Auto Loan Calculator
Calculate your Canadian auto loan monthly payment, total interest, and amortization. Includes provincial sales tax and accelerated biweekly comparison.
How this calculator works
Enter the vehicle price (pre-tax) and your province; the calculator adds the correct provincial sales tax (HST, GST+QST, or GST+PST) on the price minus trade-in, subtracts your down payment and trade-in to determine the financed amount, then computes monthly payments and full amortization. Toggle accelerated biweekly to see months saved and interest saved versus monthly.
Loan details
Sales tax is applied to the vehicle price minus trade-in value in most provinces.
Loan summary
Amortization schedule (year by year)
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $9,666 | $2,782 | $6,885 | $33,315 |
| 2 | $9,666 | $2,247 | $7,419 | $25,896 |
| 3 | $9,666 | $1,671 | $7,995 | $17,901 |
| 4 | $9,666 | $1,050 | $8,616 | $9,285 |
| 5 | $9,666 | $382 | $9,285 | $0 |
Year-end values shown. Interest is highest in early years and decreases as principal is paid down.
About Canadian auto loans
Auto financing in Canada is built on three pieces: the vehicle sale price, the amount financed after down payment and trade-in, and the annual interest rate. Monthly payments are calculated using a standard amortization formula, the same as a mortgage but over a much shorter term (typically 24 to 96 months). Provincial sales tax (GST, HST, QST, or GST+PST combination) applies to the purchase price minus the trade-in value in most provinces, which provides meaningful savings for buyers with a trade-in.
Dealer financing vs bank loans
The dealer routes your application to multiple financial institutions (banks, captive auto finance companies, credit unions) and receives a commission on the rate awarded. This commission can add 1 to 2 points to your rate compared to going directly to your bank. Conversely, manufacturer-subsidized financing promotions (for example, 1.9% for 60 months) are sometimes below bank rates, but they may require forfeiting a cash rebate. Always compare both: a $3,000 rebate at 7% can beat a 1.9% rate with no rebate.
Effect of credit score on rate
Credit score strongly drives the rate offered. With a Beacon of 750 or higher in 2026, you get the best rates (often 5 to 7%). Between 660 and 749, expect 7 to 10%. Between 580 and 659, subprime rates of 10 to 16% become typical. Below 580, financing at 18 to 25% is common. Improving your score by 50 points before buying can save thousands in interest over a 5-year loan.
Accelerated biweekly payments
Instead of paying once per month (12 payments/yr), accelerated biweekly splits your monthly payment in half and withdraws every 14 days (26 payments/yr, equivalent to 13 monthly payments). You pay an extra full month each year, which reduces principal faster and saves hundreds to thousands in interest. On a 5-year loan, expect to cut the term by 6 to 8 months.
When to refinance an auto loan
Refinancing is worthwhile when you can drop your rate by more than 1.5 points with no prepayment penalty. Common triggers: your credit score has risen 50+ points, market rates have fallen, or you want to remove a co-signer. Watch for prepayment penalties (often none on Canadian auto loans, but present on some contracts). Calculate the breakeven: interest savings must outweigh any fees within 12 to 18 months.
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Frequently Asked Questions
Last updated: July 2026
Dealer financing routes your application to multiple lenders (banks, captive finance arms like Ford Credit, credit unions) and the dealer receives a commission, typically 1 to 2 percentage points above the lender's buy rate. Manufacturer-subsidized rates (for example, 1.9% for 60 months) are sometimes lower than any bank, but they often require forfeiting a cash rebate of $1,500 to $3,000. Always compare: take the rebate at your bank's rate, OR take the subsidized rate without the rebate. The math is usually closer than the salesperson suggests.
Major Canadian banks tier auto loan rates by Beacon score: 750+ gets the prime rate (often 5 to 7% in 2026), 660 to 749 gets prime + 1 to 3% (8 to 10%), 580 to 659 gets subprime rates (10 to 16%), and below 580 gets deep subprime (18 to 25%). A 50-point credit improvement before applying can save thousands. Check your free score at Borrowell or Credit Karma, pay down credit card balances to under 30% utilization, and avoid new credit applications in the 6 months before you apply.
Reviewed by Alexandre Bernier, CFP®, CIM®
Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →