Car Loan Calculator

Calculate your monthly car loan repayments, total interest, and loan costs in seconds. 100% free, 100% accurate.

Loan Details

$5,000$150,000
$7,000
0%50%
4%15%
$0
0%50%
Monthly Repayment
$0

Loan Breakdown

Loan Amount$0
Total Interest$0
Total Payable$0
Number of Payments60 months

Repayment Breakdown

Principal + Balloon
$0.00
Interest
$0.00

About Car Loan Calculations

Car loans in Australia work on a secured lending model, where the vehicle itself acts as security for the loan. This means if you default on payments, the lender can repossess the vehicle. Because the loan is secured, interest rates are typically lower than unsecured personal loans.

The interest on car loans is calculated using a reducing balance method. This means you only pay interest on the outstanding principal. As you make repayments, the principal reduces, so the interest portion of each payment also reduces over time. Early in the loan, most of your payment goes toward interest. Later, more goes toward principal.

Australian lenders are required to display a comparison rate alongside the advertised interest rate. The comparison rate includes the interest rate plus most fees and charges, giving you a true cost of the loan. Always compare the comparison rate between lenders, not just the headline rate.

Typical car loan rates in 2026 range from 5% to 15%, depending on your credit profile. A credit score above 700 (considered good) will typically qualify you for rates between 5-7% on a new car loan. Average credit (620-699) sees rates of 8-10%. Below 620, you're looking at 10-15% or specialty bad credit lenders. Improving your credit score before applying can save you thousands in interest.

Frequently Asked Questions

How is my car loan repayment calculated?
Car loan repayments are calculated using a standard amortisation formula. The formula takes into account your loan amount (vehicle price minus deposit), interest rate, and loan term. Each monthly payment covers both principal (the amount borrowed) and interest. In the early years, more of your payment goes toward interest. Over time, more goes toward principal.
What is a balloon payment and should I have one?
A balloon payment (also called residual value) is a lump sum due at the end of your loan term. It reduces your monthly repayments but means you owe a large amount at the end. Balloon payments are common for business vehicles and novated leases. Whether you should have one depends on your cash flow needs and whether you plan to trade in or keep the vehicle long-term.
What interest rate can I expect on a car loan?
Car loan interest rates in Australia typically range from 5% to 15%, depending on your credit score, loan amount, vehicle age, and lender. New car loans generally have lower rates (5-8%) than used car loans (7-12%). Bad credit car loans may be 12-15% or higher. A good credit score (700+) will get you the best rates.
What is a comparison rate and why is it different from the interest rate?
The comparison rate includes both the interest rate and most fees charged by the lender, expressed as a single percentage. It gives you a better way to compare loan products. For example, a loan might have a 6% interest rate but a 6.8% comparison rate once fees are included. Always compare the comparison rate, not just the advertised interest rate.
Should I put down a bigger deposit?
A larger deposit (typically 20% or more) reduces your loan amount, lowers your monthly repayments, and reduces total interest paid. It also improves your loan-to-value ratio (LVR), which can help you secure better interest rates and increase approval chances. If you can afford a larger deposit without draining your emergency fund, it's usually a smart move.
Can I pay off my car loan early?
Most car loans in Australia allow early repayment, but some lenders charge early exit fees or early repayment penalties. Check your loan contract for these fees. Making extra repayments throughout the loan term (instead of a lump sum payoff) can often avoid these fees while still saving you thousands in interest.

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