Loans · car
Car Affordability Calculator
The car price you can afford, after insurance, gas, sales tax and the loan.
1Your budget
2Your loan
How much car can I afford?
A common guideline: keep the total cost of a car, meaning the loan payment plus insurance, gas and maintenance, at 10% to 15% of your take-home pay. Insurance in Canada is high, especially in Ontario and BC, so price it before you shop.
Shorter loans cost less interest. Terms of 72 to 96 months lower the payment but leave you owing more than the car is worth for years. Found a car? Get the exact payment with the car loan calculator.
Frequently asked questions
How much should I spend on a car in Canada?
Many advisers suggest keeping everything car-related at 10% to 15% of take-home pay, and the price of the car at no more than about half your yearly income.
Is sales tax included in a car loan?
Usually yes: GST/HST (or GST plus PST) is added to the price and financed with the car, so it raises your payment.
What is a good car loan length?
60 months or less is a good target. Longer loans cut the payment but add interest and leave you owing more than the car is worth.
Should I include insurance in my car budget?
Yes. In many provinces insurance costs more each month than a small car payment.
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