Enter vehicle price, down payment, loan term, and interest rate. Get monthly payment, total interest, and total cost instantly. Compare scenarios easily.
Understand true financing costs before dealership visits. Compare payments, terms, and rates to fit your budget.
Uses standard amortization formula dividing principal across term with compound interest.
Focus on loan amount; add 15% HST for Nova Scotia totals.
Canada: 4-10% depending on credit, lender, vehicle age.
Yes, generates complete amortization showing principal and interest per payment.
From affordability to insurance to trade-in value:
Average auto loan rates in Canada range from 4.99% (prime borrowers, new car from a dealership) to 14.99%+ (subprime, used car from a buy-here-pay-here). For the best rates, you typically need credit score 720+, stable employment 2+ years, and 10-20% down payment. Credit unions and online lenders (like AutoCanada, Car loans Canada) often beat dealership rates by 1-3%. In 2026, with the Bank of Canada rate stable, expect prime + 1-3% for most borrowers.
Almost never. 84-month (7-year) auto loans mean you'll be paying for a car that's already 8+ years old by the time the loan ends. You'll also be deeply underwater on the loan for the first 3-4 years. Better options: 60 months (5 years) is the sweet spot for most buyers. 72 months is okay if you can put 20%+ down. Anything longer means you pay significantly more interest and risk being stuck with a car you can't afford to fix or replace.
Use the 10% rule: total vehicle costs (payment + insurance + gas + maintenance) should be under 10% of gross monthly income. On $50K, that's ~$417/month. With insurance $150, gas $100, maintenance $50, your payment should be ~$117/month — meaning a $25,000 vehicle financed over 60 months at 7% ($495/month) is too much. A more conservative rule: total vehicle value shouldn't exceed 35% of annual income, so $17,500. The "20/4/10 rule" is also useful: 20% down, 4-year loan max, payment under 10% of income.
More down payment almost always wins. The difference: $10K down vs $5K down on a $25K car at 7% over 60 months saves you about $1,500 in interest over the loan. The $5K you keep in the bank earns interest too, but at ~3% in savings vs 7% loan rate, you come out ahead putting the extra $5K down. Exception: if your alternative use of the cash earns more (e.g., high-interest debt at 22%, or investments at 8%+), keep it instead. For most buyers, more down is better.
Yes, and it often saves money. If your credit score improved or rates dropped since you got the original loan, refinancing to a lower rate or shorter term can cut your payment or save thousands in interest. Typical process: apply with 2-3 lenders (banks, credit unions, online), compare offers, choose the best, the new lender pays off the old loan. Watch for fees ($0-200), prepayment penalties on the old loan (rare on auto loans), and don't extend the term — that just lowers your monthly payment but increases total interest.
Join 500+ Canadians getting the best new tools and tax/finance tips every Friday. Unsubscribe anytime.
The Toolzie Auto Loan Calculator helps you figure out your monthly car payment before you visit the dealership. Enter the vehicle price, down payment, interest rate, and loan term to see your exact monthly cost and total interest paid.
Use the APR (Annual Percentage Rate) quoted by your bank, credit union, or dealership.
Enter the full out-the-door price including taxes and fees in the vehicle price field for the most accurate result.
Most Canadians choose 60–84 month terms. Shorter terms mean higher payments but less total interest paid.
Yes — simply change the interest rate or term and recalculate to compare different financing options.
A good APR depends on your credit and the lender, but as of 2026 prime borrowers typically get 4.99–7.99% APR. Subprime borrowers may see 9.99–19.99%. Dealers often advertise 0% on new cars for qualified buyers, but these usually require strong credit and the shortest terms. Always compare the APR, not just the monthly payment — a lower payment over a longer term can mean paying thousands more in interest.
An amortization schedule shows how each payment is split between principal and interest, and how your balance shrinks over time. This calculator builds the full schedule — see the table below the result. Early payments are mostly interest; later payments are mostly principal. Use the schedule to see exactly when you'll be halfway paid off, and to plan extra payments strategically.
Yes — and it's one of the best ways to save on interest. Paying half your monthly payment every two weeks (26 half-payments per year instead of 12 full payments) adds up to one extra full payment per year. On a $30,000 loan at 6% over 60 months, switching to biweekly saves roughly $900 in interest and pays the loan off 14 months early. Just confirm your lender doesn't charge prepayment penalties first.
On a $700/month budget at 6% APR over 60 months, you can afford about $36,500 financed. Over 72 months (the longest most lenders allow), about $42,000. Use this calculator's "calculate loan amount" mode to find the exact number for your rate and term. A common rule of thumb: keep total vehicle costs (payment + insurance + gas + maintenance) under 15% of your monthly take-home pay.
Both reduce your total interest paid, but a larger down payment is usually better because it reduces the principal you finance. As a rule, every $1,000 down saves you roughly $150-250 in interest over a 60-month loan at 6%. Aim for at least 10-20% down on a new car, 20%+ on used. If you can only afford one, prioritize the down payment over shortening the term — unless you have the cash to pay off the loan early.