Car Loan Repayment Calculator 2026-27
Buying a car? Know your monthly payment before you walk into the dealer.
Calculate monthly repayments on a car loan in Australia. Enter your loan amount, interest rate, and term in years. Shows monthly repayment, total interest paid, and total cost of the loan.
Comparison rate includes fees. Check your lender's full schedule.
Amortisation formula for fixed-rate loans
The amortisation formula
Monthly repayment = Loan × [r(1+r)^n] ÷ [(1+r)^n − 1], where r = monthly interest rate (annual ÷ 12) and n = total months. On a $25,000 car loan at 7% for 5 years: n = 60, r = 0.00583. Monthly repayment ≈ $495. In early months, most of each payment is interest; later, more goes to principal.
Monthly repayments at common loan sizes and rates
| Loan amount | 5yr @ 7% | 5yr @ 10% | 5yr @ 15% |
|---|---|---|---|
| $10,000 | $198 | $212 | $238 |
| $15,000 | $297 | $319 | $357 |
| $20,000 | $396 | $425 | $475 |
| $25,000 | $495 | $531 | $594 |
Australian car finance compared: secured loan, novated lease, chattel mortgage, dealer finance
Four common Australian structures
Australian consumers and business buyers have four mainstream car-finance structures, each with very different tax treatment, deposit requirements and ownership outcomes. Regulatory oversight sits with ASIC for consumer finance (under the National Consumer Credit Protection Act 2009) and with the ATO for business structures such as chattel mortgages and novated leases.
| Structure | Who uses it | Deposit | Typical rate (2025) | Tax treatment | Ownership |
|---|---|---|---|---|---|
| Secured consumer car loan | Individuals | 0–20% | 6.5–9.5% p.a. | No deduction | Borrower on day 1 |
| Novated lease | PAYG employees | Nil | Bundled | Pre-tax salary packaging; FBT via operating-cost method or statutory formula | Leasing co.; buyer at end |
| Chattel mortgage | Businesses (ABN) | 0–30% | 6.5–9.0% p.a. | Interest & depreciation deductible; GST claimable up-front | Business on day 1 |
| Dealer finance | Individuals | 0–10% | 7–14% p.a. | No deduction | Borrower, subject to balloon |
| Unsecured personal loan | Private-sale / older cars | Nil | 8.5–15% p.a. | No deduction | Borrower |
Electric vehicles and FBT exemption
Since 1 July 2022, battery-electric and plug-in hybrid vehicles under the luxury car tax threshold ($91,387 fuel-efficient cars, 2024-25) enjoy an FBT exemption when financed via novated lease. This is currently the most tax-effective path for PAYG employees buying a new EV — the exemption is legislated to end for PHEVs on 1 April 2025. See the ATO's Electric cars exemption guidance.
How extra repayments cut Australian car loan interest
Why even a small boost pays off
Adding a modest extra repayment shortens the loan and reduces total interest by more than most borrowers expect. Unlike a mortgage, car loans have short terms (typically 3–7 years) so the compounding benefit is smaller, but the percentage savings are still material. Under ASIC consumer-lending rules, most secured car loans now permit fee-free extra repayments on variable-rate products; fixed-rate contracts may charge a break fee if paid out in full early.
Worked example: $25,000 loan at 7% p.a. over 5 years
Base repayment: about $495/month, $29,702 total, $4,702 interest. Add $50/month:
| Extra per month | New monthly repayment | Loan paid off in | Total interest | Saving |
|---|---|---|---|---|
| $0 | $495 | 5 years 0 months | $4,702 | — |
| $50 | $545 | 4 years 5 months | $4,215 | $487 interest, 7 months |
| $100 | $595 | 4 years 1 month | $3,792 | $910 interest, 11 months |
| $200 | $695 | 3 years 5 months | $3,087 | $1,615 interest, 19 months |
Check the fixed-rate break fee
If your loan is fixed-rate, the contract typically allows up to $1,000–$5,000 per year in extra repayments fee-free, with break fees only triggered on full payout. ASIC MoneySmart's car loans guide recommends requesting a payout statement before making a large extra repayment — it shows exactly what you save and flags any fees. Where possible, round up your regular payment rather than making a single lump-sum payoff late in the term — the earlier the extra principal goes on, the more interest you save.
❓ Frequently askedFrequently asked questions
What is the difference between interest rate and comparison rate for car loans?
The interest rate is the base cost of borrowing. The comparison rate includes the interest rate plus most fees (establishment fee, monthly fees) expressed as a single annual rate, enabling like-for-like comparisons. Under Australian law (National Consumer Credit Protection Act), lenders must display the comparison rate alongside the advertised rate.
Secured vs unsecured car loan in Australia?
A secured car loan uses the vehicle as collateral, allowing lower interest rates (typically 5–9% p.a. for good credit). The lender can repossess the car if you default. An unsecured car loan (personal loan for car purchase) carries higher rates (8–15%+) but the lender has no claim on the vehicle. For new or near-new vehicles, secured loans almost always offer better rates.
Where these figures come from
Every threshold and tax rate on this page is taken from the Australian Taxation Office (ATO) — the source of record for Australian income tax, Medicare levy, HECS/HELP repayment, and capital gains tax.
- Individual income tax rates (2026–27, Stage 3) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the repayment schedule, total interest cost, and payoff timeline based on the loan or debt details you entered.
Use this to compare repayment strategies — extra repayments, higher frequency payments, or refinancing at a lower rate. See which approach saves the most interest.
Not a loan offer or approval. Actual loan terms depend on the lender's credit assessment, fees, and the specific product you choose.
Uses standard amortisation formulas with the rate and term you entered. All calculations run in your browser — no data is sent to any server.
Debt repayment outcomes are driven by the interest rate, repayment amount, and loan term. Even small changes to any of these can materially shift the total cost and payoff date.
A 0.5% rate reduction on $30,000 of debt saves hundreds in interest over the life of the loan. Refinancing or negotiating a better rate is often the highest-impact move.
Even $50/month extra on a $20,000 loan can cut months off the term and save significant interest. The earlier you make extra payments, the greater the compounding benefit.
Switching from monthly to fortnightly effectively makes 13 monthly payments per year instead of 12 — reducing the term and total interest without increasing your per-pay amount.
To pay off debt faster, focus on the highest-rate debt first, increase repayment frequency, and avoid taking on new debt while paying down existing balances.
Pay minimums on all debts, then direct every extra dollar to the highest-rate debt. This minimises total interest paid across all your debts.
Moving a credit card balance to a lower-rate personal loan, or refinancing a car loan, can reduce the rate and accelerate payoff.
Reducing your card limit prevents re-borrowing what you've paid off — and improves your borrowing capacity for future applications.
Debt management connects to budgeting, savings, and credit decisions. Use these calculators to plan your next move.