Key takeaways
- Adds the dealer sales tax for your province, after any trade-in
- Monthly payment uses standard loan amortization with monthly compounding
- Shows total interest and the balance left at the end of each year
- A longer term lowers the payment but raises total interest
How the calculator works
- Sales tax: price minus trade-in, times your province’s dealer rate: 13% HST in Ontario, 14% in Nova Scotia, 15% in New Brunswick, Newfoundland and Labrador and PEI, 5% GST plus 9.975% QST in Quebec, 5% GST plus 7% RST in Manitoba, 5% GST plus 6% PST in Saskatchewan, 5% GST plus 7% to 20% PST in BC (by price), and 5% GST only in Alberta and the territories.
- Amount financed: price + tax + financed fees − trade-in − down payment.
- Payment: the standard loan formula, payment = amount × r ÷ (1 − (1 + r)−n), where r is the annual rate ÷ 12 and n is the number of months.
- Schedule: each month, interest is charged on the balance and the rest of the payment reduces it.
Worked example
You buy a $30,000 car from a dealer in Ontario, with $4,500 down, at 7.99% for 72 months.
- HST: 13% × $30,000 = $3,900
- Amount financed: $30,000 + $3,900 − $4,500 = $29,400
- Monthly payment: $515.33
- Total interest over 6 years: about $7,704
At 60 months instead, the payment rises to about $596 but you save about $1,345 in interest.
Choosing a term
Terms of 84 or 96 months make payments look small, but you pay much more interest and may owe more than the car is worth for years. If you need to sell early, you would have to pay the difference. Try to keep the term no longer than you plan to keep the car, and compare the total interest, not just the payment.
Sales tax on a car from a dealer, by province
| Province or territory | Tax at a dealer (October 2026) |
|---|---|
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST |
| Quebec | 5% GST + 9.975% QST |
| British Columbia | 5% GST + 7% PST under $55,000; 8% to 20% PST above, on the full price |
| Manitoba | 5% GST + 7% RST |
| Saskatchewan | 5% GST + 6% PST |
| Alberta, Yukon, NWT, Nunavut | 5% GST |
Private sales are taxed differently. For example, Ontario charges 13% retail sales tax on the price or wholesale value, whichever is higher, when you register the car.
Paying the loan off faster
Most bank car loans let you pay extra or pay off the loan early without a penalty. RBC, Scotiabank and CIBC say so on their newcomer pages. Even small extra payments cut interest, because each one reduces the balance that interest is charged on. Paying weekly or bi-weekly instead of monthly also helps a little. Check your contract for any fees.
For newcomers
Bank newcomer programs often need a down payment, for example 15% at RBC. They also limit the term for foreign workers (60 months at TD). See newcomer auto loans compared and car loans with no credit. Check the full monthly cost, with insurance and fuel, in the affordability calculator. For a private sale, work out the tax with the vehicle purchase tax calculator.