Car Loan Calculator Canada
Your real monthly payment — including down payment, trade-in, and provincial sales tax. Updated for 2026 rates.
Your Monthly Payment
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$0 bi-weekly
Amount Financed
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Total Interest
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Total Cost of Car
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How Car Financing Works in Canada
When you finance a car in Canada, your monthly payment depends on five things: the vehicle price, your down payment and trade-in, the interest rate (APR), the loan term, and your province's sales tax. Sales tax is charged on the price after your trade-in credit in most provinces — one of the biggest hidden savings of trading in your vehicle.
Longer terms (72–96 months) lower the monthly payment but dramatically increase total interest — and increase the risk of owing more than the car is worth (negative equity). If you can afford the payment at 60 months, don't stretch it further.
Frequently Asked Questions
What is a good car loan interest rate in Canada in 2026?
Promotional manufacturer rates run 0.99%–4.99% on new vehicles; bank and dealer financing for used cars typically ranges 6.99%–9.99% depending on credit score, term, and vehicle age.
Do I pay sales tax on a financed car?
Yes — GST/HST/PST applies to the vehicle price (after trade-in credit in most provinces) and is usually rolled into the loan, so you also pay interest on the tax.
Is it better to make a bigger down payment or shorter term?
Both cut interest, but a shorter term usually saves more overall and protects you from negative equity. Aim for at least 10–20% down and no more than 60 months.
Can I pay off a car loan early in Canada?
Most Canadian car loans are open loans with no prepayment penalty — extra payments go straight to principal. Confirm with your lender before signing.