Car loan calculator

Enter the car's price, your province, your trade-in and your interest rate to see your payment. We add your province's sales tax, and a trade-in at a dealer lowers it: a $10,000 trade-in saves $1,300 in Ontario and $1,497.50 in Quebec. Free, no sign-up.

Your payment

$687.21 per month

Amount financed: $33,900
Sales tax: $3,900
Number of payments: 60
Total interest: $7,332.45
Total cost: $41,232.45

Year by year

Year	Interest paid	Principal paid	Balance at year end
1	$2,501.24	$5,745.25	$28,154.75
2	$2,025	$6,221.49	$21,933.26
3	$1,509.29	$6,737.20	$15,196.06
4	$950.83	$7,295.66	$7,900.41
5	$346.08	$7,900.41	$0

How is a car loan payment calculated?

The amount you borrow is the price plus tax and fees, minus your trade-in and down payment. The lender spreads it over the term with interest. A longer term lowers each payment but costs more in total: $25,000 at 5% costs $1,974 in interest over 36 months and $4,681 over 84 months.

How is sales tax charged on a car in Canada?

At a dealer, you pay your province's sales tax on the price minus your trade-in, and it is usually added to the loan. From a private seller, you pay the tax yourself when you register the car, on the price or the car's book value, whichever is higher. The table shows each province.

Province	Tax at a dealer	Tax on a private purchase	Saved per $10,000 trade-in
Newfoundland and Labrador	15%	15%	$1,500
Nova Scotia	14%	14%	$1,400
Prince Edward Island	15%	15%	$1,500
New Brunswick	15%	15%	$1,500
Quebec	14.975%	9.975%	$1,497.50
Ontario	13%	13%	$1,300
Manitoba	12%	7%	$1,200
Saskatchewan	11%	6%	$1,100
Alberta	5%	0%	$500
British Columbia	12% (more above $55,000)	12% (more above $125,000)	$1,200
Northwest Territories	5%	0%	$500
Yukon	5%	0%	$500
Nunavut	5%	0%	$500

Monthly, bi-weekly or weekly payments?

Bi-weekly means 26 payments a year, which is slightly more than 12 monthly payments. You pay the loan down a little faster and pay a little less interest.

Frequently asked questions

What interest rate should I use?

Use the rate on your approval. In October 2026, Canada's big banks advertise car loans from about 7.2%, and lenders for weaker credit go up to 35%, the legal limit. With no quote yet, try 7% to 10%.

Is a longer loan term a good idea?

It lowers your payment but raises the total interest, and you can owe more than the car is worth for longer. Pick the shortest term whose payment fits your budget.

Do I pay tax on a used car from a private seller?

Yes, in most provinces you pay it when you register the car: 13% in Ontario, 9.975% QST in Quebec, 12% in British Columbia. Alberta and the territories charge none.

Can I roll what I still owe on my car into a new loan?

Yes, many dealers allow it, but it raises the amount you borrow and your interest. Enter what you owe on your trade-in and the calculator adds it.

Tax rules checked on October 6, 2026. Sources:

Estimates for information only, not tax or financial advice. Confirm the numbers with your dealer or lender.