Car down payment calculator
How much should you put down on a car? Enter the price, the interest rate and the loan length, and see the monthly payment, the amount you borrow and the interest you pay at each down payment from nothing to 25 percent, next to your own figure.
Your numbers
These are example numbers. Replace them with yours and the table updates straight away.
What you need to cover, with tax and fees included.
Shown as its own row.
See how long you would owe more than the car is worth
Pick the car and the table adds a column: for each down payment, how many months the loan stays above what the car is worth, using how fast that model's price really falls.
What each down payment does
No down payment ($0)$699.38 a month
Borrow $40,000, $10,355 in interest
5% down ($2,000)$664.41 a month
Borrow $38,000, $9,838 in interest, $518 less than no down payment
10% down ($4,000)$629.44 a month
Borrow $36,000, $9,320 in interest, $1,036 less than no down payment
15% down ($6,000)$594.47 a month
Borrow $34,000, $8,802 in interest, $1,554 less than no down payment
20% down ($8,000)$559.50 a month
Borrow $32,000, $8,284 in interest, $2,071 less than no down payment
25% down ($10,000)$524.53 a month
Borrow $30,000, $7,766 in interest, $2,589 less than no down payment
Your down payment ($3,000)$646.92 a month
Borrow $37,000, $9,578 in interest, $777 less than no down payment
| Down payment | You borrow | Monthly payment | Total interest | Interest saved |
|---|---|---|---|---|
| No down payment ($0) | $40,000 | $699.38 | $10,355 | - |
| 5% down ($2,000) | $38,000 | $664.41 | $9,838 | $518 |
| 10% down ($4,000) | $36,000 | $629.44 | $9,320 | $1,036 |
| 15% down ($6,000) | $34,000 | $594.47 | $8,802 | $1,554 |
| 20% down ($8,000) | $32,000 | $559.50 | $8,284 | $2,071 |
| 25% down ($10,000) | $30,000 | $524.53 | $7,766 | $2,589 |
| Your down payment ($3,000) | $37,000 | $646.92 | $9,578 | $777 |
Your $3,000 down payment means borrowing $37,000 (93% of the price), and saves about $52.46 a month against putting nothing down.
A small down payment means you can owe more than the car is worth in the first years, because new cars lose value fastest early on. A larger one gives you a cushion.
An estimate with interest worked out monthly. A down payment is not the only use for the money: keep an emergency fund before you put everything into the car.
Keep going with Uobo
Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:
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On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.
How it works
A down payment is money you pay up front, so you borrow less. The monthly payment is worked out on what is left, using your rate and loan length. The table repeats that for each down payment so you can compare them side by side.
The interest saved column compares each row with putting nothing down. The share you borrow, as a percent of the price, shows how much cushion you have if the car loses value quickly, as new cars often do in the first years.
Your privacy comes first. What you enter stays on your device unless you choose to text it to Uobo.
Example: a $40,000 car at 7.9% over 72 months
With nothing down the payment is $699.38 a month and the interest is $10,355. Putting 20% ($8,000) down lowers the payment to $559.50 a month, cuts the interest to $8,284 and saves $2,071 in interest.
What this does not cover
- It is an estimate. Interest is worked out monthly, and a real contract may calculate it a little differently.
- Enter the total price with tax and fees included. This tool does not add sales tax; the payment calculator does.
- A bigger down payment is not always better. Keep an emergency fund, and compare it with paying down any debt that charges a higher rate.
Common questions
How much down payment should I put on a car?
Many lenders and advisers suggest 10 to 20 percent of the price, and enough that you do not owe more than the car is worth. The right amount depends on your savings and your other debts.
Do I need a down payment to buy a car in Canada?
Not always. Some lenders will approve a loan with nothing down. You will pay more interest, and you are more likely to owe more than the car is worth for a while.
Does my trade-in count as a down payment?
Yes. The value of your trade-in works like cash toward the price. In many provinces it also lowers the sales tax you pay, because tax is charged on the price after the trade-in.
Does a bigger down payment lower my interest rate?
It can. A lender sees less risk when you borrow less against the car, so a larger down payment sometimes earns a better rate. It always lowers the interest you pay in dollars.