Car Loan Calculator

How to use the car loan calculator

1. Enter the Vehicle price agreed with the dealer, before tax.
2. Enter the Trade-in value of your current vehicle, if any, and what is Still owed on the trade-in (leave it empty if it is paid off).
3. Enter your Down payment in cash.
4. Add the Fees (admin, registration…) that will be financed, and tick or untick Sales tax applies to the fees.
5. Choose your Province or territory (sales tax), or No sales tax.
6. Enter the Interest rate (APR %), pick the Loan term in months and the Payment frequency (Monthly, Bi-weekly or Weekly).

The results update as you type: the Payment, the Amount financed, the Sales tax, the Total interest, the number of Payments, and the Total cost of the vehicle. How it was calculated shows each step, including every tax line.

How the payment is calculated

In most provinces, the dealer charges sales tax on the price minus the trade-in, so a trade-in saves you tax as well as cash. This tool applies the general rates of your province to that amount (and to the fees when they are taxable):

• taxable amount = price − trade-in (+ taxable fees), never below zero
• amount financed = price − trade-in + amount still owed + taxes + fees − down payment
• payment P = A × i / (1 − (1 + i)^−n), where A is the amount financed, i = APR / payments per year, and n = months / 12 × payments per year.

Example with the default values in Ontario: a $35,000 car, a $5,000 trade-in, $3,000 down and $500 of taxable fees. HST at 13% on $30,500 is $3,965, so $31,465 is financed. At 6.99% over 60 months, the payment is $622.90, the interest is $5,908.71, and the vehicle costs $45,373.71 in total (price, tax, fees and interest). In Quebec, GST (5%) and QST (9.975%) are calculated separately on the same amount.

Sales tax on vehicles: rules vary by province

The rates come from the same table as the Canadian sales tax calculator (GST, HST, PST, RST and QST, checked in September 2026). Vehicle purchases have extra rules that this tool does not model, for example:

• British Columbia charges a higher PST on more expensive passenger vehicles (from 7% up to 20%).
• In several provinces, a used vehicle bought from a private seller pays provincial tax only (no GST), sometimes on a minimum or wholesale value.
• Some provinces offer rebates or exemptions (electric vehicles, vehicles for people with disabilities, transfers within a family).

Check the final bill of sale or your provincial tax authority for the exact amount.

Negative equity and loan length

If you owe more on your trade-in than it is worth, the difference is added to the new loan. Enter both the Trade-in value and the amount Still owed on the trade-in to see the effect. Longer terms (84 or 96 months) lower the payment but raise the total interest, and can leave you owing more than the car is worth for years.