Australian Car Loan Repayment Calculator
Work out the repayments on a car loan, what a balloon payment does to them, and what the whole thing costs by the end.
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Your Car
The drive away price you are financing. If on road costs are going into the loan, include them here.
Cash you are putting in
What the dealer is allowing for your old car. Any amount still owing on it is not modelled.
Your Loan
Starts at an assumed 7.5%, which is a mid range secured car loan rate, not a quote. Use the rate on your own offer.
Years
Fees
Also called an application or loan approval fee. Lenders commonly charge $150 to $500. Add a broker fee here too.
Added to the loan, it is principal and earns interest for the whole term. Paid upfront, it costs you the cash now and no interest. Either way it counts in total fees.
Commonly up to $10 a month. It is billed monthly, so it is kept out of the headline repayment and shown separately, but it is inside every total.
Estimates only, not financial advice, and not a credit quote. Models one product: a fixed rate, reducing balance consumer car loan with level repayments and an optional balloon. It does not model a novated lease, a dealer Guaranteed Future Value product, or flat rate finance. Interest is worked out month by month on the balance, which is how lenders quote a repayment; most then work it out daily and charge it monthly. Stamp duty, registration, insurance, servicing and running costs are not included.
Enter the vehicle price to see your repayments.
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Frequently asked questions
How are car loan repayments calculated?
The monthly repayment is the level amount whose present value, plus the present value of the balloon, equals the amount financed. It is the standard reducing balance annuity, rounded to the cent, and it is the figure every other amount comes from. The amount financed is the vehicle price less your deposit and trade-in, plus the establishment fee if you add that to the loan. Interest is worked out on the balance left after each repayment, so it falls over the term.
What is a balloon payment?
A balloon payment is a lump sum due at the end of the loan, after your last regular repayment. It is simply the part of the loan you have not repaid yet. Car lenders call it a balloon; lease agreements call the same idea a residual. When the term ends you have to pay it, refinance it or sell the car to cover it.
Does a balloon payment lower my repayments?
Yes. Setting a balloon means you repay less principal over the term, so each regular repayment is lower. On a $40,000 loan over five years at 7.5%, a 20% balloon lowers the monthly repayment from about $802 to about $691. The trade off is that $8,000 is still owed at the end.
Why does a balloon payment increase the total interest?
Because the balloon stays part of the loan balance for the whole term, and interest is charged on the balance. Nothing about the balloon is set aside or paused. On the same $40,000 loan, a 20% balloon costs about $1,382 more in interest over five years. The calculator shows the comparison against the same loan with no balloon so the extra interest is a number, not a warning.
Will my lender quote the same weekly or fortnightly repayment?
Not always. Monthly is the contractual repayment, and the weekly and fortnightly figures shown here are that monthly amount converted so your yearly total is the same. Some lenders instead halve or quarter the monthly repayment, which comes to about 13 monthly repayments a year, and some car lenders debit monthly only and have no weekly or fortnightly amount at all. Check your loan documents.
Which fees are included?
Two. An establishment or application fee, which you can add to the loan (where it earns interest, like any other principal) or pay upfront, and a monthly account keeping fee. The monthly fee is deliberately kept out of the headline repayment, because it is billed monthly and does not convert into a per fortnight amount, but it is inside total fees, total paid to lender and the total cost of the car. Early repayment, discharge and PPSR fees are not modelled.
How is a balloon different from a novated lease residual or a Guaranteed Future Value?
A residual on a novated lease is the same idea, a final amount due at the end, but the lease is paid from your pre tax salary and has its own tax treatment, which the novated lease calculator covers. A Guaranteed Future Value product goes further: the financier also guarantees to take the car back for that amount, subject to kilometres and condition. This calculator prices the loan and the balloon, and does not model the lease tax rules or the guarantee.
Does this include stamp duty, registration, insurance or running costs?
No. It is a loan calculator, not a cost of ownership calculator. It works out what borrowing for the car costs you. If you are financing on road costs as part of the deal, include them in the vehicle price.