Hidden closing costs every first-time Canadian homebuyer forgets
The down payment is only the start. From double land transfer tax in Toronto to title insurance and adjustments, here’s the 1.5–4% of the price most buyers don’t budget for.
5 min readBorrowing
Car Loan Calculator Canada
Estimate your monthly and bi-weekly auto loan payments, total interest, and the true cost of your next vehicle.
Your car loan payment
Enter your numbers — the estimate updates instantly.
Your vehicle
Sticker price before tax and fees.
Applied after sales tax. Trade-in tax credits vary by province.
Sets the correct GST/HST/PST/QST on the vehicle price.
Your loan terms
Common terms run 36 to 96 months.
Your results
What the loan really costs.
Monthly payment
$0
Standard monthly amortization.
Bi-weekly equivalent
$0
Total interest
$0
Sales tax (13% HST)
Amount financed
Total of payments
Total vehicle cost
Planning estimate only. Sales tax is added automatically for your selected province — excludes licensing, registration and dealer fees.
Buying a home next? Know your full budget.
A car payment affects how much mortgage you qualify for. Check what home price fits your budget before you sign.
Check mortgage affordabilityHow is a Canadian car loan payment calculated?
A Canadian car loan payment is calculated by amortizing the amount financed — vehicle price plus sales tax and fees, minus down payment and trade-in — over the loan term at the annual rate. Each monthly payment covers interest on the remaining balance first, with the rest reducing principal until the loan is paid off.
How car loans work in Canada
A Canadian car loan is a closed-end amortizing loan: you borrow a fixed amount, interest accrues monthly on the declining balance, and each fixed payment chips away at principal and interest until the balance hits zero. Rates are usually fixed, and terms commonly run from 36 to 96 months.
The four numbers that set your payment
- Vehicle price — the sticker price before tax and fees.
- Down payment or trade-in — every dollar here is a dollar you do not finance and do not pay interest on.
- Interest rate — set by the lender based on the policy rate, your credit score, and whether the car is new or used.
- Loan term — longer terms shrink the monthly payment but grow the total interest, often dramatically.
The sticker price is not the price
Advertised prices exclude sales tax and fees. Choose your province or territory above and the calculator applies the right combined sales tax to the vehicle price — 5% GST in Alberta and the territories, 13% HST in Ontario, 15% HST in New Brunswick, P.E.I. and Newfoundland and Labrador, 14% HST in Nova Scotia, GST + PST in B.C., Saskatchewan and Manitoba, and GST + QST in Quebec — before you add licensing, registration and dealer administration fees, typically a few hundred dollars more.
The tax figure assumes a standard dealer purchase of a passenger vehicle: the base 12% combined rate in B.C. (luxury passenger-vehicle PST tiers and private-sale rules are not modelled), and no trade-in tax credit, which varies by province. Confirm both with your dealer.
| Term on $30,000 at 6.99% | Monthly payment | Total interest |
|---|---|---|
| 60 months | $594 | $5,634 |
| 84 months | $453 | $8,021 |
Stretching from 60 to 84 months saves about $141 a month but costs roughly $2,387 more in interest — and keeps you paying years after the warranty expires.
Bi-weekly vs monthly payments
A standard bi-weekly schedule simply splits your monthly payment in two — it costs the same per year. An accelerated bi-weekly plan pays half your monthly amount every two weeks: 13 monthly payments a year, so the loan is paid off faster with less interest.
Watch for negative equity: cars depreciate fastest in the first two years. A small down payment plus a long term can leave you owing more than the car is worth — painful if you need to sell or the car is written off.
Frequently asked questions
What is a good car loan interest rate in Canada?
Rates vary with the Bank of Canada policy rate, your credit score, and whether the vehicle is new or used. New-car promotional rates from manufacturers are often lowest; banks and credit unions typically beat dealership financing on used vehicles. Always compare the total interest, not just the monthly payment.
Should I make a down payment on a car?
Yes, if you can. A down payment — or a trade-in, which works the same way — reduces the amount you finance and the total interest you pay. It also protects you from owing more than the car is worth if its value drops faster than your loan balance.
How long should my car loan term be?
Shorter terms mean higher payments but far less interest and less risk of negative equity. Terms of 84 or 96 months cut the monthly payment but add thousands in interest and keep you paying long after the warranty expires. Most buyers do best at 60 months or less.
Does this calculator include HST and fees?
No. The estimate covers the financed amount only. Pick your province and the calculator adds the correct sales tax — for example 13% HST in Ontario, so a $35,000 car costs $39,550 before fees — plus licensing, registration and any dealer administration fees.
Is bi-weekly better than monthly for a car loan?
A standard bi-weekly schedule (monthly payment × 12 ÷ 26) costs the same per year as monthly payments. An accelerated bi-weekly plan — half the monthly payment every two weeks — adds up to 13 monthly payments a year and pays the loan off faster with less interest.
Related calculators
Keep planning with more free Canadian finance tools.
Latest Financial Insights & Guides
View All Articles →
Buying Strategies
Housing
Renting vs Buying in Toronto: The Real Math
The 5% rule, opportunity cost of your down payment, CMHC insurance, double land transfer tax, and when buying actually wins.
8 min read
Housing
Is it worth breaking a fixed-rate mortgage in 2026?
A lower rate doesn’t automatically mean you should break your mortgage. Here’s the break-even math that decides it — and the situations where staying put wins.
5 min read