australia • AUD

Car Loan Calculator (Australia)

Instantly calculate monthly repayments, total interest, and loan cost based on Australian car loan rates. Compare balloon payments, fees, and extra repayments – all in AUD.

By Team GlobalCalqulate · About our editorial standards

Loan details

Car price

Deposit

Trade-in value

Interest rate (p.a.)

Interest method

Loan term5 years

Financial Disclaimer: This result is an educational estimate produced by applying a standard formula to the figures you entered. It is not an offer, a quotation, or financial advice: real costs and returns depend on a provider's pricing, fees and underwriting, and on circumstances this calculator does not collect. Confirm the figures with the provider or a qualified adviser before acting on them. Full disclaimer.

Sources & methodology

Formula:: Scheduled repayment (principal and interest)
Reference:: Moneysmart (Australian Securities and Investments Commission)

Calculation type: Exact calculation. Figures are taken from Moneysmart (Australian Securities and Investments Commission) — see sources below.

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

PMT = P × [ i(1+i)^n ] / [ (1+i)^n − 1 ]

The standard amortisation formula, applied to the full amount borrowed over the full term.

Repayment with a balloon (residual)

PMT = [ P − B(1+i)^−n ] × [ i / (1 − (1+i)^−n) ]

A balloon is a lump sum still owing at the end of the term. The present value of that lump sum is removed from the amount being amortised, which is why a balloon lowers the repayment without lowering what you owe in total.

Amount borrowed

P = car price − deposit − trade-in

Deposit and trade-in both reduce the financed amount.

Variable definitions

Symbol	Meaning	Unit
P	Amount borrowed. price less deposit and any trade-in	AUD
i	Periodic interest rate. annual rate ÷ payments per year	ratio
n	Number of repayments. term × payments per year	count
B	Balloon / residual. lump sum owing at the end of the term, entered as an amount or a percentage	AUD

Step-by-step calculation

1. Enter the vehicle and what you are putting in
Price, deposit and trade-in give the amount financed.
2. Set rate, term and frequency
Repayments can be weekly, fortnightly or monthly; the term converts to the matching number of periods.
3. Add fees, extra repayments and any balloon
Upfront and ongoing fees are simulated alongside the repayments rather than ignored.

Limitations

The interest rate you enter is held constant for the whole term. Australian variable rates move with RBA policy and lender margins, so a real loan will not follow a single-rate projection.
A balloon reduces the repayment but not the debt. At the end of the term the balloon must be paid, refinanced or covered by selling the car — and if the car is worth less than the balloon, the shortfall is yours.
The comparison rate a lender must quote also folds in prescribed fees on a standard loan size. Your own fees, entered here, will not reproduce a lender’s advertised comparison rate.
Stamp duty, registration, insurance and dealer charges are not included unless you add them to the price.

This page is educational. It applies a standard formula to the figures you enter and shows the arithmetic behind the result. It is an estimate, not an offer, a quotation or financial advice: real costs depend on the provider's pricing, fees and underwriting, and on circumstances this calculator does not collect.

Sources & references

Budgeting, loans and managing money — Moneysmart (Australian Securities and Investments Commission)

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

What is a balloon payment and how does it affect my loan?

Tap to view the answer

A balloon payment is a large final amount due at the end of the loan term. It lowers regular repayments but usually increases total interest paid.

What is an ASIC comparison rate and how does it apply to car loans?

Tap to view the answer

ASIC requires lenders to disclose a comparison rate alongside the stated interest rate. The comparison rate includes fees and charges to show true cost. This car loan calculator uses interest rate; always check the lender's official comparison rate before committing.

What is the APRA serviceability buffer and how does it affect car loans?

Tap to view the answer

APRA requires lenders to apply a 3% serviceability buffer to variable rates when assessing repayment capacity. This buffer stress-tests your ability to cope with rate increases. Even if current rates are low, lenders verify you can repay if rates rise, reducing default risk.

Does making a larger deposit reduce my repayments?

Tap to view the answer

Yes. A larger deposit reduces the amount you borrow, which usually lowers repayments and total interest.

Are results from this calculator legally binding?

Tap to view the answer

No. Results are estimates only and should not be considered financial advice or a loan offer.

Need more help? Contact support or email globalcalqulate@gmail.com

We typically reply within 24–48 hours.

More Australia calculators

All Australia calculators

Understanding Your Results

Monthly Repayment
Your regular payment amount. Can you comfortably afford this alongside other expenses? Consider using the 30% rule of thumb.
Total Interest
The total cost of borrowing. A 1% rate reduction on a $40,000, 5-year loan saves about $1,000 in interest.
Loan Term Impact
Shorter terms (3-4 years) cost less interest but have higher monthly payments. Find the balance that fits your budget.
Balloon Payment
If you chose a balloon, this lump sum is due at the end. Make sure you have a plan to pay it – refinance, sell, or pay cash.

