Short answer: for a $35,000 vehicle in Ontario (13% HST), with $5,000 down, a 6.99% interest rate and a 72-month term, the monthly payment is about $589 and the total interest is roughly $7,850. Use the calculator below to test your own price, tax rate, trade-in, down payment, rate and term. It shows the amount financed, the payment and the full cost of borrowing.
Car loan calculator
The calculation runs entirely in your browser. Nothing you enter is sent or saved. Results are estimates and do not replace an offer from a lender or dealer, or the advice of a financial professional.
How the calculator works
Car loans in Canada are usually quoted as an annual rate with monthly compounding. The calculator follows four steps:
- Taxable amount: vehicle price minus trade-in value. In many provinces, the trade-in reduces the amount subject to sales tax, but rules differ, so check yours.
- Total price: taxable amount multiplied by (1 + tax rate).
- Amount financed: total price minus your cash down payment.
- Payment: PMT = L × i / (1 − (1 + i)−N), where L is the amount financed, i the rate per payment period and N the number of payments.
Worked example
A buyer in Ontario chooses a $35,000 vehicle, has no trade-in and puts $5,000 down. With 13% HST, the price becomes $39,550. Subtract the $5,000 down payment and the amount financed is $34,550. At 6.99% per year, the monthly rate is 0.5825%. Over 72 months, the payment comes to about $589. The buyer pays about $42,400 in total on the loan, of which roughly $7,850 is interest.
Shorten the term to 60 months in the calculator and the payment rises, but the interest falls noticeably. Stretch it to 84 or 96 months and the opposite happens.
Sales tax on vehicles by province
Enter the combined rate that applies where you register the vehicle. Common examples for new vehicles bought from a dealer:
| Province | Typical combined rate |
|---|---|
| Ontario | 13% HST |
| Quebec | 14.975% (GST + QST) |
| Alberta | 5% GST |
| Nova Scotia, New Brunswick, Newfoundland and Labrador, PEI | HST, check current rate |
| British Columbia, Manitoba, Saskatchewan | GST + provincial tax, with vehicle-specific rules |
Private sales, used vehicles and luxury vehicles can be taxed differently. The federal government also applies a luxury tax on certain new vehicles above a price threshold. Confirm the rules with the Canada Revenue Agency and your province before you sign.
Tips to lower the cost of a car loan
- Compare the total cost, not the payment. Dealers often focus on the bi-weekly amount; a long term can hide thousands in interest.
- Get pre-approved with your bank or credit union so you can compare it with dealer financing.
- Watch for add-ons such as extended warranties, rust protection or insurance products rolled into the loan, since you pay interest on them too.
- Avoid negative equity. Long terms mean you may owe more than the car is worth for years, which is a problem if you sell or trade it early.
- Check for incentives on electric vehicles: our explainer on the EV Affordability Program covers who qualifies.
Buying or selling used
If you are selling your current car instead of trading it in, you may get a better price, but you lose any trade-in tax benefit your province offers. Our step-by-step guide on how to sell your car privately in Canada helps you weigh both options. And if you shop online, read our tips on spotting online shopping scams before sending any deposit. For more on why tools like this one matter, see how online calculators are changing financial education.
FAQ
Is a 96-month car loan a good idea?
It lowers the payment but increases the total interest and the risk of owing more than the vehicle is worth. Use the shortest term your budget allows.
Do bi-weekly payments save money?
Bi-weekly payments over the same term cost about the same as monthly ones. They help mainly if they match your pay schedule.
Is sales tax included in the loan?
Usually yes, unless you pay it upfront. The calculator includes it in the amount financed.
Why is the dealer's payment different?
Dealers may add fees, freight, levies or optional products, or calculate interest daily. Ask for a full breakdown of the amount financed.