Calculate auto loan payments with taxes, fees, and trade-in value
Title, registration, documentation fees, etc.
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This car loan calculator helps you estimate your monthly payments and total cost when financing a vehicle. It includes all the important factors such as sales tax, trade-in value, down payment, and additional fees.
An auto loan calculator is essential for understanding your vehicle financing costs before visiting a dealership. Our car payment calculator factors in your vehicle price, down payment, trade-in value,interest rate, and loan term to show your exact monthly car payment. This helps you determine your car affordability and avoid buyer's remorse from taking on too much auto debt.
The APR (Annual Percentage Rate) on your car loan significantly affects your total cost of financing.New car loans typically have lower rates (4-7%) compared to used car financing (6-12%). Your credit score,loan term, and vehicle age all impact your rate. Dealer financing may offer promotional rateslike 0% APR, but compare these to bank auto loans and credit union financing to ensure you're getting the best deal.
Your trade-in vehicle can significantly reduce your amount financed. Research your vehicle's market valueusing online valuation tools before negotiating with dealers. The trade-in allowance directly reduces your purchase price, lowering both your sales tax and monthly payment. Consider getting quotes from multiple dealerships and private saleoptions to maximize your trade-in equity.
A substantial down payment (ideally 20% for new cars and 10% for used vehicles) provides multiple benefits: lower monthly payments, reduced interest charges, better loan approval odds, and protection against beingupside down on your loan. A larger cash down payment also helps you avoid negative equity situations where you owe more than the car is worth due to depreciation.
Car loan terms typically range from 24 to 84 months, with 60 and 72-month loans being most common. While longer loan termsoffer lower monthly payments, you'll pay significantly more in total interest and risk owing more than the car's value.Shorter terms (36-48 months) save thousands in finance charges and help you build equity faster. Consider your budget and vehicle depreciation when selecting your repayment period.
Beyond the vehicle price, factor in sales tax (5-15% depending on province), registration fees,documentation fees, dealer prep charges, and licensing costs. Some dealers add dealer markups,extended warranties, paint protection, and GAP insurance to increase profits. Our calculator includes an "other fees" field to account for these additional costs. Always review the purchase agreement carefully and negotiateunnecessary add-ons.
New vehicle loans offer advantages like manufacturer incentives, lower interest rates, andlonger warranties. However, new cars depreciate 20-30% in the first year. Used car loans have higher rates but lower purchase prices and slower depreciation. Certified pre-owned (CPO) vehicles offer a middle ground with manufacturer warranties and competitive financing. Consider total ownership costswhen comparing options.
When considering vehicle financing, compare buying vs leasing. Car leases offer lower monthly paymentsand the ability to drive a new car every few years, but you don't build equity and face mileage restrictions.Buying with a loan means higher payments but you own the vehicle at the end, can drive unlimited miles, and can sell or trade when ready. Use our calculator to compare financing costs against lease payments for your situation.