Loans · Calculator
Auto loan calculator
See your monthly car payment and the real total cost — price plus tax and interest, after your down payment and trade-in. Adjust the term to see what stretching the loan really costs.
The deal
Monthly payment
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Sales tax
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Total interest
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Total cost of the car
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Frequently asked questions
How is a car loan payment calculated?
The amount you finance is the vehicle price plus sales tax, minus your down payment and trade-in. That amount is then amortized over the term at your interest rate using the standard loan formula. A longer term lowers the monthly payment but adds interest; a bigger down payment cuts both the payment and the total cost.
Does a trade-in reduce the sales tax I pay?
In most provinces, yes — including Ontario, Alberta, BC and the Atlantic provinces, sales tax is charged on the price after the trade-in credit, so a trade-in lowers both the financed amount and the tax. Quebec, Saskatchewan and Manitoba treat trade-ins differently. This calculator applies tax to the price minus the trade-in; adjust the tax rate to match your province, and confirm the rule locally.
What term should I choose for a car loan?
The shortest you can comfortably afford. Stretching to 84 or 96 months drops the monthly payment but you’ll pay far more interest and risk being “underwater” — owing more than the car is worth — for years. A common guideline is to keep the term to 60 months or less, and to put at least 10–20% down.
Should I finance through the dealer or my bank?
Compare both. Dealer financing is convenient and sometimes offers promotional low or 0% rates (usually in place of a cash rebate — do the math on which is worth more). A bank, credit union or online lender may beat the dealer’s standard rate, especially if your credit is strong. Get a pre-approval before you shop so you know your real rate.
Educational tool, not financial advice. It assumes a fixed rate and equal monthly payments and applies tax to the price after the trade-in (the rule in most provinces; QC/SK/MB differ — set the tax rate to match yours). Your lender’s actual schedule, fees and any rounding may differ. Confirm on the loan agreement before signing.