Car Loan Payment Calculator for Canada (2023)

Are you looking to finance the purchase of a new or pre-owned car?

You can use this car loan payment calculator to estimate how much interest you will be paying over the term of your car loan. It will also help you understand whether you can afford the required monthly payments before you approach a lender or car dealership.

How To Use The Car Loan Payment Calculator

1. Enter the price of the car (new or pre-owned). You can choose to add the sales tax as well in this section if you do not intend to pay the sales tax (i.e. PST/GST/HST) in cash.

2. Enter the cost of dealer, title, and car registration. If you will pay this in cash, you can enter $0.

3. Enter the value of your Trade-in.

4. Enter the amount of your downpayment. A higher downpayment lowers your loan amount and the total interest you will pay over time.

5. Choose a loan term by entering the number of months it will take to repay the loan.

6. Enter the interest rate.

7. Click on the “Calculate” button to see the results.


Assuming you are buying a $50,000 car and the following apply:

  • Dealer and registration fees: $0
  • Trade-in value: $5,000
  • Down payment: $5,000
  • Loan term: 60 months
  • Interest rate: 5%

Using the auto loan payment calculator, you will finance $40,000 and pay $754.85 every month for 5 years (60 months). Your total interest fee is approximately $5,291.

What is a Car Loan?

A car loan or auto loan refers to money you borrow from a lender in order to purchase a vehicle.

Some key terms you should understand before taking a car loan are:

Interest rate: This is the cost of the loan and it is calculated on an annual basis. The interest rate determines how much money you will end up paying for the car.

Downpayment: This is the money you provide upfront and out of pocket when buying a car. A larger downpayment is preferable as it lowers your monthly payment and may also help you qualify for a lower interest rate.

Trade-in value: This is the price you negotiate with a dealer for your current vehicle. The trade-in value of your car is deducted from the purchase price of the vehicle you are buying.

Loan term: This is the amount of time it will take you to pay back the car loan. It is usually expressed in months and ranges from 36 months to 84 months. You can also choose a shorter term if you can afford it.

Car Loan Lenders in Canada

Banks like RBC, TD, BMO, CIBC, and Scotiabank offer car loans.

If you are looking to shop around and compare the best car loan rates in Canada, you can use any of these platforms:

Cars Fast

Cars Fast is a popular destination for getting a car loan regardless of your credit score. The platform has partnerships with top loan providers, including TD, Scotiabank, RBC, HSBC, and others.

Interest rate: Varies.

Loan term: 12-96 months.

Maximum loan amount: $75,000.

Eligibility: Earn at least $20,000/yr, reside in ON, BC, or AB; and be employed for 3 months+.

Loans Canada

Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders.

Interest rate: 1.99% to 46.96%.

Loan term: 4-60 months.

Maximum loan amount: Up to $50,000.


LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.

Interest rate: 6.99% to 46.9%.

Loan term: 3-120 months.

Maximum loan amount: Up to $50,000.

Best Car Loan Interest Rates in Canada

You will need a ‘good’ to ‘excellent’ credit score if you want to access low auto financing rates in Canada.

Credit score ranges are as follows:

  • Excellent credit score: 760 – 900
  • Very good credit score: 725 – 759
  • Good credit score: 660 – 724
  • Fair credit score: 560 – 659
  • Poor/bad credit score: 300 – 559

You can check your credit score for free.

While it is easier to get a car loan when your credit score is 660 and higher, there are also options for bad credit car loans.

Bad credit car loans have higher interest rates.


You can also check out our personal loans and compound interest calculators.

Disclaimer: Calculation results are approximations and for information purposes only.