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Australian Car Loan Calculator
Calculate your car loan repayments, compare scenarios side-by-side, and understand the true cost of your finance. Uses the interest rate you enter.
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Enter your vehicle price, deposit and loan term — our calculator shows instant repayments.
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Review weekly, fortnightly or monthly options — compare balloon vs standard loans.
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Analyse total costs, benchmark your rate and compare two loans side-by-side.
✓ New & Used Cars✓ Balloon Payment✓ Extra Repayments✓ Loan Comparison✓ Your Quoted Rate
Calculations use the rate you enter. This page shows no lender offers · RBA cash rate checked 14 October 2026Sources: RBA · ASIC MoneySmart
🧮 Calculate Repayment
💡 What Can I Borrow?
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Car Loan Calculator — Australia 2026
$
$
Enter the rate from your written quote. Always compare the comparison rate.
Per ASIC MoneySmart, typical terms range 1–7 years. Shorter terms save interest.
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Weekly
Fortnightly
Monthly
Include Balloon Payment?
A lump-sum due at end of term — reduces repayments but increases total interest
Balloon payment: $0
Business / Work Use?
ATO deductibility notes will be shown in results
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What Can I Borrow? — Budget Calculator
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$
Max Loan Amount
$0
Max Vehicle Budget
$0
loan + deposit
📋 ATO Deductibility: As this vehicle is used for business purposes, you may be able to claim the business-use proportion of loan interest as a tax deduction. The two ATO-approved methods are the logbook method (actual % business use) and the cents-per-kilometre method (up to 5,000km at 88c/km for 2025-26). ATO motor vehicle expenses guide →
📋 Summary
📅 Schedule
📈 Interest
⚖️ Rate Benchmark
🔄 Compare Loans
Full Cost Breakdown
Item
Amount
Notes
Per ASIC MoneySmart, always compare the comparison rate — not just the advertised rate. The comparison rate includes most fees and reflects the true annual cost.
💰 Extra Repayment Calculator — How Much Could You Save?
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Assumes extra repayment applied consistently. Applies to variable rate loans. Fixed rate loans may have repayment limits. Source: ASIC MoneySmart.
Annual Repayment Schedule
Year
Annual Repayments
Principal Paid
Interest Paid
Balance Remaining
Net Loan Amount
$0
Total Interest Paid
$0
Interest vs Principal — Year by Year
Year
Opening Balance
Principal Paid
Interest Paid
Closing Balance
Early in the loan, a higher proportion of each repayment goes to interest — the standard amortisation effect. Making extra repayments early has the greatest impact on total interest saved because the balance (and therefore interest charged) is highest.
Your Rate
0%
Your car loan
RBA Cash Rate
4.60%
From 30 Sep 2026
RBA cash rate 4.60% from 30 September 2026 (RBA). Car loans are priced above the cash rate; this page does not show lender averages. Always ask lenders for their comparison rate — per ASIC, this is the true cost measure required by law.
Loan A — Your Current Loan
Loan B — Alternative Loan
Metric
Loan A (Yours)
Loan B
Difference
Both loans use the same loan amount and frequency. Always request a comparison rate from each lender before deciding.
📄 Keep a copy of this result
This site does not store or email your figures. Use your browser's print option and choose “Save as PDF” to keep them.
🏦 Compare Before You Sign Dealer Finance
Get written quotes from at least three lenders, including your own bank, and compare them on the comparison rate before you visit the dealer. Knowing your budget lets you negotiate the car price separately from the finance.
Source: RBA cash rate target, checked 14 October 2026. Lenders set car loan rates themselves, so use the rate you are actually quoted.
Why are car loan rates higher than the RBA cash rate?
The RBA cash rate (4.60% from 30 September 2026) is the base cost of funds between banks. Car loan rates sit higher because lenders add a margin for credit risk, operating costs and profit. For example, on a $30,000 loan over 5 years, 8.5% instead of 7.5% adds about $860 in total interest. ASIC MoneySmart car loans guide →
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Car Loan Types in Australia — Secured, Unsecured, Dealer & More
Per ASIC MoneySmart, Australian borrowers have several car finance options — each with different rates and structures.
