Auto Loan Calculator

How the Auto Loan Calculator Works

This auto loan calculator helps you estimate your monthly car payment by factoring in the vehicle price, sales tax, down payment, trade-in value, interest rate, and loan term. Understanding these costs upfront helps you budget better and negotiate confidently with dealerships.

Understanding Auto Loan Costs

Amount Financed: This is calculated as: Vehicle Price + Sales Tax - Down Payment - Trade-In Value. This is the actual amount you'll be borrowing from the lender.

Sales Tax: In Canada, you pay provincial sales tax (PST/HST/GST) on vehicle purchases. The rate varies by province:

• Ontario: 13% HST
• British Columbia: 12% (7% PST + 5% GST)
• Alberta: 5% GST only
• Quebec: 14.975% (9.975% QST + 5% GST)
• Nova Scotia, New Brunswick, PEI, Newfoundland: 15% HST

Note: Sales tax is typically calculated on the purchase price after trade-in value is deducted in most provinces.

Tips for Getting the Best Auto Loan

• Shop around: Compare rates from banks, credit unions, and dealership financing
• Consider a larger down payment: Reduces the amount financed and total interest paid
• Choose shorter terms: While monthly payments are higher, you'll pay significantly less interest
• Check your credit score: Better credit scores qualify for lower interest rates
• Get pre-approved: Knowing your rate helps you negotiate better at the dealership

New vs Used Vehicle Financing

New vehicles typically qualify for lower interest rates (sometimes 0% promotional financing) but depreciate faster. Used vehicles have higher interest rates but lower purchase prices. Consider the total cost of ownership, not just the monthly payment.