Car Loan Calculator in Australia

Car loans have complicated structures that make it hard to understand precisely how much money you’ll be paying back. Our easy-to-use car loan repayment calculator shows you the amount you’ll owe on each payment, as well as the total that you’ll pay over the life of the loan.

How does the car loan repayment calculator work?

This car loan calculator asks for some key pieces of information about your loan, which should be clearly outlined by your provider. These include:

  • Vehicle purchase price

    This is the initial cost of the car on the day you buy it from the dealer. This does not yet include any fees or interest rates.

  • Initial deposit

    If you are trading in an existing car for a new-to-you car, that is similar to an initial deposit, because you are paying a large amount upfront. 

  • Interest rate

    This is the interest that accrues on the loan, which is how the lender makes their money. Our calculator assumes fixed interest.

  • Loan term

    This is the duration of your loan, or the amount of time you have to pay it back. Loan terms are counted in either months or years.

  • Establishment fee

    This is an administrative fee that the lender might add for the act of creating the loan, and is usually spread out across the term.

  • Repayment schedule

    This is how frequent your payments are. Many people align this with their paycheck, typically weekly, fortnightly, or monthly.

Once all of this information is added, the car finance calculator will generate some very important data points for you. The first is your regular repayment amount, which is how much you’ll owe on each car payment. You’ll also learn the total amount of interest you’re projected to see accrue on top of the principal loan amount.

Finally, you’ll get the grand total of how much you’re predicted to pay between the original loan and the interest. As you can see, the car repayment calculator is an essential tool for getting a complete grasp on your financial obligations. The calculator can also be helpful for other types of vehicle financing, such as motorcycle loans, caravan loans, or even boat loans.

Car loan repayment and interest formula

Our car loan calculator is built on what’s known as an amortisation calculation. This equation takes into account the gradual repayment of a loan over a set period of time. Early on the loan, a bigger chunk of your payments will go towards the interest. Then, as you make more payments, you will start paying off the principal more quickly.

Note that car loans, like many vehicle loans, are usually secured loans in the sense that the car itself serves as loan collateral. Car loans are usually at a fixed rate, meaning the percent interest accruing will stay consistent. This car repayment calculator helps you ensure that you’re committing to a payment that is within your means.

Car loan features to consider

A car finance calculator is an excellent way to get a top-level summary of what you need to know, but it’s also important to dig deeper. The popular saying that “the devil is in the details” certainly rings true for car loans: small fees and hidden features can make a huge impact. Here are some smart strategies to get the best deal:

  • Interest rates
    Do yourself a favor and evaluate not just the basic interest rates, but also the comparison rates, which are a more nuanced and holistic version that take into account additional fees and payments.
  • Fees and charges
    Watch out for establishment fees for creating the loan, initial application fees, ongoing account-keeping fees, early repayment fees for paying back the loan too soon, and redraw fees for borrowing additional money.
  • Loan terms
    Think carefully whether you’d prefer a short loan term that gets paid off quicker, or a longer loan term that has smaller monthly payments but possibly a larger overall amount paid.
  • Repayment frequency
    Review your income and your other debts and expenses to figure out if you’d prefer a weekly, fortnightly, or monthly car payment. An office worker with a consistent paycheck will have different priorities than a gig worker who makes different earnings each week.
  • Features
    Dig into whether you can make a balloon payment (large payment at the end of the loan that helps keep monthly payments low) as well as the flexibility for paying off the loan early.

Car loan calculator FAQ

What is a comparison rate?
A comparison rate is a more sophisticated version of an interest rate. It includes additional fees and charges related to the loan, which helps get a truer estimate of the total loan cost.
How much can I borrow for my car loan?
The average car loan in Australia is around $30,000. Below are some typical loan amount ranges:
  • Unsecured loan: $5,000 to $55,000
  • Secured loan: $5,000 to $100,000
  • Green car loan: $5,000 to $150,000
What do I get from using a car loan repayment calculator?
This tool helps estimate the total amount you’ll pay over the life of the loan, as well as the sum for each individual payment. Thus, a car loan calculator is very important for budgeting and personal finance.
Will my car loan rate be affected by my credit score?
Yes, lenders will usually check your credit score. A higher credit score shows a more stable financial history and will lead to a lower interest rate.
Can I get a car loan if I have bad credit?
Yes, you can. Bad credit car loans are usually offered by non-bank lenders and will have higher interest rates compared to standard loans.

Car finance calculator conclusion

Car loan contracts have so many different numbers, dollar amounts, and percentages that it becomes easy to get lost and end up not getting the best deal. Our car loan repayment calculator is the ace up your sleeve that helps you understand your loan in terms of real dollars so that you can budget properly. Use our car finance calculator to make sure you’re taking out a loan that’s right for you.