Australian Car Loan Calculator
Calculate your car loan repayments with Australia’s most comprehensive car finance calculator.
Compare scenarios, get smart insights, and understand your car loan in detail with 3 simple steps.
Enter Your Loan Details
Enter your car price, deposit amount, loan term, and interest rate. Our calculator will automatically compute your repayments based on these inputs and show you how much you'll pay over the life of your loan.
Review Your Repayment Options
See your monthly, fortnightly, or weekly repayment amounts. Compare different loan scenarios by adjusting the term length or deposit to find the most affordable option that fits your budget.
Analyze Total Loan Costs
View a complete breakdown of your car loan including total interest payable, total amount to repay, and how your payments are distributed over time with our interactive chart and amortization schedule.
Car Loan Calculator
Repayments · Total Interest · Full Schedule · 2025-26
Vehicle Details
Loan Details
Repayment Options
Include Balloon Payment?
A lump-sum amount due at the end of the loan term — reduces regular repayments but means more interest paid overall.
Vehicle Use
Used for work / business purposes?
Enables ATO deductibility notes. Per the ATO, a portion of loan interest may be deductible.
Loan Summary
Based on a vehicle price of $35,000, a $5,000 deposit, and a $30,000 net loan at 7.50% p.a. over 5 years.
Your monthly repayment is $0. Over the full term you will pay $0 in interest, for a total repayment of $0.
ASIC MoneySmart — Car Loans | ASIC — Comparison Rates | RBA — Lending Rate Statistics
Last verified: March 2026
Repayment Schedule
Monthly amortisation schedule showing how each repayment is split between principal and interest. Annual summary rows are highlighted in purple.
Calculated assuming extra repayment applied every month. Applies to variable rate loans. Fixed rate loans may have extra repayment limits — check your loan contract. Source: ASIC MoneySmart.
| Period | Repayment | Principal | Interest | Balance |
|---|---|---|---|---|
| Calculating… | ||||
Interest vs Principal
How much of your repayments go toward interest versus reducing the principal, broken down by year. Early in the loan, a higher proportion goes to interest — the standard amortisation effect.
Annual Interest Paid
Principal vs Interest Split (Annual)
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|
| Calculating… | ||||
Making extra repayments early in the loan term has the greatest impact on total interest — because the balance is highest. Use the Extra Repayment Calculator in the Schedule tab to quantify your savings. Or use our Personal Loan Calculator to compare an unsecured alternative.
Rate Benchmark
Compare your car loan interest rate against the RBA cash rate and the average new car loan rate in Australia. Remember to always compare comparison rates, not just advertised rates.
Rate Comparison
RBA Cash Rate — March 2026 (4.10%) | RBA Lending Rate Statistics | ASIC — Comparison Rate Guide
Last verified: March 2026
Compare Two Loans
Loan A mirrors your main calculator settings. Enter Loan B's rate and term to see a side-by-side cost comparison. The same loan amount and frequency are used for both.
Side-by-Side Comparison
| Metric | Loan A | Loan B | Difference |
|---|---|---|---|
| Interest Rate | — | — | — |
| Loan Term | — | — | — |
| Repayment Amount | — | — | — |
| Total Interest | — | — | — |
| Total Repaid | — | — | — |
Adjust Loan B settings to compare.
Both loans use the same loan amount and repayment frequency as set in the main calculator. Balloon payment from Loan A is applied to both comparisons for fairness. Always request a comparison rate from each lender before deciding.
For educational purposes only. Repayments are calculated using the standard amortisation formula and assume a fixed interest rate for the full loan term, repayments made on time, and no additional fees. Actual repayments may differ based on lender fees, comparison rate, rounding conventions, and variable rate movements.
This calculator does not account for establishment fees, monthly account-keeping fees, early repayment penalties, or insurance products. The ATO deductibility information is a general guide only — always consult a registered tax agent for advice specific to your circumstances.
A personal loan could be a cheaper way to finance your car than dealer finance. Compare rates and repayment terms to find the lower-cost option for your situation.
Car Loan Types in Australia
Secured vs unsecured, fixed vs variable, dealer finance vs bank
According to ASIC MoneySmart, Australian borrowers have several car finance options — each with different security arrangements, rates, and flexibility. Understanding the structure helps you choose the right product and compare offers accurately.
| Loan Type | Security | Typical Rate | Best For |
|---|---|---|---|
| Secured Car Loan Most common personal vehicle loan | Vehicle | 5–9% p.a. | New or near-new vehicles; best rate for most borrowers |
| Unsecured Personal Loan No collateral required | None | 9–18% p.a. | Older vehicles that don't qualify as security; borrowers who want flexibility |
| Dealer Finance (in-house) Via manufacturer or dealership | Vehicle | 0–9% p.a.* | Promotional rates (often 0–2%) on new vehicles — but check the vehicle price |
| Chattel Mortgage Business / ABN holders | Vehicle | 5–8% p.a. | Business owners wanting to claim GST and depreciation; ATO-compliant structure |
| Novated Lease Via employer salary packaging | Employer | Effective rate varies | PAYG employees using pre-tax salary to fund a vehicle — FBT implications apply |
*Promotional dealer rates often apply to select models and may reflect a higher vehicle price. Always compare the total cost, not just the advertised rate.
