Car Loan Calculator - Calculate Your Repayments

The RateCity Car Loan Calculator is a valuable tool for those considering car financing options. Designed to help you evaluate potential car loan repayments, it calculates based on your preferred loan amount, term, and interest rate. The information you input allows the calculator to estimate your potential weekly, fortnightly, or monthly repayments, as well as the total interest payable over the life of the loan. 

Armed with insights into the total costs associated with prospective car loans and an understanding of your repayment obligations, you are better positioned to make informed financial decisions. 

Given the wide variety of car financing options available, this auto loan comparison calculator enables you to explore different interest rates and loan terms to see how they affect your repayments. This method can help you identify a car loan that best matches your financial constraints and goals. 

Our comparison tables let you look at car loan interest rates, fees, and various terms and conditions side by side. However, this car loan repayment calculator could help advance your research by calculating the overall borrowing cost in different scenarios. Using the calculator, you can check that your monthly repayments will be manageable throughout the loan's term and that you are making a wise financial decision. 

If you're contemplating a car loan with a balloon payment, this calculator can be particularly helpful. A car loan calculator with balloon repayments can help you calculate the regular car loan payments that will be required if you add a significant final 'balloon payment' at the end of your loan term. The calculator can show how the final payment affects the total cost of your loan, so you can better plan ahead and make informed choices when securing a car loan.

Here’s how you can use the repayment calculator to estimate the repayments and total interest payable on a car loan:

1. Enter how much you’d like to borrow: You may already have a figure in mind based on the car you want to buy, but you could also enter different loan amounts to compare repayment estimates.
2. Select a loan term: A longer loan term (e.g. 4-7 years) could mean more affordable repayments, but you could end up paying more interest in total over the life of the loan when compared to a shorter term (e.g. 1-3 years).
3. Enter your preferred interest rate: You can use the provided average interest rate, or enter a higher or lower rate to see how it can affect your car loan repayments. If you’ve already prepared a shortlist of options from our comparison tables, now is the time to enter their rates into the calculator. A lower interest rate could mean lower repayments, but be sure to also consider the comparison rate and any other fees that may be involved.
4. Select your repayment frequency: See how paying your car loan monthly, fortnightly or weekly can affect your repayments and your loan’s total cost. This may make it easier to see how the repayments could fit into your budget and pay cycle.
5. Add optional calculations: While not necessary for every calculation, you can see how making extra repayments or setting aside a balloon payment can affect your car loan’s costs.
6. View results: Once you’ve entered the necessary information, the calculator will show the total interest you’ll pay and the loan’s overall costs. You can also reveal a repayment table for a payment-by-payment breakdown of the loan over time.

Keep in mind that the results from a car loan repayment calculator are only estimates, and don’t include all the fees and charges that a lender might levy. Make sure to read the Product Disclosure Statement (PDS) carefully for ongoing fees and charges to get a more accurate estimate of how much the loan will cost you.

Using RateCity’s car loan calculator for car loan comparison won’t affect your credit score. These calculators are designed to provide estimates based on the information you enter, and they don't involve a hard inquiry on your credit score. 

Credit scores are typically affected when you formally apply for credit, such as when you submit a loan application to a lender. This process involves a hard inquiry, and the lender reviews your credit report to make a lending decision. However, simply using a loan calculator to estimate your repayments or borrowing power won’t affect your credit score. 

Feel free to use a car loan repayment calculator as often as you like to explore various scenarios and understand how different factors, such as loan amount, interest rate, and term, may impact your potential loan. It's a useful tool for informed decision-making without any impact on your credit score.

A car loan calculator and a personal loan calculator are very similar, although they have one key difference: the default interest rate. This is because the average interest rate is different for car loans and for personal loans.

A car loan is often secured against the vehicle being purchased and secured loans generally attract lower interest rates. Meanwhile, the average personal loan rate may be much higher as it’s lifted by the number of unsecured personal loan rates in the RateCity database. Therefore, the average car loan interest rate may be lower than that of a personal loan. If you don’t set your own interest rate, you may find the estimated repayments may be higher for personal loans than for car loans.

Before you dive into the car loan application process, it can help to familiarise yourself with the key elements that define a car loan. To help you make informed decisions, here are some common terms and concepts you should grasp before you begin your car loan journey:

Interest rates

Car loan interest rates play a pivotal role in determining the cost of your ongoing repayments and the total amount you'll pay over the life of the loan, on top of the principal amount you borrow.  

When comparing loan options, it's not just about the advertised interest rate; you may also want to consider the comparison rate. This figure combines the interest rate with any additional standard fees and charges, providing a more accurate representation of a hypothetical car loan’s cost.

Fees

Car loans may charge various fees that can affect your overall expenses. These fees include establishment fees or application fees, ongoing charges like account-keeping fees, early repayment fees, and redraw fees. Being aware of these fees can help you budget effectively and choose a loan that better aligns with your financial goals.

