Loan Calculator
Calculate the monthly, bi-weekly or weekly payment on a car loan, personal loan or line of credit, the total interest you will pay and your balance at the end of each year.
The loan payment formula
Payment = P x i / (1 – (1 + i)-n), where P is the amount borrowed, i is the interest rate per payment period and n is the number of payments. A $35,000 car loan at 7.99% over 60 months costs about $709.51 a month and $7,570 in interest.
Shorter term, less interest
| $35,000 at 7.99% | Monthly payment | Total interest |
|---|---|---|
| 36 months | about $1,097 | about $4,480 |
| 60 months | about $710 | about $7,570 |
| 84 months | about $546 | about $10,810 |
Long 84- and 96-month car loans lower the payment but can leave you owing more than the car is worth for years (negative equity).
Bi-weekly and weekly payments
Paying every two weeks or every week matches many pay schedules and slightly reduces interest because the balance drops sooner. Dealers often quote bi-weekly payments to make a price look smaller; multiply by 26 and divide by 12 to compare with a monthly figure.
Before you sign
- Compare the APR, which includes fees, not just the advertised rate.
- In Canada, sales tax applies to the vehicle price; ask whether it is included in the amount financed.
- Check for prepayment penalties if you plan to pay the loan off early.
Related tools: Mortgage calculator, Compound interest calculator, Sales tax calculator, Percentage calculator.
FAQ
How is a car loan payment calculated?
The payment depends on the amount financed, the interest rate and the number of payments. The calculator uses the standard amortization formula used by lenders.
Is a 0% loan really free?
The interest is zero, but you may give up a cash discount. Compare the 0% offer with the cash price financed at a bank rate.
How much interest will I pay on a $20,000 loan?
At 8% over 5 years, about $4,330 in total. Enter your own rate and term above.
Can I pay off my loan early?
Most Canadian car and personal loans allow early repayment, but some charge a fee. Check your contract.