Calculate your payments, total interest, and full cost including provincial sales tax
Each bar splits that year's payments into principal and interest. Interest is heaviest at the start, when the balance is largest.
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Enter your vehicle price, down payment, annual interest rate, loan term, payment frequency, and province. The calculator will instantly show your estimated payment, total interest paid, and the full cost of ownership including provincial sales tax. The amortization chart shows you exactly how much of each year's payments go toward the loan principal versus interest, so you can see how equity builds over time. All calculations use the standard Canadian car loan formula and include the correct federal and provincial sales tax rates for your province.
Canadian car loans use simple interest amortization. Your periodic payment is fixed, but the split between principal and interest changes every period. In the early periods, most of your payment covers interest; in later periods, more goes toward the principal. Choosing a more frequent payment schedule (such as bi-weekly instead of monthly) reduces the total interest you pay because interest accrues on a lower average balance. The effect is real but modest: on a $30,000 loan over five years at 7%, switching from monthly to bi-weekly payments saves about $47 in interest, and weekly payments save about $67. Higher rates widen the gap a little: at 15% the bi-weekly saving is closer to $96.
The sales tax you pay when buying a vehicle depends on your province. Ontario charges 13% HST, British Columbia charges 12% (5% GST + 7% PST). Alberta, the Northwest Territories, Nunavut, and Yukon charge only the 5% federal GST. New Brunswick, Newfoundland and Labrador, and Prince Edward Island charge 15% HST, and Nova Scotia charges 14% HST. Manitoba charges 12% (5% GST + 7% RST) and Saskatchewan charges 11% (5% GST + 6% PST). This tax applies to the full purchase price of the vehicle before any down payment, so it directly increases the amount you need to finance.