Car loan repayment calculator

Car loan repayments — FAQs

How are car loan repayments worked out?

Lenders use standard amortisation: equal instalments across the term at the loan's rate, with interest charged on the balance as it falls. Fees change the picture — an establishment fee is usually financed into the loan, and an ongoing account fee rides each repayment — which is why two loans with the same advertised rate can cost different amounts.

What is a balloon or residual payment?

A lump sum left owing at the end of the loan. Because less is paid off across the term, each repayment is smaller, but the deferred balance keeps attracting interest — so a balloon usually costs more over the life of the loan, and it still has to be paid or refinanced at the end.

What interest rate should I use when budgeting?

Whichever rate your lender has quoted you. Rates move with your credit history, whether the loan is secured against the car, the age of the car and the lender, so a figure from your own quote is worth more than any advertised headline. Secured car loans in Australia sat broadly in the 6 to 9 per cent per annum range through mid-2026.

What is the difference between an interest rate and a comparison rate?

The interest rate applies to your balance. The comparison rate folds most compulsory fees into a single percentage so two loans can be judged on the same basis, and Australian lenders publish one beside any advertised rate. When you budget from a plain rate, add the fees yourself — that is what brings the estimate closer to the comparison-rate picture.

Does a bigger deposit or trade-in reduce what I pay?

Both reduce the amount financed, which lowers each repayment and the total interest paid. The difference over a five-year term is usually larger than people expect — a few thousand dollars of deposit can save more than it looks.

Can I pay a car loan off early?

Usually, but check the contract first: fixed-rate loans commonly carry early-exit or break fees, and some lenders charge for extra repayments above a set amount. Where extra repayments are free, paying even a little above the minimum shortens the term and cuts the total interest. Ready to put your own numbers in? Open the car loan repayment calculator.

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