Key Tips

✓
Compare car loan rates from multiple lenders – a 0.5% difference saves hundreds over the loan term.
✓
Shorter loan terms (3–4 years) significantly reduce total interest paid.
✓
Extra repayments can lower overall loan cost – even $50/month makes a difference.
✓
Watch for hidden fees: establishment fees, monthly service fees, and early repayment penalties.
✓
A larger deposit reduces interest and may get you a better rate.
✓
Consider dealership financing vs bank loans – compare both before deciding.

Car Loan Calculator Australia – Complete Guide (2026)

Daily Interest vs Frequency Interest

This calculator offers two interest methods. Daily interest charges on the outstanding balance every day, so an extra repayment reduces interest immediately, from the next day. Frequency interest charges once per repayment period on the balance at the start of that period, so an extra repayment doesn't reduce interest until the next period begins. Most Australian car loans use daily interest — check your loan contract to confirm which applies to you.

Balloon Payments: Lower Repayments, Bigger Final Bill

A balloon (or residual) payment is a lump sum left owing at the end of the loan instead of being paid off through regular instalments. Setting a 20% balloon on a $35,000 loan means only $28,000 is amortised over the term, which lowers each repayment — but the remaining $7,000 is due in full at the end, usually refinanced, paid in cash, or covered by selling the car.

Why Repayment Frequency Changes the Total Interest

Paying fortnightly instead of monthly (26 payments a year instead of 12) reduces the average outstanding balance faster, so more of your annual repayment goes to principal sooner. On the same loan and rate, fortnightly repayments generally produce a lower total interest cost than monthly, even though the underlying amount repaid per year is similar.

What Actually Moves Your Repayment Amount

Four things drive the number this calculator shows: how much you borrow (car price minus deposit and trade-in), the interest rate, the loan term, and any balloon amount. A larger deposit or trade-in directly reduces the amount financed and therefore both the repayment and the total interest paid over the loan.

Fees Are Separate From Interest

An upfront establishment fee and an ongoing monthly account-keeping fee both add to your total cost without appearing in the advertised interest rate. This calculator adds them to the total payable figure separately from interest — always check a lender's comparison rate, which is designed to fold standard fees into a single rate you can compare across lenders.

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

PMT = P × [ i(1+i)^n ] / [ (1+i)^n − 1 ]

The standard amortisation formula, applied to the full amount borrowed over the full term.

Repayment with a balloon (residual)

PMT = [ P − B(1+i)^−n ] × [ i / (1 − (1+i)^−n) ]

Amount borrowed

P = car price − deposit − trade-in

Deposit and trade-in both reduce the financed amount.

Variable definitions

Symbol	Meaning	Unit
P	Amount borrowed. price less deposit and any trade-in	AUD
i	Periodic interest rate. annual rate ÷ payments per year	ratio
n	Number of repayments. term × payments per year	count
B	Balloon / residual. lump sum owing at the end of the term, entered as an amount or a percentage	AUD

Step-by-step calculation

1. Enter the vehicle and what you are putting in
Price, deposit and trade-in give the amount financed.
2. Set rate, term and frequency
Repayments can be weekly, fortnightly or monthly; the term converts to the matching number of periods.
3. Add fees, extra repayments and any balloon
Upfront and ongoing fees are simulated alongside the repayments rather than ignored.

Limitations

The interest rate you enter is held constant for the whole term. Australian variable rates move with RBA policy and lender margins, so a real loan will not follow a single-rate projection.
A balloon reduces the repayment but not the debt. At the end of the term the balloon must be paid, refinanced or covered by selling the car — and if the car is worth less than the balloon, the shortfall is yours.
The comparison rate a lender must quote also folds in prescribed fees on a standard loan size. Your own fees, entered here, will not reproduce a lender’s advertised comparison rate.
Stamp duty, registration, insurance and dealer charges are not included unless you add them to the price.

Calculator inputs

Loan details

Repayment options2 options

Fees2 options

Balloon / residual (optional)1 option

Your results

Sources & methodology

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

Repayment with a balloon (residual)

Amount borrowed

Variable definitions

Step-by-step calculation

Limitations

Sources & references

What is a balloon payment and how does it affect my loan?

What is an ASIC comparison rate and how does it apply to car loans?

What is the APRA serviceability buffer and how does it affect car loans?

Does making a larger deposit reduce my repayments?

Are results from this calculator legally binding?

Related calculators

More Australia calculators

Calculator inputs

Loan details

Repayment options2 options

Fees2 options

Balloon / residual (optional)1 option

Your results

Sources & methodology

How to Use This Calculator

Example Car Loan Calculation (Australia)

Understanding Your Results

Key Tips