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Calculate payments with Canadian tax, trade-in, and lease vs buy comparison
Price, tax & interest
Monthly payment
$692
Effective interest rate
7.50%
Beyond loan payments, budget for insurance (often about $1,500–$3,000 per year), maintenance, fuel, registration, and depreciation. Use this calculator for loan cost only — budget roughly 20–30% extra for ownership costs as a rough rule of thumb.
Payment estimates are illustrative only. Actual taxes, dealer fees, and loan terms vary by province and lender. Lease models are simplified. Consult a dealer or lender for personalized advice.
A $35,000 car in Ontario with $5,000 down at 7.5% costs about $692 a month over 60 months, with $6,989 of interest.
| Term | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| 48 months | $34,550 | $835 | $5,548 |
| 60 months | $34,550 | $692 | $6,989 |
| 72 months | $34,550 | $597 | $8,461 |
| 84 months | $34,550 | $530 | $9,965 |
Includes HST (13% ON) on the price as financed by the calculator; dealer fees, insurance and registration are extra.
Provincial sales tax rules vary: HST or GST+PST (or GST+QST in Quebec) generally applies to the taxable purchase price. In many provinces, a trade-in reduces the taxable amount — this calculator follows that approach for illustration.
In many provinces, including Ontario, the trade-in allowance can reduce the price subject to sales tax. Rules differ — confirm with your dealer and provincial guidance.
Rates depend on credit score, lender, new vs used vehicle, and term. New-car promotions are often lower; used cars may see higher rates. Compare offers from banks, credit unions, and dealer financing.
Leasing can mean lower monthly payments and a new car more often; buying builds equity and avoids mileage or wear charges. Total cost depends on interest, residual, fees, and how long you keep the vehicle.
Terms of 60–84 months are common but longer terms increase total interest. Shorter terms save interest if you can afford the payment.
Some lenders specialize in subprime auto loans, but rates are higher and terms may be stricter. Improving your credit score before applying can reduce costs.