Vehicle payment
Sticker price is the smallest part of what a car costs. This adds provincial sales tax, the interest on the term you actually chose, and the fuel, insurance and maintenance that arrive every month regardless.
- Finance / lease / cash
- Sales tax by province
- Five-year total cost
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Finance, lease or cash
| FinanceIncludes $7,786 interest, less $17,640 of equity at year five | $63,406 |
|---|---|
| LeaseNo resale credit — the car goes back | $73,766 |
| Cash$47,460 paid up front, less $17,640 resale | $55,620 |
| Running costs in eachIdentical across all three, and often the largest line | $25,800 |
Where the money goes
- Vehicle price$42,000
- HST 13%$5,460
- Interest$7,786
- Running costs$25,800
What the term length costs
| 24 months$3,086 of interest over the term | $1,856/mo |
|---|---|
| 36 months$4,619 of interest over the term | $1,280/mo |
| 48 months$6,186 of interest over the term | $993/mo |
| 60 months$7,786 of interest over the term | $821/mo |
| 72 months$9,419 of interest over the term | $707/mo |
| 84 months$11,085 of interest over the term | $626/mo |
| 96 months$12,785 of interest over the term | $565/mo |
Sales tax uses the combined 2026 rate for your province — HST 13% — applied to the price after any trade-in credit, which is how a dealer transaction works in most of Canada.
Vehicle loans compound monthly rather than semi-annually, unlike Canadian mortgages, so the payment is calculated with monthly compounding at your stated rate.
Lease payments are modelled as depreciation over the term plus a finance charge on the average of the capitalised cost and the residual, then taxed. Residual assumptions run from 66.0% at 24 months to 40.0% at 60. Real residuals are set by the manufacturer and vary by model.
Five-year totals credit an estimated resale value of 42% of the original price where you own the car, and no resale value on a lease.
These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.
The 20/4/10 rule turned into a maximum sticker price and a scorecard.
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