Calculators
Car loan calculator
Work out what a car will actually cost to finance, including a balloon payment and the fees lenders add on top.
Estimates for planning only.
Estimated monthly repayment
$624.15
Amount financed
$30,400.00
Total interest
$6,149.22
Total fees
$1,300.00
Total cost of the car
$42,449.22
Before you sign at the dealership
Dealer finance is convenient but rarely the cheapest money on the table, and the repayment you’re quoted often hides a balloon. On this loan you’d pay $6,149.22 in interest and $1,300.00 in fees. Getting the rate down a point is usually worth more than stretching the term.
How is a car loan repayment calculated?
A car loan is amortised the same way a mortgage is: each repayment covers the interest accrued since the last one, and whatever is left reduces the balance. The repayment is set so the balance reaches zero — or reaches the balloon amount — exactly at the end of the term. Because interest is charged on the reducing balance, the early repayments are mostly interest and the later ones are mostly principal, which is why paying a loan out early saves less than people expect.
What is a balloon or residual payment?
A balloon, also called a residual, is a lump sum left owing at the end of the term. Setting one lowers the regular repayment because you are only amortising part of the loan, but you still owe the balloon on the final day and interest is charged on it the whole way through. When the balloon falls due you either pay it out, refinance it, or sell the car and settle up. This calculator expresses the balloon as a percentage of the car price, which is how dealer and novated finance quotes are structured.
Will a balloon leave me owing more than the car is worth?
It can, and this is the main risk the structure carries. Cars lose value quickly in the first few years, while a balloon holds your loan balance high. If the balloon is larger than the car is worth when it falls due, you have to find cash to cover the gap or roll it into your next loan. This calculator flags that situation by comparing your balloon against a rough resale estimate based on 15% depreciation a year.
What fees do car loans charge?
Most secured car loans carry a one-off establishment or application fee, typically a few hundred dollars, and an ongoing monthly account fee of around $10 to $15. Some lenders also charge for early payout, for PPSR registration of their security interest over the vehicle, or for changing the repayment date. This calculator adds the establishment fee to the amount financed and adds the account fee to each repayment, which is how most lenders actually apply them.
Should I choose weekly, fortnightly or monthly repayments?
The difference is smaller than most advertising suggests. Paying weekly reduces the balance slightly sooner, so a little less interest accrues, but on a five year car loan the saving is usually tens of dollars rather than hundreds. The stronger argument for weekly or fortnightly is cash flow: aligning repayments with your pay cycle makes the loan easier to service. This calculator converts the monthly account fee across frequencies so the comparison stays honest.
Is dealer finance cheaper than going to a lender?
Not usually. Dealer finance is convenient and is sometimes subsidised on specific models, but the rate is often set with a margin on top of the wholesale rate, and the quoted repayment can be flattered by a long term or a balloon you did not ask for. It is worth comparing the total cost, not the repayment, against what a broker or your own lender can arrange. A percentage point on a $35,000 loan over five years is roughly a thousand dollars.
What this calculator does not include
This estimates repayments on a secured car loan at a fixed rate you enter. It does not include comprehensive insurance, registration, stamp duty on the vehicle purchase, extended warranties or gap insurance, dealer delivery charges, or any early payout fee. It also does not model a comparison rate or novated lease packaging, and the rate shown by default is indicative only — the rate you are offered depends on your credit history, the age of the car and the lender.
Getting the rate right matters more than the term
A percentage point on a car loan is worth more than most people assume, and dealer finance is rarely the cheapest option on the table. Here's how car finance works and what a broker can do with it.
Read about car loansTalk this through with a broker
Send your details and we'll come back to you with what these numbers mean for your borrowing, usually within one business day.
What you worked out
Monthly repayment
$624.15
- Car price
- $35,000
- Deposit
- $5,000
- Interest rate
- 7.5%
- Loan term
- 5 years
- Amount financed
- $30,400.00
- Total interest
- $6,149.22
What this means for you
- That's $624.15 a month, with $6,149.22 in interest over the life of the loan. Lenders price car finance off your credit history and the age of the car, so the rate you're quoted can move a long way from the advertised one.