Canadian Car Loan Calculator

Car Payment Calculator

Vehicle Price: Enter the purchase price of the vehicle before tax.

Trade-in Value: The estimated value of your current vehicle. Tax is calculated on the net price (vehicle price minus trade-in) in most Canadian provinces.

Trade-in Loan Balance: If you still owe money on your trade-in, enter the outstanding balance — this is added to the amount financed.

Down Payment: Upfront cash that reduces the amount you need to borrow.

Loan Term: Slide to select your term from 24 to 96 months.

Total Tax: Enter your province's combined tax rate (e.g. 13% for Ontario HST, 12% for BC, 5% for Alberta).

Interest Rate: The annual percentage rate (APR) you expect to qualify for.

Car Affordability Calculator

Monthly Budget: The maximum payment you can comfortably make each month. A common guideline is 10–15% of gross monthly income.

APR: Canadian auto loan rates typically range from 5%–12% depending on credit score and lender.

Down Payment & Trade-in: Both reduce the amount financed and increase your maximum car price.

Provincial Tax: Use the +/− buttons to set your province's combined tax rate.

• Keep total car costs under 20% of gross income: This includes your monthly payment, insurance, fuel, and maintenance. Most Canadian financial advisors use this as the benchmark.
• Bi-weekly payments save money: Paying bi-weekly (26 payments/year) instead of monthly (12 payments/year) effectively makes one extra monthly payment per year, reducing total interest paid.
• Longer terms cost more in interest: A 96-month loan lowers your monthly payment but you'll pay significantly more interest over the life of the loan. Use the payment calculator to compare terms side by side.
• Provincial taxes vary significantly: Ontario charges 13% HST, British Columbia 12% (PST + GST), and Alberta has no provincial sales tax — only 5% GST. This can change the amount financed by thousands of dollars.
• Trade-in tax advantage: In most Canadian provinces, sales tax is calculated on the net price (vehicle price minus trade-in value), reducing the taxable amount. This makes trading in more advantageous than selling privately in some cases.
• Budget for insurance: Auto insurance in Canada typically costs $1,500–$3,000+ per year depending on province, vehicle, and driving history — add this to your monthly budget before submitting.

What is a good interest rate for a car loan in Canada?
In 2024–2025, average Canadian auto loan rates range from 5.99%–9.99% for buyers with good credit (700+). Buyers with excellent credit (750+) may qualify for manufacturer promotional rates as low as 0%–2.99%.

How much should I put down on a car in Canada?
A 10–20% down payment is recommended. This reduces your financed amount, lowers your monthly payment, and helps avoid being "underwater" on the loan (owing more than the car is worth).

What is the maximum car loan term in Canada?
Most Canadian lenders offer terms up to 84–96 months. While longer terms lower monthly payments, they increase total interest paid and the risk of negative equity as the vehicle depreciates.

How does a trade-in affect my car loan in Canada?
Your trade-in value is subtracted from the vehicle price before tax is applied (in most provinces), reducing both your taxable amount and the amount financed — often saving more than a cash down payment of the same value.