Auto Loan Payment Calculator

When you’re planning to buy a new car, there are a lot of costs to consider! Car payments, insurance, tax and the value of your current vehicle are all things you need to think about. You might feel a little overwhelmed, especially if this is your first time purchasing a new vehicle.

We’re here to help! We’ve created a Car Loan Payment Calculator that can help you evaluate all the costs associated with purchasing a new vehicle. All you need to do is add your information and a few of your expected costs. The tool will help you calculate the figures to help you plan and prepare for your new purchase. We can also help you get an insurance quote for your new vehicle!

Ready? Let’s get started!

How it works

Add your info

Our calculator is super simple to use. Just fill it out with your info and you’re on your way!


We take your details and get to work! You’ll instantly get all the information you need to make an informed decision when it comes to buying a new vehicle.

Get a quote!

The last step is getting a car insurance quote. Our insurance brokers will make sure you have the coverage you need at a price that’s fair.

The importance of an Auto Loan Calculator

Why is a Car Loan Calculator valuable? Let’s break it down:

Anticipate your auto price and loan amount

Different things can affect how much you might pay for a car. Here are some of the factors that can impact the price of your car:

  • What type of car you purchase
  • Where you live
  • Provincial sales tax
  • Whether you are purchasing a new or used vehicle

Determine your monthly payments and amortization

Unless you are able to pay the entire cost of your vehicle at once, you will need a car loan. This means you’ll have to make payments monthly or biweekly (twice a month). You’ll also have to make regular car insurance payments. Don’t forget, car insurance is mandatory in Canada! Our Car Loan Calculator can help you determine exactly how much your new vehicle will cost you.

Having this figure will be extremely helpful when planning your budget, and it will offer a clear picture of your finances. Once you know the monthly costs associated with a vehicle, you will know what is and isn’t in your budget. You’ll be better equipped to plan for other expenses such as rent, food, debts and leisure activities.

A Car Loan Calculator can also help you determine what your amortization schedule will be. If you’re scared by the word amortization, don’t be! It simply refers to the process of spreading out your loan payments over time. With an amortization schedule, you’ll be able to know exactly when your car loan will be paid off in full.

See how much you need for a down payment

A Car Loan Calculator can help you determine a down payment that works for you and your budget. A good rule of thumb for a car down payment is about 20 percent. For example, if you are purchasing a car that costs $25,000, a down payment of 20 percent would be $5,000.

You might notice some car dealerships will advertise “no money down” to entice you to purchase your vehicle with them. Even if you can’t afford a 20 percent down payment, it’s a good idea to try to make some kind of down payment. This will reduce your monthly payments and will allow you to pay your loan back faster. It can also help lower interest charges.

Our Car Loan Calculator will help you determine the down payment that makes sense for your budget, timeline and unique circumstances.

Check the interest rate of your loan

One of the great things about a Car Loan Calculator is that it can help you determine what your interest rate will be. This will help you plan how to pay back your loan and how long it will take to pay back your loan.

Car loan terminology

When you’re buying a car, especially your first car, there can be a lot of confusing terminology! Don’t worry, we’re here to help. Check out our list of car terms and definitions below.

  • Vehicle price: We’re starting with an easy one. This is simply how much the vehicle costs.
  • Trade-in value: This is how much a dealer will pay for the car you have now. This can be deducted from the price of the new vehicle you decide to purchase.
  • Sales tax: Every car has tax. The tax rate varies from province to province. Depending where you live in Canada, you can expect to add between 6-15% in taxes to the vehicle price.
  • Loan term: This refers to the length of your loan. How long it takes to pay back your loan depends on how much money you borrow, your monthly payments and the interest rate.
  • Down payment: A down payment is an amount of money paid up-front when you are taking out a loan.
  • Annual percentage rate: Also referred to as APR, this is the total amount of interest you pay each year.
  • Waiver of depreciation: This is an insurance coverage available when you purchase a new vehicle. It means you will be reimbursed for the full replacement value if your car is totalled or stolen.
  • Repayment: This is simply paying back money that was loaned to you.
  • Total interest: Your interest rate is calculated with a percentage. Total interest is the cumulative amount of interest you pay on a loan.
  • Payment amount: This might refer to a few different things. It could be the total payment amount of your vehicle. It might also refer to your monthly payment amount. If you’re unsure what this term refers to, make sure you ask!
  • Purchase price: This is the price you pay for your vehicle.
  • Loan balance: Your loan balance is the amount you still need to pay. For example, after making consistent payments over a period of time, your loan balance will decrease.
  • Owed on trade: This refers to the loan balance outstanding when you trade in a vehicle.

