🚗 Car Loan Calculator

Estimate your monthly car loan repayments and total interest in seconds.

Loan Details

Monthly Payment

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Loan Amount — Total Payment — Total Interest —

💡 Tip — A larger down payment lowers your monthly payment and, when interest applies, total interest.

GUIDE

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Calculator Inputs

This calculator estimates a principal-and-interest car loan in Australian dollars from five fields. Car Price is the amount used as the starting purchase price. Down Payment is your cash deposit, while Trade-In Value is the agreed credit for the vehicle you are exchanging; the tool subtracts both before calculating interest. Interest Rate is the nominal annual percentage you choose to test, not a rate sourced from a lender. Loan Term is selected in months from the available 36, 48, 60, 72 or 84-month options. The calculated loan amount is therefore car price minus deposit minus trade-in value. Enter a positive net trade-in credit only. If the settlement exceeds the trade-in value, this field cannot represent the shortfall; include any financed shortfall in Car Price or use the lender's quoted amount of credit. Likewise, if an establishment fee, insurance premium, accessory or on-road cost will be financed, include it in Car Price only when it is genuinely part of the new amount borrowed. The fields accept formatted numbers, but calculations use non-negative numeric characters and ignore commas and currency symbols.

Repayment Formula

Let P be the financed amount: car price minus down payment minus trade-in value. Let a be the annual interest rate entered as a percentage, n the selected number of months, and r the monthly rate, calculated as a divided by 100 and then by 12. When r is greater than zero, the monthly repayment M is P multiplied by r times (1 + r) to the power n, divided by ((1 + r) to the power n minus 1). This is the standard level-payment amortisation formula. It is mathematically equivalent to starting each month with the previous balance, adding interest at r, and subtracting the same payment M. Early payments therefore contain more interest because the outstanding balance is larger, although this page does not display that split or build a visible schedule. When the entered rate is zero, the code avoids division by zero and simply calculates M as P divided by n. The annual rate is divided into twelve equal monthly periods; the model does not use daily interest, actual calendar dates, or a lender-specific day-count convention.

Calculation Sequence

The order of operations matters when you test a quote. First, the calculator converts the displayed car price, deposit and trade-in entries to numbers. It subtracts the two contributions from the price once, producing the amount financed. It then converts the entered annual rate to a monthly rate and applies that rate for the selected count of equal monthly repayments. Deposit and trade-in are not treated as later repayments, so they never attract interest in this model. Interest is represented through the amortisation formula rather than added upfront or calculated on the original price for every month. The page recalculates as an input changes and again when you press Calculate. It proceeds only when the car price, parsed term and financed amount are positive and all inputs and results are valid and finite. A zero interest rate is valid. The visible term selector offers 36, 48, 60, 72 and 84 months. Invalid or nonfinite inputs or results, or a car price, parsed term or financed amount that is not positive, clear all displayed outputs to dashes. Check the displayed Loan Amount before relying on the other outputs, especially after changing the deposit or trade-in deduction.

Worked Example

Suppose you enter a Car Price of A$40,000, a Down Payment of A$5,000 and a Trade-In Value of A$10,000. Those user assumptions produce a Loan Amount of A$25,000. Now enter an annual Interest Rate of 6% and select 60 months. The calculator divides 6% by 12, giving a monthly rate of 0.5%, and applies the level-payment formula for 60 periods. Using the same calculation as the page, the unrounded monthly result is A$483.3200382357068. The main result therefore displays A$483.32. Multiplying the unrounded repayment by 60 gives A$28,999.202294142407, so Total Payment displays A$28,999 after whole-dollar rounding. Subtracting the A$25,000 principal gives A$3,999.2022941424075, shown as Total Interest of A$3,999. These figures assume every repayment is made monthly and the rate stays at 6% for the entire term. They do not include any fee, tax, balloon amount or change in rate, so a lender quote can differ even when its advertised rate looks identical.

Reading the Results

Monthly Payment is the level principal-and-interest amount produced for each of the selected monthly periods. It is displayed to the nearest cent. Loan Amount is the price left after the entered deposit and trade-in are deducted, displayed to the nearest Australian dollar. Total Payment is the unrounded monthly repayment multiplied by the number of months, then displayed to the nearest dollar; it is not calculated by multiplying the already rounded two-decimal figure you see. Total Interest is that unrounded total payment minus the financed amount, also rounded to a whole dollar for display. As a result, hand calculations using the visible monthly figure can differ by a small rounding amount. Total Payment means repayments made under this simplified principal-and-interest repayment model, not the complete cost of acquiring and owning the vehicle. It excludes the deposit and trade-in from Total Payment and does not add fees, taxes, insurance, dealer extras or running costs automatically; any amount included in Car Price is reflected in the loan outputs. Add the deposit and trade-in value separately when comparing your total economic outlay, but do not call the trade-in credit a cash repayment.

Australian Loan Types

Australian car finance is commonly offered as a secured car loan or an unsecured personal loan. With a secured loan, the lender takes a security interest over the vehicle and may enforce that security if the contract is not met. An unsecured loan does not use the car as collateral, so its price and approval rules may differ. This calculator does not change its formula for secured or unsecured borrowing; you must enter the rate quoted for the specific product. Banks, credit unions and dealer-arranged finance can all present fixed repayment offers, but the dealer may act as an intermediary and the credit provider named in the contract may be another business. Compare the actual credit contract, not only where you signed it. Some Australian vehicle finance uses a balloon or residual: regular repayments are reduced by leaving a lump sum due at the end. There is no balloon field here, and the formula amortises the entire Loan Amount to zero across the selected months. Do not use its Monthly Payment to represent a balloon quote unless you separately model the final lump sum with an appropriate calculator.

