal (the loan amount) and interest.
APR (Annual Percentage Rate): The yearly interest rate on your loan. A lower APR means you'll pay less in interest over time.
Loan Term: The length of time you have to repay the loan. Longer terms mean lower monthly payments but more total interest paid.
Down Payment: Money you pay upfront. A larger down payment reduces the amount you need to borrow and can help you get better loan terms.
Frequently Asked Questions
How do I calculate my monthly car loan payment in Canada?
To calculate your monthly car loan payment, enter the vehicle price, down payment, interest rate (APR), and loan term into our calculator. The calculator automatically adds your province's taxes (HST, GST, or PST) to give you an accurate monthly payment.
What is a good interest rate for a car loan in Canada?
In Canada, a good car loan interest rate typically ranges from 4% to 7% for buyers with good credit. New cars often have lower rates (sometimes 0% promotional rates), while used cars typically have rates between 6% and 10%.
How much should I put down on a car in Canada?
Financial experts recommend putting down at least 10-20% of the vehicle price. A larger down payment reduces your monthly payments, lowers the total interest paid, and helps you avoid being "underwater" on your loan.
What loan term should I choose for my car?
Most experts recommend a loan term of 48-60 months (4-5 years). Longer terms (72-84 months) have lower monthly payments but result in paying significantly more interest over the life of the loan.