Repayments

Paying off your car loan involves making regular, consistent payments, on a weekly, fortnightly, or monthly basis. The specific amount you'll pay is influenced by factors such as:

• your interest rate;
• whether the rate is fixed or variable;
• any associated fees;
• the loan's duration, and;
• whether you've opted for a balloon payment at the end of the loan term.

Understanding how repayments work is crucial for managing your financial obligations effectively.

Lending criteria

Different car loans have distinct eligibility requirements. It's often wise to assess whether you meet a loan’s criteria before proceeding with an application. These criteria typically involve being an Australian citizen or permanent resident, having a minimum income that meets the lender's threshold, and maintaining a good to excellent credit score. This preliminary assessment can help save you time and effort, ensuring you're pursuing a loan that you're more likely to qualify for.

One of the simplest ways to find a suitable car loan is to look at options from a variety of different lenders. 

You can use rate tables like on RateCity for an apples-to-apples comparison. Use the filters to add details like your desired loan amount, preferred loan term, and other features that interest you. This can help narrow your car loan options to only those that better align with your specific needs. 

Remember to consider more than just the interest rate when comparing your options. The fees associated with a loan can sometimes add to your costs significantly. Additionally, some car loans come with value-adding extra features, potentially justifying their cost. 

To find the car loan that best suits your financial situation, it might be worthwhile considering the following:

As well as calculating how much you can comfortably afford to borrow, it might also be worth factoring in any extra costs that can come with car ownership. This may better prepare you to budget for ongoing costs on top of your loan repayment.

Some common extra costs car owners might incur include:

• Stamp duty: When purchasing a car, you may be required to pay a one-time stamp duty fee. This fee may vary based on the value of the vehicle and the state you reside in.
• Luxury car tax: When you purchase a luxury car, you may be subject to Luxury Car Tax (LCT). This tax is applicable when you buy a car whose GST-inclusive value exceeds the current LCT threshold set by the ATO. The LCT is imposed at a rate of 33% on the amount that exceeds this threshold. If LCT applies to your car purchase, it’s likely to be included in your purchase price. However, remember to confirm this with your dealer to avoid any additional charges further down the road.
• Registration: Every car must be registered with the appropriate authorities in your state or territory. Registration fees vary depending on your location and the type of vehicle you own. These fees are typically renewed annually or biennially.
• Car insurance: A car insurance policy may be able to cover yourself and your vehicle in case of accidents, theft, or damage. Insurance premiums vary depending on factors such as your age, driving record, location, the type of coverage you choose, and more.
• Petrol costs: Fuel expenses constitute a significant portion of car ownership. Your petrol bill will vary based on the fuel efficiency of your vehicle, the distance you drive, and the prevailing fuel prices in your area.
• Regular services, maintenance, and repairs: Cars require regular servicing to maintain optimal performance and ensure longevity. Routine maintenance tasks such as oil changes, tire rotations, and brake inspections incur costs. Additionally, unexpected repairs due to wear and tear or accidents may arise.
• Tolls: Your experience may vary based on your location, but charges for toll roads and bridges can quickly build up if you're a frequent traveller on toll routes.

Adding up these expenses can give you a better idea of your car’s overall running costs. This knowledge can help you calculate a suitable borrowing amount that aligns with your budget and allows for the smooth operation and maintenance of your vehicle.

Car loan providers typically offer an interest rate range on their loan products, such as between 5-11%. The specific rate you’ll be offered is determined by a variety of factors, including your credit score. 

If you present yourself as an ideal borrower, boasting a good to excellent credit score, a steady full-time income, and a work history spanning at least six months, you may be able to boost your prospects of securing approval for lower car loan interest rates. On the other hand, if you have a low credit score or a history of late payments, lenders may view you as a higher risk. This could lead them to reject your loan application, or you may be offered a higher interest rate on your car loan. 

You can check your credit score online  to keep tabs on your financial health. If you have a good credit score, you may confidently apply for car loans with competitive rates and additional benefits. 

However, if your score is low, you might not qualify for the lowest rates offered by lenders. You may need to adjust your budget, or take some time improving your credit score before applying. 

What’s my credit rating? 

Your credit rating, also known as a credit score, is a numerical representation of your creditworthiness. Lenders typically use it to evaluate the risk of lending money to you. A higher credit rating indicates a lower credit risk, making it more likely for lenders to offer you better interest rates. On the other hand, a lower credit rating may result in higher interest rates. 

Besides the interest rate on your loan, your credit rating can have an impact on your likelihood of getting approved for a car loan. Before you apply for any financial product, such as credit cards or home loans, it may be worth finding your credit rating. Having a poor credit history and a low credit score can increase the chances of loan rejection, and since being denied credit can risk further harming your credit score, you may want to avoid this situation.  

You can get your credit score for free from major credit bureau Equifax by visiting RateCity's credit score hub. A "soft" credit check will be performed on your credit history, but this will not affect your credit score.