Calculate your monthly car loan payment with provincial sales tax built in. Adjustable down payment, trade-in, interest rate, and term — see total interest paid before you sign.
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Estimated monthly payment
$760/ month
Sales tax on price: $4,940
Total financed: $37,940
Total interest over 5 years: $7,674
Total paid (loan + interest): $45,614
Standard amortization formula with monthly compounding (matches how Canadian car loans work — different from mortgages, which use semi-annual compounding). Sales tax defaults to 13 % (Ontario HST); change to your province (5 % AB/SK/YT/NT/NU; 5 % + 7 % BC = 12 %; 5 % + 8 % MB; 5 % + 9.975 % QC = ~14.975 %; 15 % HST in Atlantic provinces). Loans over 5 years usually carry a higher interest rate; loans over 7 years risk being upside-down (owing more than the car is worth) for most of the term.
How car loans differ from mortgages
Canadian car loans use simple monthly compounding (the rate divided by 12, applied each month) — different from Canadian mortgages, which compound semi-annually. The math is otherwise identical to a fixed-rate amortizing loan: each payment covers some interest plus some principal, with interest dominating early payments and principal dominating late ones.
The 20/4/10 rule
A common rule from the Financial Consumer Agency of Canada: 20 % down, 4-year term maximum, total transportation costs (loan + insurance + fuel + maintenance) under 10 % of gross income. If the car you want fails the 20/4/10 test, it’s a stretch — and a meaningful predictor of financial stress in the years ahead.
Don’t forget the running costs
The monthly payment isn’t the full picture. Add insurance ($150–$300/month for a standard policy in Ontario or BC), fuel ($150–$300/month at typical commuting), maintenance ($60–$100/month average over a 5-year ownership period), and parking if you live downtown. The fully-loaded cost of a $40,000 vehicle is often 50 % higher than just the loan payment.
This tool is for educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a licensed Canadian healthcare professional. Read our full disclaimer.