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Car Loan Calculator

Work out your car loan payments, the total interest and the real cost of the car, with GST, HST or PST for your province, your down payment and trade-in.

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For GST, HST or PST

More options
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Registration, documentation and similar

Monthly payment

$807.09

60 payments on $41,200 at 6.55%

Total interest
$7,225
Total cost
$52,425
What the car really costs
  • Car price$40,000
  • Interest$7,225
  • Tax and fees$5,200

What this means

Interest adds $7,225, so the car really costs $52,425.

A shorter loan or a bigger down payment cuts the interest. Cars lose value fast, so try not to owe more than the car is worth.

Next step

Breakdown

Car price$40,000.00
Sales tax$5,200.00
Down payment-$4,000.00
Amount borrowed$41,200.00
Interest$7,225.41
Total repaid$48,425.41

About the rate

Chartered banks’ average rate on new auto loans was 6.55% in June 2026 (Statistics Canada).

Use the rate you’ve been offered: it depends on your credit, the lender, the car’s age and the loan length. A longer loan lowers each payment but costs more interest.

Principal and interest paid each year
$9,685$4,843$0
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PrincipalInterest
Assumptions in this estimate
  • Assumes a fixed rate and equal repayments, with interest worked out on each repayment. Your lender’s figures can differ slightly.
  • Sales tax is your province’s GST, HST or PST on the price after your trade-in. Buying privately can be taxed differently.
  • Balloon payments, lender fees and insurance aren’t included.
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How the calculator works

  1. The amount you borrow: the car price, plus GST, HST or PST and any fees you add to the loan, less your down payment and trade-in.
  2. Your car payment: worked out so equal payments repay the loan, with interest, by the end of the loan.
  3. The real cost: everything you pay, up front and in repayments. The chart below shows how much of each year’s payments goes on interest.

An example

A $40,000 car in Ontario has $5,200 of HST. With $4,000 down, you borrow $41,200. At 6.55% over 60 months, that’s $807.09 a month and $7,225 of interest. Chartered banks’ average rate on new auto loans was 6.55% in June 2026.

The rate you’re offered depends on your credit history, the lender, the car’s age and the loan length, so use your own rate for the most accurate result.

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Frequently asked questions

How is a car loan payment worked out?

Your loan is the car price plus sales tax and fees, less your down payment and trade-in. Equal payments repay it with interest over the loan. On a $40,000 car in Ontario with $4,000 down, at 6.55% over 60 months, that’s about $807 a month.

Is a longer car loan better?

It lowers each payment but costs more in interest overall, and you can owe more than the car is worth for longer.

How can I lower my car payment?

Put more down, trade in your old car, compare rates from banks, credit unions and the dealer, or choose a cheaper car. A longer loan lowers the payment but costs more interest.