Loan Type
Security
Best For
Secured Car Loan Most common personal vehicle loan
Vehicle
New or near-new vehicles; best rate for most borrowers
Unsecured Personal Loan No collateral required
None
Older vehicles that don't qualify as security; flexible use
Dealer Finance In-house via dealership
Vehicle
Promotional rates on new vehicles — always compare total cost
Chattel Mortgage Business / ABN holders
Vehicle
Business owners wanting to claim GST, depreciation and interest
Novated Lease Via employer salary packaging
Vehicle
Employees with salary packaging — tax-effective for higher earners
🌱 Ask About EV Discounts
🚗 Get Pre-Approved First
🏦 Compare Before You Sign
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Car Finance Tips for Australian Buyers
Get Pre-Approved First
Pre-approval from a bank gives you a benchmark rate before visiting the dealer. Dealers often add margin to in-house finance — knowing your rate gives you leverage.
New vs Used Rates
New car loans usually attract lower rates than used. Lenders see new vehicles as lower risk due to warranty and known condition. Factor this into your total cost comparison.
Balloon Payments — Beware
Balloon payments reduce monthly repayments but increase total interest. Only use balloons if you plan to sell or trade the car before the balloon falls due.
EV Green Loans
Some lenders offer discounted rates for electric and plug-in hybrid vehicles. Ask for the comparison rate and enter it above to see the saving.
Comparison Rate Is Key
Per ASIC, the comparison rate includes fees and is the true annual cost. A low advertised rate with high fees can cost more than a slightly higher rate with no fees.
PPSR Check — $2 Well Spent
Before buying used, run a PPSR check at ppsr.gov.au to ensure the car isn't under finance or listed as stolen. A $2 check could save you tens of thousands.
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Car Loan FAQ — Australia 2026
How do I know if a car loan rate is good?
Rates vary with your credit history, loan term, vehicle age, security and the lender, so there is no single “good” number. Get written quotes from several lenders, including your own bank, and compare their comparison rates, which include most fees. Enter each rate in the calculator above to see the difference in repayments and total interest.
How much can I borrow for a car loan in Australia?
Most Australian lenders offer car loans from $5,000 to $100,000 or more. The amount you qualify for depends on your income, credit score, existing debts and the vehicle's value. Lenders typically won't lend more than the vehicle's market value. For vehicles over 10 years old, many lenders restrict lending or charge higher rates — an unsecured personal loan may be a better option.
Should I get a car loan from a dealer or a bank?
Bank and online lender finance is almost always cheaper than dealer finance in Australia. Dealers receive a margin from the lender built into your rate. The best approach: get pre-approved by a bank or online lender first, then ask the dealer to beat it. Some dealers access competitive rates, but you need a benchmark to negotiate. Don't judge on monthly repayment alone — always compare the total cost over the full term.
What is a balloon payment and should I use one?
A balloon payment is a lump sum due at the end of the loan term, set as a percentage of the amount financed when you take out the loan. It reduces your monthly payments during the loan but means you'll either need to pay a large sum at the end, refinance it, or sell/trade the vehicle. Balloon payments cost more in total interest. They suit buyers who plan to upgrade vehicles regularly, but are risky if you intend to keep the car long-term.
Can I get a car loan with bad credit in Australia?
Often yes — some lenders specialise in borrowers with poor credit, but rates are usually much higher. A larger deposit, a co-borrower with good credit, or a secured loan can help. 6–12 months of improved credit behaviour (on-time payments, reducing credit card limits) can meaningfully lower the rate you're offered. You can get a free copy of your credit report from the credit reporting bodies before applying.
Can I pay off my car loan early in Australia?
Most variable rate car loans allow early repayment without penalty. Fixed rate loans may charge an early exit or break fee. Check the loan contract's early repayment clause before signing. If you plan to make extra repayments or pay out early, specifically search for loans with no early repayment fees. Even small extra repayments significantly reduce total interest.
Do I need comprehensive insurance for a car loan?