Fixed Rate
- ✓Repayment amount never changes
- ✓Easier to budget over loan term
- ✓Protected if market rates rise
- –No benefit if market rates fall
- –Early exit fees may apply
Variable Rate
- ✓Can benefit from RBA rate cuts
- ✓Often allows extra repayments
- ✓Redraw facility sometimes available
- –Repayment can rise if rates increase
- –Harder to budget long-term
Source: ASIC MoneySmart — Car Loans | National Consumer Credit Protection Act
Car Loan Rate Benchmarks
RBA cash rate and market rate context — March 2026
Car loan interest rates are always higher than the RBA cash rate — the difference reflects lender margins, credit risk, and operating costs. The RBA cash rate (4.10% p.a., March 2026) sets the base cost of funds. A competitive secured new car loan sits roughly 1–5 percentage points above this.
| Benchmark | Rate (p.a.) | Source | What it means |
|---|---|---|---|
| RBA Cash Rate | 4.10% | RBA Mar 2026 | The overnight rate — the base cost of funds for lenders |
| Avg. New Car Loan (secured) | ~8.50% | RBA Lending Rates | Market midpoint — a rate below this is a competitive deal |
| ABS CPI Inflation | 3.80% | ABS Dec 2025 | The rate at which money loses purchasing power |
How the Calculator Rates Your Interest Rate
| Rating | Condition | Meaning |
|---|---|---|
| Exceptional | Rate ≤ 4.10% (cash rate) | Below the RBA cash rate — extremely competitive, likely promotional dealer rate |
| Competitive | Rate > 4.10% and ≤ 8.50% | Between cash rate and market average — a good deal worth proceeding with |
| Above Average | Rate > 8.50% | Above the market average — consider shopping around for a better comparison rate |
For a $30,000 loan over 5 years, the difference between 7.5% and 8.5% is approximately $900 in total interest. On a $60,000 loan, the same rate difference costs approximately $1,800 more. Shopping around for a lower rate is always worthwhile — even a 0.5% difference adds up significantly over a 5–7 year term.
RBA Cash Rate — March 2026 (4.10%) | RBA Lending Rate Statistics | ABS CPI — December 2025 (3.80%)
Last verified: March 2026
New Car vs Used Car Loans
How loan rates, terms, and eligibility differ — and how to decide
Whether you finance a new or used vehicle affects your interest rate, maximum loan term, lender eligibility criteria, and the risk of negative equity. According to ASIC MoneySmart, both are valid choices — but the right one depends on your total budget, how long you plan to keep the car, and the total cost of the loan, not just the repayment amount.
| Factor | New Car Loan | Used Car Loan |
|---|---|---|
| Typical Interest Rate | 5 – 9% p.a. | 7 – 14% p.a. |
| Why rates differ | New vehicles have a known, full market value and depreciate predictably — lower lender risk means lower rates | Older vehicles are harder to value, depreciate less predictably, and carry higher repossession recovery risk — lenders price this in |
| Maximum Loan Term | Up to 7 years (most lenders) | Typically capped at 5–7 years depending on vehicle age. Many lenders cap at: loan term + vehicle age ≤ 12 years |
| Loan Amount | Up to 100% of vehicle price (some lenders) | Lenders typically lend up to the vehicle's market value — not what you agreed to pay. Overpriced used vehicles may not be fully funded |
| Depreciation Risk | High in Year 1 (15–25% drop). Negative equity risk is real in the first 1–2 years | Slower and more predictable depreciation on 2–5 year old vehicles — steepest new-car drop already absorbed |
| Dealer Finance | Promotional 0–2% rates often available from manufacturers. Always check the full vehicle price — the rate subsidy may be reflected in a higher sticker price | Dealer finance rarely offered on used cars. Most buyers use bank or broker finance |
| Warranty & Reliability | Full manufacturer warranty (typically 3–5 years). Lower short-term maintenance risk | Manufacturer warranty may have expired. Certified Pre-Owned (CPO) programs offer extended coverage on eligible vehicles |
| Stamp Duty | Calculated on full purchase price. Higher for expensive new vehicles | Calculated on purchase price or market value (whichever is higher in some states). Generally lower overall cost |
| Lender Restrictions | Few restrictions — all mainstream lenders accept new vehicles as security | Many lenders won't accept vehicles over 10–12 years old as loan security. Higher chance of needing an unsecured personal loan |
New Car — Best When
- ✓You want the lowest possible interest rate
- ✓A manufacturer promotional rate (0–2%) is available
- ✓You plan to keep the car for 5–7+ years
- ✓Warranty and reliability certainty matter to you
- ✓You need a longer loan term to manage repayments
- –Significant depreciation in first 12 months
- –Higher purchase price = higher loan amount
Used Car — Best When
- ✓You want more car for your budget
- ✓The steepest depreciation has already occurred (2–4 year old vehicle)
- ✓You plan a shorter ownership period (2–3 years)
- ✓Buying a CPO vehicle with remaining warranty
- –Higher interest rate than equivalent new car loan
- –Shorter maximum term may increase repayments
- –Lenders may cap borrowing at market value
Worked example — same budget, different choice:
New car: $35,000 loan at 7.0% p.a. over 5 years → monthly repayment ~$693, total interest ~$6,554.
