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Car Loan Calculator Australia — Monthly Repayments & Total Interest 2026

Last updated: Reviewed by Emma Hartley, CFP
A **car loan calculator** helps you understand the true cost of financing a vehicle in Australia. At 8.5% over 5 years, a $30,000 car loan costs approximately **$7,020 in total interest** — increasing the effective price of the vehicle by 23%. Reducing the term to 3 years saves approximately $3,000 in interest. This calculator shows your monthly repayment, total repayments, and total interest paid for any Australian car loan. Compare terms and rates to minimise the total cost of your purchase.
Car Loan Calculator Australia
Drive-away price including on-road costs
Cash deposit or trade-in value
Average Australian car loan rate ~7–10% (secured, new vehicle)
Most car loans are 3–7 years
Monthly Repayment —
Total Repayments —
Total Interest Paid —
Loan Amount —
View Year-by-Year Breakdown
Year-by-year growth breakdown

Real-World Examples — 2026

$35,000 new car, $5,000 deposit, 5 years at 8.5%

Borrowing $30,000 for a new $35,000 vehicle (after $5,000 deposit) at 8.5% over 5 years. Monthly repayment: approximately $617. Total repayments: $37,020. Total interest paid: $7,020. The car loan adds 23.4% to the loan principal in interest over 5 years.

Same loan — 3 years vs 5 years comparison

Reducing the term from 5 years to 3 years on the same $30,000 at 8.5%: monthly repayment rises from $617 to $944 but total interest drops from $7,020 to $3,984 — saving $3,036. The shorter term reduces total cost significantly if you can afford the higher monthly payment.

Frequently Asked Questions

As of May 2026, secured car loan rates in Australia range from approximately 6.5–8% for new vehicles from bank and credit union lenders, and 9–12% for used vehicles or loans from finance companies. Dealership finance (manufacturer finance) can be competitive for new vehicles, sometimes offering promotional rates below 5%, but may include balloon payments or other conditions. Always compare the comparison rate, which includes fees.

A balloon payment (also called residual value) is a lump sum due at the end of the loan term, typically 20–40% of the vehicle's value. Loans with balloon payments have lower monthly repayments but result in significantly more interest paid over the loan life. At the end of the term, you must either pay the balloon, refinance it, or hand the vehicle back (for finance lease / novated lease products). Balloon payments are common in dealer finance and novated leases.

If your loan rate exceeds the after-tax return you could earn on invested cash, paying cash saves money. At 8.5% car loan rate vs approximately 5% on a high-interest savings account (after tax), paying cash saves roughly 3.5% p.a. However, if the car loan rate is competitive and you have higher-returning uses for cash (paying down a higher-rate mortgage, investing in super within the concessional cap), financing may be preferable.

Car loan interest is not tax-deductible for personal (non-business) use vehicles. If you use the vehicle for income-producing purposes (work use, Uber, delivery), a proportion of the loan interest may be deductible based on the percentage of business use. For employees claiming work-related vehicle expenses, the ATO allows two methods: cents per kilometre or the logbook method, but neither includes personal loan interest as a deductible item.

A novated lease is a three-way agreement between you, your employer, and a finance company, where your employer makes lease payments from your pre-tax salary, reducing your taxable income. The tax saving can be significant — especially for higher-income earners. Unlike a car loan, you do not own the vehicle; you can hand it back or pay the residual at the end of the lease. Use a salary sacrifice / novated lease calculator to compare the after-tax cost with a standard car loan.