Finance & property Australia
Car Loan Calculator Australia
A car loan's repayment depends on the amount, rate, term and any balloon left to pay at the end. This calculator works out the repayment, the total interest and fees, and the true cost of financing the car.
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Optional. A lump sum still owing at the end of the term.
Monthly repayment
—Total interest
—
Total fees
—
Total paid over the term
—
Balloon owing at the end
—
Cost of finance as a share of the loan
—
The full cost
How do I calculate car loan repayments?
Use the loan repayment formula: a $40,000 loan at 8.5% over 5 years costs $820.66 a month. A balloon payment of 30% at the end lowers the monthly repayment to $659.46, but you still owe the balloon and pay interest on it throughout, so the total cost is higher.
Secured and unsecured
A secured car loan uses the car as collateral and usually has a lower rate than an unsecured personal loan. Rates also depend on the age of the car, your credit history and whether the loan is for a business or private use.
Check whether the lender charges early repayment fees: paying a car loan off early is usually a good use of spare cash.
Balloon payments
A balloon lowers your repayments and is common in novated leases, where the residual is set by the ATO. For other loans, the balloon is whatever you agree. It is a debt you must clear at the end, so plan how you will.
To see the effect of a novated lease, use the novated car lease calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
repayment = (loan − balloon ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n), r = rate ÷ 12, n = monthstotal interest = repayments × n + balloon − loantotal cost of finance = interest + establishment fee + monthly fees × n
A balloon makes the repayment look smaller by pushing part of the debt to the end, but the interest on it is charged every month, so total interest rises. It also leaves you owing a lump sum when the car is worth less, which you must pay, refinance or sell the car to clear.
The account fee matters more on a small loan. A $10 monthly fee on a $10,000 loan over three years adds about $360 on top of interest.
A worked example
A $40,000 loan at 8.5% over 5 years with a $400 establishment fee and no balloon.
- Monthly repayment$820.66
- Total repayments$49,240
- Total interest$9,240
- Establishment fee$400
- Total cost of finance$9,640
$820.66 a month and $9,640 in interest and fees over 5 years.
Compare the comparison rate, which includes fees, when shopping lenders.
Comparison rate
Australian lenders must show a comparison rate that bundles the interest rate and most fees into one figure, based on a standard loan. Use it to compare offers, but remember it assumes a specific amount and term, so your own cost may differ.
What it leaves out
Insurance, registration, running costs and depreciation are not in the figures. Dealer finance can include commissions that raise the rate, so compare it with a direct lender.
What this calculator does not do
- Fixed rate and level repayments
- No early repayment or break costs
- Fees are as you enter them
- A balloon is assumed to be paid at the end
Common questions
How do I calculate car loan repayments?
Use the amortisation formula, or enter your loan, rate and term above. A $40,000 loan at 8.5% over 5 years is about $821 a month.
What is a balloon payment?
A lump sum still owing at the end of the term. It lowers repayments but raises total interest.
Is a longer car loan better?
It lowers the repayment but increases total interest, and the car may be worth less than the loan for longer.
What is a comparison rate?
A rate that includes fees as well as interest, so loans can be compared on one figure.
Should I pay a car loan off early?
Usually yes, if there are no early repayment fees, because it saves interest.
Where these numbers come from
- MoneySmart — car loans Independent guidance on car finance and comparison rates
- MoneySmart — home loans ASIC's independent guidance on borrowing, repayments and refinancing
Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.
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