How to use the Car Loan Calculator
- 1 Enter the car price, including on-road costs.
- 2 Enter your deposit or trade-in value.
- 3 Enter the interest rate and choose the term.
- 4 Add any fees rolled into the loan and an optional balloon.
Worked example
A $40,000 car with a $5,000 deposit, $400 of fees, 8.5% over 5 years. You borrow $35,400. The monthly repayment is about $726.29. Interest comes to about $8,177, so you repay about $43,577 over the five years. Paying a bigger deposit or choosing a shorter term would cut the interest.
Features
Balloon payments
See how a balloon lowers repayments but leaves a lump sum at the end.
Fees included
Establishment fees added to the loan are counted.
Fortnightly guide
A fortnightly equivalent for people paid fortnightly.
When to use it
Dealer finance
Check a dealer's quoted repayment.
New or used
Compare loans for new and used cars.
Term choice
Compare 3, 5 and 7-year terms.
Novated leases
Get a basic comparison before looking at a novated lease.
Frequently asked questions
What is a comparison rate?
A rate that includes most fees and charges, which lenders must show. Compare loans by comparison rate, not just the headline rate.
What is a balloon payment?
A lump sum due at the end of the loan. It lowers your repayments but means you owe a large amount at the end.
Secured or unsecured?
A secured car loan uses the car as security and usually has a lower rate. Unsecured loans cost more.
How long can a car loan be?
Most lenders offer one to seven years. Longer terms lower repayments but increase total interest.
Can I pay extra?
Many loans allow extra repayments, but some fixed-rate loans charge break fees. Check the terms.
Do I need comprehensive insurance?
Lenders usually require comprehensive insurance on a secured car loan for the full term.
Is a novated lease cheaper?
A novated lease is paid from pre-tax salary and can include running costs. Electric cars under the FBT exemption can make it much cheaper, but compare the total cost and the residual payment carefully.
Should I choose a fixed or variable rate?
Most car loans have a fixed rate, which keeps repayments the same for the whole term. Variable rates can fall or rise and often allow extra repayments without fees.
Is dealer finance more expensive?
Sometimes. Dealers may offer low headline rates with high fees or a balloon, while banks and credit unions may have lower comparison rates. Compare the total repaid.
How much can I borrow?
Lenders look at your income, expenses, debts and credit history. Many prefer repayments to stay within a comfortable share of take-home pay.
What happens if I cannot pay?
Contact your lender early and ask for hardship help. Under the National Credit Code lenders must consider requests to change repayments when you face financial hardship.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated