Loan Repayment Calculator Australia 2025‑26
About to start a new job, or just want to know what you actually take home.
Calculate repayments for personal loans, car loans, and fixed‑rate loans. Compare terms, model extra repayments, see amortisation schedules. All calculations in your browser.
Estimates only — enter your loan details below for a precise figure.
Select the question that matches where you are right now.
Your loan repayment is the fixed monthly amount needed to fully repay the loan over the chosen term at the given interest rate.
The annuity formula calculates a fixed monthly payment that covers monthly interest charged on the outstanding balance plus a portion of principal, reaching $0 at the end of the term.
The three key inputs are loan amount, interest rate, and term. Rate has the biggest impact per dollar — a 2% rate difference on a $30,000 loan over 5 years means about $1,700 more in total interest.
The total amount repaid is your monthly payment multiplied by the number of months. The difference between this and the loan amount is the total interest cost.
Personal loan rates are higher than mortgage rates because they are unsecured — the lender has no property to claim if you default. Here's what drives the total cost.
Personal loans typically range from 7–25%+ depending on credit score and lender. Car loans are lower (5–10%) because the vehicle provides security.
A shorter term means higher monthly repayments but significantly less total interest. A $20,000 loan at 8% over 3yr costs $627/mo and $2,572 in interest; over 5yr it costs $406/mo but $3,360 in interest.
Establishment fees ($100–$500), monthly account fees ($5–$15), and early exit fees can add $300–$1,500 to the effective cost. Always calculate the comparison rate, not just the advertised interest rate.
Extra repayments on personal loans are highly effective because the terms are short and rates are high — savings compound quickly.
Reduces the term from 5 years to approximately 3.5 years and saves roughly $2,100 in interest — a 25% saving on a $200/month commitment.
If you receive a bonus, tax refund, or inheritance, applying it directly to the loan reduces principal and the interest charged on all future payments.
Most variable rate personal loans include a redraw facility — you can make extra repayments and redraw them if needed. Fixed rate personal loans typically do not allow extra repayments without a fee.
The most effective ways to reduce your loan repayment or total interest cost.
Switching from 14% to 9% on a $25,000 loan over 3 years saves approximately $2,200 in interest. Check for exit fees on your current loan before refinancing.
Increasing your deposit or using savings to reduce the borrowed amount has a multiplied effect — lower principal means lower interest on every future payment.
Making extra repayments effectively shortens the term without committing to a higher minimum repayment. You retain flexibility while paying off faster when cash flow allows.
Once you have your repayment figure, these are the logical next steps.
Credit card debt at 20%+ costs far more than a personal loan at 10%. Consolidating cards into a personal loan often saves significantly.
Credit card payoff calculator → →If you have multiple debts, compare avalanche (highest rate first) vs snowball (smallest balance first) strategies.
Debt payoff calculator → →Each existing loan reduces the maximum mortgage a lender will approve by approximately 8–12x the monthly repayment.
Borrowing capacity calculator → →How personal loan repayments are calculated
The annuity formula
Loan repayments use the same formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n − 1]. On a $20,000 loan at 8% over 5 years: monthly rate = 0.667%, n = 60, monthly repayment = $405.53. Total repaid = $24,332 — so total interest = $4,332.
| Loan | Rate | 3yr (mo) | 5yr (mo) | Total interest (5yr) |
|---|---|---|---|---|
| $10,000 | 8% | $313 | $203 | $2,166 |
| $20,000 | 8% | $627 | $406 | $4,332 |
| $30,000 | 10% | $968 | $637 | $8,220 |
| $50,000 | 12% | $1,660 | $1,112 | $16,720 |
Loan repayment examples — car loans, personal loans, 2025-26
These figures show the monthly repayment and total interest for common loan scenarios at typical 2025 rates.
| Purpose | Amount | Rate | Term | Monthly | Total interest |
|---|---|---|---|---|---|
| Car (new) | $30,000 | 7% | 5yr | $594 | $5,640 |
| Car (used) | $20,000 | 9% | 4yr | $498 | $3,904 |
| Personal | $15,000 | 12% | 3yr | $499 | $2,964 |
| Personal | $25,000 | 10% | 5yr | $531 | $6,860 |
| Debt consolidation | $40,000 | 8% | 5yr | $811 | $8,660 |
Car loan repayments — new vs used, dealer vs bank
New vs used car rates
New car loans from manufacturers and banks typically range from 5–8% in 2025. Used car loans are higher (8–12%) because the asset depreciates faster and provides less security. Dealer finance is convenient but often more expensive than bank or credit union rates — compare the comparison rate, not the advertised headline rate.
Balloon payments
Some car loans include a 'balloon' or residual payment — a lump sum due at the end of the term. This reduces monthly repayments significantly but means you must pay a large amount or refinance at the end. Balloon loans are common in novated leases. A $30,000 loan at 7% with a $10,000 balloon over 5yr has monthly repayments of approximately $430 vs $594 without a balloon.
Personal loan rates and what affects them
Rate factors
Personal loan rates depend on: your credit score (the most important factor), income stability, employment type, loan amount, and lender. Borrowers with excellent credit (750+) can access rates of 6–8%; those with fair credit may pay 15–20%. Secured personal loans (backed by an asset) are 2–4% cheaper than unsecured.
Comparison rates
The comparison rate includes interest plus fees and is required to be disclosed by Australian lenders. A loan advertised at 8.9% may have a comparison rate of 11.3% after fees. Always compare on comparison rates, not headline rates.
How extra repayments reduce your loan faster
| Extra/mo | On $20k at 10%, 5yr | Months saved | Interest saved |
|---|---|---|---|
| $100 | ~9 months shorter | 9 | ~$1,050 |
| $200 | ~15 months shorter | 15 | ~$1,650 |
| $500 | ~26 months shorter | 26 | ~$2,400 |
Variable vs fixed rate loan flexibility
Variable rate personal loans almost always allow unlimited extra repayments. Fixed rate personal loans typically restrict or prohibit extra repayments — check your contract before making extra payments to avoid break fees.
Consolidating multiple debts into one loan
When consolidation makes sense
Consolidating multiple high-rate debts (credit cards at 20%, buy-now-pay-later at 25%) into a single personal loan at 10% can significantly reduce both monthly repayments and total interest. The saving is largest when the consolidated rate is much lower than the individual debt rates.
The trap
Consolidation only saves money if you don't re-accumulate the debts you paid off. Many borrowers consolidate credit cards and then use them again — resulting in both the consolidation loan repayment and new card debt. If consolidating, close or severely limit the cleared cards.
❓ Frequently asked Frequently asked questions
How is a loan repayment calculated?
Using the annuity formula: M = P[r(1+r)^n]/[(1+r)^n−1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. A $20,000 loan at 8% over 5 years has a monthly repayment of approximately $406.
What is a comparison rate?
A comparison rate includes both the interest rate and most fees as a single percentage, required to be disclosed by Australian lenders. It allows fair comparison between loans with different fee structures. Always compare on comparison rates, not headline rates.
Can I pay off my personal loan early?
Most variable rate personal loans allow early repayment without penalty. Fixed rate personal loans typically charge early exit fees (sometimes called break costs) if repaid before the fixed period ends. Check your loan contract before making large extra repayments.
How do car loans differ from personal loans?
Car loans are usually secured against the vehicle, which means lower rates (typically 5–10% vs 10–20% for unsecured personal loans). New car loans have the lowest rates. Dealer finance is convenient but often has higher rates than banks — always compare.
What is a balloon payment on a car loan?
A balloon payment is a lump sum due at the end of the loan term. Including a balloon reduces monthly repayments significantly during the loan, but you must either pay the lump sum, sell the vehicle to cover it, or refinance at the end. Common in novated leases and dealer finance.
Does paying off a loan improve my credit score?
Yes — consistently making on-time repayments builds a positive repayment history. Closing a loan account may slightly reduce your average credit age initially, but the positive repayment history remains on your credit file for 2 years.
Where these figures come from
Debt and credit figures on this page come from the Reserve Bank of Australia (consumer and housing rate data), ASIC MoneySmart (consumer guidance under the National Consumer Credit Protection Act), and the Australian Financial Complaints Authority (dispute resolution).
- Consumer credit interest rates — RBA — Indicator Lending Rates (F5).
- Credit card & personal loan guidance — ASIC MoneySmart — Managing debt.
- Financial hardship & dispute resolution — Australian Financial Complaints Authority (AFCA).
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.