What does a $35,000 car really cost in Ontario? Add 13% HST and the price becomes $39,550. Put $3,000 down, borrow at 7.49% for six years, and each month costs you $631.78. Enter your own price, province, down payment and trade-in below, and you’ll see yours.
How does the calculator get to a payment?
It starts with the price you enter and adds the sales tax for your province. Your down payment and trade-in come off that total, and what’s left is the amount you borrow. Payments stay level for the whole term, and interest is charged at your rate once per payment. You can pick monthly payments, or bi-weekly ones at 26 a year.
How much does the term change the payment?
It’s a big lever. The table uses the default car above, a $36,550 loan at 7.49% after tax and a $3,000 down payment, and only the term changes.
| Term | Monthly payment | Total interest |
|---|---|---|
| 2 years | $1,644.57 | $2,919.65 |
| 3 years | $1,136.76 | $4,373.52 |
| 4 years | $883.57 | $5,861.28 |
| 5 years | $732.21 | $7,382.80 |
| 6 years | $631.78 | $8,937.92 |
| 7 years | $560.43 | $10,526.42 |
| 8 years | $507.27 | $12,148.08 |
What does the $35,000 car cost in total?
Take that car in Ontario with no trade-in. HST is $4,550, so the price with tax is $39,550, and after the $3,000 down payment you borrow $36,550. Over six years you pay $631.78 a month. That adds up to $45,487.92, and $8,937.92 of it is interest.
Add a $5,000 trade-in and the loan drops to $31,550. The payment falls to $545.35, and total interest to $7,715.22. Buy the same car in Alberta and you pay only $1,750 of GST, which makes the price with tax $36,750. The loan is then $33,750, and the six-year payment is $583.38.
Is a longer loan a good idea?
Usually not.
Buyers often compare cars by the monthly payment alone, and it’s an easy trap to fall into when the dealer asks what you’d like to pay each month. Stretch the term from four years to eight and the payment drops from $883.57 to $507.27, but the interest more than doubles. Ask what the loan costs in total. The monthly figure is only a slice of it.
The result leaves out dealer fees, insurance and registration, so budget for those on their own. It also adds tax to the full price and takes off the trade-in afterwards. If your deal treats tax on a trade-in differently, ask the dealer for the exact figure, since that’s a number we can’t see. And use the rate written in your loan offer, since a rate in an advertisement may need a strong credit score.
How can you lower the cost?
Put more down. That’s the surest way to cut interest, because you borrow less. Add $5,000 to the down payment or trade-in and the default payment goes from $631.78 to $545.35. Shopping for a lower rate helps as well, and the rate field lets you test each offer.
Where do the numbers come from?
Sales tax uses the current combined rate for each province, such as 13% HST in Ontario and 5% GST in Alberta. The payment follows the standard level-payment loan formula, with the rate divided across the payments in a year. Lenders round in their own ways, so don’t be surprised if your contract lands a few cents away. This website has no connection with a lender, the CRA or any government body.
A payment only helps if it fits your month, so test it in the monthly budget calculator. If you’d rather not pledge a vehicle, price a personal loan instead. The interest calculator shows what a rate does to any sum over time, and the HST and GST calculator shows the tax alone on any price.
Frequently asked questions
How is a car loan payment worked out?
Price plus sales tax, minus your down payment and trade-in, is the amount you borrow. The rate and term then set a level payment.
Does a longer term save money?
No, the payment shrinks but the interest grows. Eight years costs $12,148.08 in interest on the default loan, against $5,861.28 over four.
Is sales tax part of the loan?
Yes. The calculator adds your province's tax to the price before it takes off the down payment and trade-in.
Which costs are left out?
Dealer fees, insurance and registration. Budget for these on top of the payment.
Should I pay monthly or bi-weekly?
At 26 payments a year, the default loan costs $291.20 each time, with $8,877.61 in interest.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.