Most lenders require comprehensive car insurance for the life of the loan since the vehicle secures the loan. If the car is written off, the insurance payout reduces the loan balance. Some lenders also offer GAP insurance to cover any shortfall between the insurance payout and remaining loan balance — particularly important for new cars that depreciate quickly in the first year.
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Every lender must quote a comparison rate, which includes most fees. Get at least three written quotes, including one from your own bank, before you sign dealer finance.
ozfinancecalc.com.au does not compare lenders, arrange credit or receive referral fees.
What drives your car loan rate
What a car loan really costs comes down to three things: the interest rate, the fees (captured in the comparison rate), and the loan term. This page does not list lender rates: enter the rate from your own quote and use the calculator above to turn a rate into a real monthly repayment and total interest figure.
Always compare the comparison rate, not the headline rate
Under Australian consumer-credit law, lenders must show a comparison rate alongside the advertised rate. It rolls the interest rate together with most standard fees (establishment, monthly account-keeping) into one annual percentage, so it's the only fair way to line up two loans. A 6.99% loan with high fees can cost more than a 7.49% loan with none — the comparison rate is what exposes that.
Secured vs unsecured, new vs used, EV discounts
Three factors move your rate more than anything else:
Security. A secured loan uses the car as collateral, so it usually attracts a lower rate. An unsecured loan has nothing backing it, so rates run several points higher.
New vs used. New cars attract the lowest rates; used cars cost more because they're a higher risk to the lender, and many lenders cap the age of the car at the end of the term.
EV / green discount. Some lenders discount loans for electric and plug-in hybrid vehicles. Ask for the comparison rate and test it in the calculator.
Watch the balloon (residual) payment
A balloon is a large lump sum (a percentage of the amount financed) deferred to the end of the loan. It cuts your monthly repayment, which looks attractive — but you still owe that amount, and you pay interest on the whole balance the entire term, so the total cost is higher. Only use a balloon if you have a concrete plan to pay or refinance it. The calculator above lets you see monthly cost with and without one.
Worked example: $35,000 car over 5 years
A $35,000 secured loan at 7.5% p.a. over 5 years costs roughly $701/month and about $7,080 in total interest. At 6.5% p.a. the repayment falls to about $685/month and ~$6,090 interest — a ~$990 saving over the loan for the same car. (Illustrative rates, not offers.) Stretch the same loan to 7 years and the monthly drops but total interest climbs by roughly $3,000. Small rate and term changes move the number a lot — which is the whole point of comparing.
6 ways to get a lower car loan rate
Choose a secured loan over unsecured where you can — it's the single biggest rate lever.
Ask about EV or PHEV discounts if that kind of car suits you.
Keep the term short — 3–5 years costs far less interest than 7.
Skip or minimise the balloon unless you have a clear payoff plan.
Tidy your credit — a clean credit file generally gets you better offers.
Get several written quotes — from banks, credit unions or a licensed broker — before accepting dealer finance.
Keep a copy of your result
We don't collect your details or pass them to anyone. Use your browser's print option and choose “Save as PDF”.
Car loan FAQs (2026)
What's a good car loan rate in Australia right now? For a secured loan, compare written quotes on their comparison rates; there is no single benchmark that fits every borrower. Enter each quote above to see the cost difference.
Should I get finance from the dealer? Dealer finance is convenient but the rate is often marked up. Get an independent pre-approval first so you know your real rate and can negotiate.
What is a comparison rate? The interest rate plus most standard fees expressed as one annual figure — the only fair way to compare two loans. Lenders must show it by law.
Is a balloon payment worth it? It lowers your monthly repayment but raises total cost and leaves a large sum owing at the end. Only use one with a clear payoff or refinance plan.
Does the car's age affect my rate? Yes — older/used cars usually attract higher rates, and many lenders limit how old the car can be at the end of the term.
Can I pay a car loan off early? Often yes, but fixed-rate loans may charge early-payout or break fees. Check before signing if you plan to clear it early.
This calculator gives general information only, not financial or credit advice, and figures are estimates — confirm rates and repayments with a licensed lender or broker.
Car Loan guides — read next
In-depth Australian guides that explain the numbers this calculator produces.
