Use our car loan calculator to estimate your monthly repayments, interest costs, and total loan amount. This helps you understand how much your vehicle finance may cost before you apply, so you can plan your budget with confidence.
Understand Your Car Loan Repayment
There are several factors that determine what your car loan repayments will be, so it’s worthwhile having a broker on your side to help you understand your options.
How to use it: click Launch Calculator below, enter your details to see your estimate, then change the figures to compare different scenarios.
Car Loan Calculator
Estimate your car loan repayments based on a specified purchase price, interest rate, term and a balloon (residual) amount if applicable.
How Car Loan Repayments Are Calculated
Car loan repayments are based on the loan amount, interest rate, and loan term. A longer loan term usually lowers monthly repayments but increases the total interest paid over time.
What Affects Your Car Loan Repayments
- Loan amount borrowed
- Interest rate offered by the lender
- Loan term length
- Credit score and financial profile
- Secured vs unsecured car loan structure
Benefits of Using a Car Loan Calculator
- Understand your estimated repayments before applying
- Compare different loan scenarios easily
- Plan your budget with more certainty
- Avoid borrowing more than you can afford
How to Use the Car Loan Calculator
Enter the vehicle price, less any deposit or trade-in, then add an interest rate to test, the loan term and, if you want one, a balloon or residual amount. The car loan calculator then estimates your regular repayment and the total interest over the term.
Secured vs Unsecured Car Loans
A secured car loan uses the vehicle as security. As a result, lenders often offer a lower rate, although many set limits on the age and type of car they accept.
An unsecured car loan, which works like a personal loan, has no security, so the rate is usually higher. Even so, it can suit older cars.
Should You Add a Balloon Payment?
A balloon (or residual) is a lump sum due at the end of the loan. It lowers your regular repayments, but you pay more interest overall because the balance stays higher for longer. Our balloon payment calculator lets you compare different balloon amounts.
Worked Example: Term and Balloon Compared
For illustration only, not a current rate. Take a hypothetical $40,000 car loan at 8.00% p.a., ignoring fees:
- Five years, no balloon: about $811 a month, with total interest of about $8,660.
- Seven years, no balloon: about $623 a month, but total interest rises to about $12,370.
- Five years with a 30% balloon ($12,000): about $648 a month and total interest of about $10,860, plus the $12,000 due at the end.
Novated Leases in Brief
A novated lease is an arrangement between you, your employer and a finance company, where lease payments and running costs come out of your salary. Our guide to EV finance and cost of ownership explains how it works, and the ATO explains the fringe benefits tax exemption for eligible electric cars. Speak to your accountant or tax adviser about tax.
How a Car Loan Affects Your Home Loan Borrowing Power
Planning to buy a home soon? Think about the timing of a car loan. Lenders count your car loan repayment as an ongoing commitment when they assess a home loan, so it reduces how much you can borrow.
Where possible, consider arranging home loan pre-approval before taking on new car finance. Our borrowing power calculator gives a rough idea.
What the Car Loan Calculator Does Not Include
The calculator leaves out fees and insurance. In addition, your rate depends on your credit history, the car and the lender. Moneysmart’s car loans guide is a useful checklist.
Ingram Financial is a mortgage and finance broker based in Bangor, NSW. We help borrowers across the Sutherland Shire, and we also work with clients right around Australia by phone and video.
Car Loan Frequently Asked Questions
A car loan calculator provides an estimate based on the inputs you enter. Final repayments may vary depending on lender assessment.
Repayments usually include principal and interest, and may include fees depending on the lender.
Yes, you can reduce repayments by increasing the loan term, improving your credit profile, or increasing your deposit or having a balloon payment.
More Questions About Car Finance
A longer term lowers repayments but increases total interest, so many people choose the shortest term they can comfortably afford.
Yes, many lenders offer car finance to self-employed borrowers and ABN holders, although the documents they ask for vary. We can help you find a suitable option.
Compare Car Loans With a Broker
We compare car finance from a range of lenders and explain your options in plain English.
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation.
Need Some Help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.