Credit Disclosures

ASIC administers Australia's national consumer credit regime under the National Consumer Credit Protection Act and the National Credit Code. For fixed-term consumer credit advertising, the Code's comparison-rate rules require a relevant comparison rate when an annual percentage rate is advertised. A comparison rate combines the interest rate with most ascertainable credit fees and charges into one annualised figure for a specified example amount and term. It does not capture every possible cost: government charges and costs triggered only by uncertain events, such as some early-repayment costs, can sit outside it. The required warning also makes clear that a different loan amount or term can produce a different comparison rate. This calculator is not itself a comparison-rate calculator. Its Interest Rate field feeds a nominal rate directly into monthly amortisation and it has no fee inputs. Entering a lender's comparison rate as though it were the contract rate may not reproduce the lender's repayment because the two rates serve different purposes. Use the contract repayment schedule for payment accuracy, and use like-for-like comparison rates to screen the cost of offers with the same example basis.

Fees and On-Road Costs

A vehicle purchase in Australia can involve costs outside the negotiated vehicle price, including state or territory stamp duty, registration-related charges, compulsory insurance arrangements and dealer delivery or accessory charges. Their treatment and calculation depend on the jurisdiction, vehicle and transaction, so this page does not add them automatically. Confirm the drive-away price and identify which items you will pay upfront and which, if permitted, will be financed. If a cost is rolled into the credit contract, include it in Car Price for a closer principal estimate; if you will pay it from cash outside the loan, leave it out and track it separately. The same distinction applies to a lender establishment fee. An ongoing account fee cannot be represented accurately by adding it once to Car Price, because it is charged over time. Neither establishment nor ongoing fees are generated from the Interest Rate field. GST, where applicable to a dealer's vehicle sale or add-on, is normally reflected in the price you agree rather than calculated by this tool. Avoid adding a tax again when it is already included in the entered price.

Offer Comparisons

Build a separate calculator case for each written offer using the same car price, cash deposit, net trade-in credit and term. Enter each offer's contract interest rate, then compare Monthly Payment and Total Interest. Next, place establishment fees, recurring fees, any final balloon, early-payout conditions and financed add-ons beside the calculator result, because none is included here. A low advertised rate can still lead to a different overall cost once those contract features are considered. Australian quotes may show fortnightly repayments, while this tool calculates twelve monthly periods per year. For a rough equivalent fortnightly budget, multiply the monthly payment by 12 and divide by 26; this still does not reproduce a lender's contractual repayment or interest timing. The reliable comparison is total payments over the same term using each lender's own schedule. Common input mistakes include entering a gross trade-in offer without subtracting finance still owing, adding the deposit twice, using the comparison rate as the contract rate, and overlooking a balloon that makes the quoted regular repayment appear lower.

Model Limits

The model assumes one financed amount, one unchanged nominal annual rate, equal end-of-month repayments and a balance fully repaid after the chosen term. It does not model variable-rate changes, introductory rates, payment dates, daily interest, irregular first periods, weekly or fortnightly contracts, extra repayments, redraw, repayment holidays, arrears, default charges or early termination. It also has no field for a balloon or residual and no amortisation table showing principal and interest by month. The result is an estimate for testing input combinations, not a credit offer, approval decision or contract disclosure. The term cannot be typed freely; only 36, 48, 60, 72 and 84 months are available. Currency outputs use Australian-dollar labels, the monthly payment is rounded to cents, and the other three results are rounded to whole dollars. Because the code calculates totals with the unrounded payment, small differences from a hand total are expected. Most importantly, a lender may use a different interest-accrual method and include financed fees. Reconcile the calculator's Loan Amount with the amount of credit in the contract before investigating any repayment difference.

Frequently asked questions

How is the amount financed calculated?

The tool subtracts Down Payment and Trade-In Value from Car Price. Enter a positive net trade-in credit only. If the settlement exceeds the trade-in value, this field cannot represent the shortfall; include any financed shortfall in Car Price or use the lender's quoted amount of credit. If the result is zero or less, all displayed outputs are cleared to dashes.

Should I enter the interest rate or comparison rate?

Enter the contract's nominal annual interest rate when estimating its scheduled repayment. An Australian comparison rate incorporates most ascertainable credit fees for a prescribed example, but this calculator has no fee fields and does not reproduce that regulated calculation. Use comparison rates separately when screening like-for-like offers.

Does the calculator include a balloon payment?

No. Every calculation pays the full Loan Amount down to zero through equal monthly repayments. A balloon or residual leaves a lump sum at the end and usually changes the regular repayment. Use the lender's schedule or a calculator with a separate balloon field for that structure.

Can I use it for fortnightly repayments?

Only as a rough monthly cash-flow reference. The formula uses twelve equal periods per year and every available term is measured in months. Dividing Monthly Payment by two does not exactly model a fortnightly contract because the number of fortnights per year and the lender's interest timing differ.

Are lender fees and on-road costs included?

No fees, stamp duty, registration-related charges, insurance or dealer extras are added automatically. Include a cost in Car Price only if it is part of the amount actually financed. Track upfront costs separately, and use the lender's disclosure documents for recurring or conditional charges.

Why can my lender quote a different repayment?

The lender may calculate interest daily, use different payment dates, finance fees, apply a variable or staged rate, or include a balloon. First compare the contract's amount of credit with this page's Loan Amount, then check the nominal rate, term, repayment frequency and excluded charges.

How are the displayed figures rounded?

Monthly Payment is shown to two decimal places. Loan Amount, Total Payment and Total Interest are shown to the nearest whole dollar. Total Payment uses the unrounded monthly result before display, so multiplying the visible monthly payment by the term can differ slightly from the displayed total.