Estimate your monthly car loan payment, including sales tax, fees, and total interest.
Rates as of Q2 2025 (example)
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An auto loan calculator estimates your monthly car payment, including the sales tax charged on the vehicle purchase, registration and other fees, and total interest over the loan term — giving you a realistic picture of the full cost of financing a vehicle in Canada, not just the price tag.
Sales tax is calculated on the vehicle price minus any trade-in value (since most provinces only tax the net amount when trading in a vehicle at the same dealer), then added to the loan amount along with registration fees, minus your down payment. The standard amortizing loan formula is then applied to find your monthly payment.
Formula: Taxable Amount = Vehicle Price − Trade-in Value. Sales Tax = Taxable Amount × Sales Tax Rate. Loan Amount = Vehicle Price − Down Payment − Trade-in Value + Sales Tax + Fees. Monthly Payment = Loan Amount × [r(1+r)n] ÷ [(1+r)n − 1], where r is the monthly interest rate (Annual Rate ÷ 12 ÷ 100) and n is the number of monthly payments (Loan Term × 12).
Example: A CA$35,000 vehicle with a CA$5,000 down payment, no trade-in, a 13% sales tax rate (example — Ontario's HST rate; check your province's rate), and CA$500 in fees gives a sales tax of CA$4,550 and a loan amount of CA$35,050. At a 7% interest rate (example rate — enter your actual rate) over 5 years, the monthly payment would be roughly CA$694.03, with total interest of about CA$6,592 over the full term. (Note: all figures in this example are for illustration purposes only and do not represent a loan offer.)
Sales tax on vehicle purchases varies significantly by province — some provinces charge a single Harmonized Sales Tax (HST) combining federal and provincial portions (commonly 13-15%), while others charge GST (a federal 5% rate) plus a separate provincial sales tax (PST) at a rate set by that province, and a few apply only GST. If you're trading in a vehicle as part of the purchase at the same dealer, many provinces calculate sales tax only on the difference between the new vehicle's price and your trade-in value — this can result in a meaningful tax saving compared to selling your old vehicle privately and buying the new one separately (where tax would apply to the full purchase price). Auto loan terms in Canada commonly range from 1 to 7 or even 8 years — while longer terms reduce the monthly payment, they also mean paying interest for longer and can increase the risk of owing more than the vehicle is worth (since vehicles depreciate, often quickly in the first few years). Be sure to check whether your loan has any prepayment penalties before relying on the extra payment feature to pay off the loan faster.
Sales tax in Canada combines a federal component (GST, generally 5%) with a provincial component that varies by province. Some provinces have harmonized these into a single HST rate (commonly 13-15%), while others charge GST plus a separate provincial sales tax (PST) at their own rate, and some apply only GST. Always check the current rate for your specific province.
In many provinces, yes - if you trade in a vehicle as part of the purchase at the same dealer, sales tax is often calculated only on the difference between the new vehicle's price and your trade-in value, rather than the full price. This can be a meaningful saving compared to selling your old vehicle privately. Rules can vary by province, so check your specific situation.
A longer loan term reduces your monthly payment but increases the total interest paid over the life of the loan, since interest accrues on the outstanding balance for longer. A shorter term increases the monthly payment but reduces total interest - try comparing different terms to see this trade-off for your loan amount.
This is a general placeholder for one-time costs associated with the purchase, such as vehicle registration, licensing, documentation fees, or dealer administration fees. These vary by province and dealer - check your specific quote for the exact fees that apply, and enter the total here.
Often, yes, but check your loan agreement first - some auto loans include prepayment penalties or interest-rate adjustments for early payoff, particularly loans with very low advertised rates that may be subsidized by the manufacturer or dealer. If your loan allows penalty-free prepayment, the extra monthly payment feature can show how much you could save in interest.
It depends on your priorities. Financing means you'll own the vehicle outright once the loan is paid off, but typically has higher monthly payments than leasing for a comparable vehicle. Leasing often has lower monthly payments but you don't build equity, and you'll typically face mileage limits and potential fees at lease-end. See our Auto Lease Calculator to compare the costs of leasing for the same vehicle.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a loan offer or financial advice. The default interest rate and sales tax rate are sample values and do not reflect rates currently available from any specific lender or your specific province. Sales tax rules for trade-ins, registration fees, and loan terms vary by province, lender, and dealer. Always obtain a personalised quote from a lender or dealer before making borrowing decisions.