Car Finance Calculator

Should you finance —
and at what terms?

Compare up to three deal scenarios side by side. See monthly payments, total interest paid, and whether financing leaves you better off than paying cash — based on what your money could earn instead.

HST + fees included · Leave scenario fields blank to inherit base values

Base Assumptions Shared by all scenarios
Opportunity cost of capital. 8% ≈ XEQT / VEQT long-run average.
Ontario: 13%. BC: 12%. AB: 5%. QC: 14.975%. Check your province.
Pre-delivery inspection and destination fee. Usually $1,500–$2,500, non-negotiable.
HST is charged on the net price after trade-in deduction — calculated correctly here.
Administration and documentation fees. These are negotiable — push back.
Personal Property Security Act lien registration. ~$45 in Ontario.
Rolled into the financed amount if you take it.
💡 Leave any scenario field blank to inherit base values
Base Deal
Alt A
Alt B

Fill in your deal details above and hit Calculate →

How it works

01 — Setup

Enter your shared base values

MSRP, PDI, trade-in, and fees are the same across all three scenarios. Enter them once on the left. HST is applied to the price after trade-in deduction, as most provinces require.

02 — Scenarios

Model different offers

Each scenario lets you vary the selling price, down payment, interest rate, and term independently. Leave a field blank and it inherits from the base. Compare the dealer's offer against a bank loan or a bigger down payment.

03 — Net worth lens

See the opportunity cost

The "net worth gain vs. cash" metric asks: if you had invested the money you didn't put down, how much would it have grown? Positive means financing made you wealthier at your assumed return. Negative means cash was better.

Negotiation tips

🔀 Separate price from financing

Dealers make money on the spread between their financing cost and what they charge you. Negotiate the vehicle price first, then financing. Never let them bundle the two — it's how the monthly payment trick works.

🏦 Get a competing rate first

Before visiting a dealership, get a pre-approval from your bank or credit union. Use it as leverage. In Canada, your bank's rate is often lower than dealer-arranged financing — especially for used vehicles.

📄 Watch the F&I room

After agreeing on price, you go to Finance & Insurance. This is where add-ons — extended warranties, paint protection, tire and wheel — get slipped in. Every add-on raises your financed amount and total interest. Know what you want before you walk in.

📅 Shorter term ≠ always better

A shorter term means higher monthly payments but less total interest. The right answer depends on your cash flow and what you'd do with the freed-up capital. Run both in this tool — the net worth column shows the real difference.

For educational purposes only. This tool provides illustrative projections based on your inputs. Results are not financial advice. HST treatment of vehicle purchases varies by province — Ontario, BC, AB, QC, and others have different rules. Investment return assumptions are illustrative; actual returns are not guaranteed. Speak with a financial advisor or your lender for advice specific to your situation.

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