Car Loan Calculator

Our free car loan calculator will help you estimate interest rates and monthly payments for your loan easily.

When you are ready to purchase a vehicle, financing is almost always the way to do it. Unless you are able to pay for the car in full with cash, you will likely need to apply for and obtain auto financing. However, finding the right auto loan and easy approval can be a challenging experience, especially when you don’t have a lot of free time. One of the most important aspects of taking on debt of any kind is understanding the total cost of the loan and repayment structure, so that you comfortably pay back the loan with no surprises.

Our car loan calculator was created to help you do that in a matter of a few seconds. Of course, you need to carefully review the terms and conditions of any loan offer you are considering, but you can use our calculator as a starting point, and explore different scenarios. 

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It only takes a minute, so go ahead and calculate how much a car loan can cost you.

Auto Loan Calculator

1 year2 year term5 years

Your Payment Details

Your Payment Details

"Below you will find a detailed breakdown of your payments in each month and each year. Find out how much interest, principal and total you'll be paying with the information you entered. Change your term length, interest rate and loan amount to see how it impacts your payment breakdown."

Understanding your car loan payment calculations

Most lenders will take your credit score into account when calculating the interest rate. Higher scores typically translate into lower rates and less stringent terms. Your debt-to-income ratio will often be considered when applying for an auto loan, as well as the type of vehicle you are buying.

Monthly Payments

This is the expected total amount you would have to pay each month.  This value will be based on the terms of the auto loan. Your monthly payments will typically be lower if you choose a loan with a longer term.

Total Cost of Loan

This is the expected total cost of your loan. It includes all the other associated costs of taking out the loan, including interest and any applicable fees.

Payment Details

The Payment Details table breaks down all your payments over the term of your loan, and illustrates the total principal and interest amounts that will be paid back each year over the course of your loan term. Please speak to your lender if you are unclear about any of the loan terms. 


This is your Annual Percentage Rate. (also knows as ‘interest rate’)  Think of the APR as the total annual cost of your car loan. For example. if you take out a $10,000 loan for 1 year, at 10% interest, you will have to pay back $11,000 after the one year passes. 

Frequently Asked Questions

What is a car loan?

A car loan means that you are using a loan in order to purchase a vehicle, and pay for it over time. The loan comes with a fee (interest rate) that must be repaid on top of the total cost of the vehicle.

How does a car loan work?

Auto financing is a secured type of loan, which means that the vehicle you are purchasing is the collateral. You will risk losing the vehicle if you are not repay on time. Typically auto financing loans come with a term of 3 to 6 years, but this can vary on case by case basis.

When should you consider a car loan?

Auto financing is used when purchasing a vehicle, such as a car, a pickup truck, an SUV or a van. Most people utilize auto financing when purchasing a car, unless they are buying it in outright in cash.

How are car payments calculated?

The car payments will be determined based on the total cost of the car, the downpayment that you contribute, the interest rate, and term length. Make sure that you carefully review and understand the terms of your car loan agreement and how the payments are calculated.

What are the current average car loan rates?

Car loan rates can vary greatly depending on your personal financial history, the lender you are getting the financing from, the type of car you are buying and more. In general, car loan annual interest rates can be anywhere from 2% and go up to 30%+.

What are the best places to get a car loan?

The best car loans are hard to find all by yourself. Especially because different loan types and different lending companies are better suited for different people. Check out the list of top auto loan providers at Smarter Loans as a starting point.

How do I qualify for a car loan?

To qualify for a car loan, you will typically need: Proof of residency in Canada, credit history, steady income from employment and government issued ID.

Can I get a car loan online?

There are many companies that offer auto loans in Canada entirely online. At Smarter Loans you can find such companies, apply for an auto loan from the comfort of your home, and receive a pre-approval in 24 hours.

Click Apply Now next to a company of your choice, or select any of the lenders to visit their profile and learn more about their specific products.