Use the calculator below to estimate your monthly car loan payment in Canada. Enter the loan amount, your interest rate (APR) and the loan term to see the estimated payment, total interest and total cost before you apply.
How the car loan calculator works
The calculator uses the standard amortization formula lenders use for fixed-rate auto loans: it spreads the loan amount and interest evenly across equal monthly payments. The result is an estimate. Your actual rate, fees and payment will depend on your credit score, the lender, and whether the vehicle is new or used, since used-car loans in Canada often carry a 1 to 3 percentage point higher rate than new-car loans.
Example: $25,000 over 60 months
At a 7.5% APR, a $25,000 auto loan over 60 months works out to roughly $501 a month, with total interest of about $5,048 over the life of the loan. Drop the rate to 5.5% and the payment falls to about $478 a month, saving close to $1,350 in interest over the same term, which shows why comparing lenders before signing matters as much as the price of the car itself.
What affects your car loan rate in Canada
- Credit score: borrowers above 720 typically access prime rates from 5% to 8%, while subprime borrowers can see 15% to 25% or more
- New vs used: used vehicles usually carry a higher rate because they depreciate faster and have less resale value as collateral
- Loan term: a longer term lowers the monthly payment but increases total interest paid
- Down payment: a larger down payment reduces the amount financed and can improve your approval odds
Frequently asked questions
How accurate is a car loan calculator?
It gives a close estimate of principal and interest, but it does not include taxes, dealer fees, or add-ons like extended warranties, which can add several hundred to a few thousand dollars to the amount you actually finance.
What is a typical car loan term in Canada?
Most Canadian auto loans run 36 to 84 months. Longer terms reduce the monthly payment but mean you pay more interest overall and may owe more than the car is worth for longer.
Can I get a car loan with bad credit in Canada?
Yes, subprime auto lenders and some dealerships offer financing with weaker credit, though expect a higher interest rate. Compare options in our bad credit loans category before committing to a dealership's in-house financing.