Car Loan Calculator

Calculate your repayments, total interest, and balloon payment impact for any Australian car or vehicle loan.

Vehicle price

The on-road price of the vehicle including dealer delivery and registration.

Deposit

Cash deposit or trade-in value. A larger deposit reduces your loan amount and total interest.

Net loan amount: $30,000(14% deposit)

Annual interest rate

Car loan rates in Australia typically range from 5% to 15% depending on lender, loan type, and credit profile. Always compare the comparison rate.

Loan term

Longer terms mean lower repayments but more total interest. Most Australian car loans are 3–5 years.

Repayment frequency

More frequent payments marginally reduce total interest by reducing your balance faster.

Balloon payment

Optional lump sum due at end of loan term. Lowers regular repayments but must be refinanced or paid in full at maturity.

Principal and interest repayments only. Excludes fees, stamp duty, and comprehensive insurance. General guidance only — not financial advice.

Loan balance over time

How your vehicle loan reduces — hover to inspect each year

Remaining balance

Balance declines slowly at first as early repayments are mostly interest, then accelerates as more of each payment reduces the principal.

Interest vs principal breakdown

Cumulative interest paid vs principal repaid — hover to inspect each year

Cumulative interestPrincipal repaid

Most of the interest cost is paid in the early years. The two lines cross when you have repaid more principal than you have paid in interest.

Car finance in Australia

How car loan repayments are calculated

Your repayment is calculated using standard loan amortisation: each payment covers the interest accrued that period plus a slice of the principal. Early payments are mostly interest; later payments are mostly principal. Your deposit directly reduces the loan amount, cutting both your regular repayment and the total interest you pay.

What is a balloon payment?

A balloon payment (also called a residual) is a lump sum deferred to the end of your loan term. It reduces your regular repayments but must be paid in full at maturity — either from savings, by refinancing, or by selling the vehicle. Balloon payments are common in novated leases and dealer finance. The ATO sets maximum residual values for novated leases based on vehicle effective life.

Secured vs unsecured car loans

Most Australian car loans are secured — the vehicle acts as collateral, which is why lenders offer lower rates than unsecured personal loans. If you default, the lender can repossess the car. Secured car loans are typically 1–3% lower in rate than equivalent unsecured personal loans. Older vehicles (generally 10+ years) may not qualify as collateral for secured loans.

The comparison rate — what it really costs

The headline interest rate tells you what's charged on the balance. The comparison rate includes most fees and charges, expressed as a single annual rate, making it easier to compare products. A loan at 5.99% with high fees can cost more than one at 7.5% with no fees. Always ask your lender for the comparison rate before signing any car finance contract.

Frequently asked questions

What is the average car loan interest rate in Australia?: Car loan rates in Australia typically range from around 5% to 15% p.a. depending on your credit profile, whether the loan is new or used vehicle finance, and the lender. New car loans from manufacturers and banks often start from 5–7% for qualified borrowers. Used car loans and personal loans for vehicles are usually 8–15%. Always compare the comparison rate, not just the headline rate.
How much deposit do I need for a car loan in Australia?: There is no minimum deposit required for most Australian car loans — you can borrow 100% of the vehicle price. However, a deposit of 10–20% reduces your loan amount, lowers your repayments, and can improve the interest rate offered. A larger deposit also reduces the risk of being 'upside-down' on your loan (owing more than the car is worth), which happens quickly as new cars depreciate.
Should I use dealer finance or get my own car loan?: Dealer finance is convenient but often more expensive. Dealers earn commission on finance products, which can mean higher rates or more fees. Getting pre-approved through a bank, credit union, or online lender before visiting a dealer gives you a benchmark rate and negotiating power. Manufacturer finance deals (e.g. 0% for 36 months) can be genuinely competitive but may have conditions like a required deposit or balloon payment.
Is it worth getting a balloon payment on a car loan?: A balloon payment lowers your regular repayments, which can make a more expensive car seem affordable. However, you end up paying more total interest over the loan term, and you must have a plan for the balloon at maturity. If you plan to trade in or sell the car before the balloon is due, this can work well. If you're unsure, avoid a balloon — a standard loan with lower repayments from a longer term is more flexible.
Can I pay off a car loan early in Australia?: Most variable-rate car loans allow early repayment without penalty. Fixed-rate car loans often have break fees or early termination charges — sometimes equal to the remaining interest. Check your loan contract or product disclosure statement carefully. Making extra repayments on a variable car loan is one of the fastest ways to reduce the total interest you pay.
Does a car loan affect my home loan borrowing capacity?: Yes. Lenders include your car loan repayment as a committed expense when assessing mortgage serviceability. A $30,000 car loan at 8% over 5 years costs about $608/month, which can reduce your home loan borrowing capacity by $80,000–$120,000 depending on your income and other commitments. Paying off a car loan before applying for a mortgage can significantly improve your borrowing power.