How to budget for a new car

When you’re in the market for a new car, it’s important to consider all the costs. (This is when our Car Loan Payment Calculator comes in handy! Knowing all the costs will help determine your overall budget.)

When making a big purchase like a new vehicle, take the time to research and plan for all the costs associated with that new purchase. This will help you avoid any surprises!

In addition to the cost of the actual car itself, here are a few other things you’ll need to budget for:

  • Gas – this can be a shocker, especially if you’re buying a car for the first time. Don’t forget to add this to your monthly expenses.
  • Maintenance and repairs – if you purchase a new vehicle you won’t have to worry as much about repairs. However, you’ll have to take regular maintenance like oil changes into consideration. If you purchase a used vehicle, you may need more frequent maintenance and repairs.
  • Licensing and registration fees – there are fees associated with registering your new vehicle and getting license plates. You will also have to renew your driver’s license and license plates regularly.
  • Taxes – don’t forget about the tax! Rates vary depending on the province you live in.
  • Insurance – in Canada, car insurance is a legal requirement. You won’t be able to drive without it. Insurance rates vary depending on many factors. It’s important to research your car insurance options and factor this into your budget.
  • Options and add-ons – the price tag on the vehicle you have your eye on is most likely for the basic model. Add-ons can include things like air conditioning, keyless entry and seat warmers.

How interest rates affect your car loan

If you decide to purchase a new vehicle, or even a used vehicle in good condition, you will most likely have to get a loan. Not many people can afford to pay for the cost of a new car all at once.

Car loans have interest, which is the money your lender (typically a bank) receives in exchange for lending money. Interest is usually expressed as a percent. When you get a loan, you pay it back along with the interest at an agreed upon length of time.

How is the interest rate on my car loan determined?

When it comes to a car insurance loan, not everyone gets the same interest rate. Lenders determine interest rates based on a few different factors:

Your credit score

Your credit score is one way a lender will determine your interest rate. A healthy credit score means you have a history of paying your bills and loan payments on time. If you have a history of missed payments, it could negatively affect your credit score, which could result in a higher interest rate.

Down payment

Your down payment is the amount of the loan you pay up front. If you make a larger down payment, you might get lower interest rates.

Debt to income ratio

Debt to income ratio is calculated by dividing your debt by your income. For example:

(Mortgage + credit card debt + car loan payment + student debt)


(Salary + bonuses + investment income)


Debt to income ratio

A high debt to income ratio might make it more difficult to get a loan.

Used cars vs new cars

A big question is whether to purchase a new or used vehicle. There are advantages and disadvantages to both. Of course, a new vehicle has less risk of breaking down and requiring repairs. However, a used car can be much more affordable. Ultimately, it’s up to you to look at your budget and carefully consider which option makes the most sense for you. For more information, check out our Ultimate Guide to Buying a New Car blog post. We go over all the pros and cons of new and used vehicles.

Many people ask which is cheaper to insure: new or used? The truth is an insurance broker won’t even ask if your car is new or used! Other factors including where you live and your insurance history are much more important. We suggest you make the choice that makes the most sense for you and your budget. Then you can work with a broker to find the insurance plan that makes sense for you.

Are you looking to purchase that new vehicle? Contact BrokerLink for an auto insurance quote today!

If you’re ready to purchase a new vehicle, it’s never too early to start thinking about insurance. That’s where we come in! At BrokerLink, our Insurance Advisors make the process easy. We’ll get to know you so we can understand your specific circumstances. We’ll offer independent and unbiased advice. You’ll walk away with insurance that fits your needs at a price that’s fair.

It’s easy to get in touch with us:

Get an auto insurance quote [phone]

Auto Loan Pricing Calculator FAQs

Does financing a vehicle have an impact on my insurance rate?

Financing does not have an impact on your insurance rate. Insurance companies take other factors into consideration such as: the make and model of your vehicle, where you live and your driving experience.

Does the cost of a vehicle affect my insurance rate?

The cost alone of your vehicle doesn’t affect your vehicle in most cases. Insurance companies consider the type of vehicle, how safe it is, and how likely it is to be stolen. If you have an extremely expensive car that has a high likelihood of being stolen or has expensive parts, it’s possible this could affect your insurance rates.

Is a personal loan the same as a line of credit?

No, a personal loan is not the same as a line of credit. A personal loan is a fixed amount that is repaid over a fixed amount of time. With a line of credit, you can borrow up to a certain amount, repay the funds and borrow again as necessary.