Used car (same model, 3 years old): $22,000 loan at 9.5% p.a. over 5 years → monthly repayment ~$463, total interest ~$5,762.
The used car costs $792 less in total interest and has a significantly lower monthly repayment — despite the higher rate — because the principal is much smaller. Per ASIC MoneySmart, the total cost of the loan matters more than the rate alone.
Negative equity warning (new cars): A new vehicle can lose 15–25% of its value in the first year. If you borrow 90–100% of the purchase price with a small deposit, your outstanding loan balance may exceed the car's market value for the first 1–2 years. This is called negative equity — if you need to sell or the car is written off in this period, the insurance payout or sale price may not cover the loan balance. A larger deposit (10–20%) reduces this risk significantly.
Source: ASIC MoneySmart — Car Loans | RBA Lending Rate Statistics | ASIC — Comparison Rate
ATO Vehicle Expense Deductibility
When car loan interest and running costs are tax deductible — ATO rules for 2025-26
According to the ATO, car expenses — including loan interest — are only deductible when the vehicle is used to earn assessable income. The deductible amount is proportional to the business-use percentage of total kilometres driven.
| Expense | Deductible? | Condition |
|---|---|---|
| Loan Interest | Partial | Business-use proportion only. Requires logbook or c/km records. |
| Fuel / Registration / Insurance | Partial | Business-use proportion. Fully deductible if used 100% for work. |
| Depreciation | Partial | Business-use proportion. Logbook method only. Luxury Car Tax limit applies ($69,674 for 2025-26 for non-fuel-efficient vehicles). |
| Repairs & Servicing | Partial | Business-use proportion. Immediate deduction for repairs; capital improvements depreciated. |
| Parking & Tolls (work trips) | Yes — Full | Work-related parking and tolls are fully deductible under either method. |
| Private Commuting (home to work) | No | Travel between home and a regular workplace is private — not deductible. |
ATO Approved Deduction Methods (2025-26)
- ✓Claim actual business-use % of all car expenses
- ✓Highest deduction for high-business-use vehicles
- ✓Logbook valid for 5 years if use pattern unchanged
- !Requires a minimum 12-week logbook record
- !Odometer readings required for each income year
- ✓Simple — 88 cents/km for 2025-26 (ATO rate)
- ✓No receipts needed; reasonable estimate accepted
- –Capped at 5,000 business km per year
- –Maximum deduction: $4,400 (5,000 × $0.88)
- –Cannot claim separate vehicle expenses under this method
Car Loan Repayment Formulas
How repayments, total interest, and balloon payments are calculated
The annuity formula used by all lenders. Calculates the fixed periodic repayment required to fully repay a loan at a given interest rate over a set term.
P = principal | r = periodic rate | n = total repayments
To convert an annual rate to a weekly or fortnightly equivalent, use the equivalent periodic rate formula — not a simple division, which would understate the compounding effect.
n = 12 (monthly), 26 (fortnightly), 52 (weekly)
When a balloon is included, the PMT formula is modified. The repayment reduces the loan balance to the balloon amount — not zero — by the final period.
FV = balloon amount | q = (1 + r)
Total interest is the difference between the total amount you repay (including balloon) and the original net loan amount. This is the true cost of borrowing.
Always compare Total Interest — not just the repayment amount
Example: A $30,000 loan at 7.50% p.a. over 5 years has a monthly repayment of ~$601, total interest of ~$6,043, and a total repayment of ~$36,043 — 20.1% more than the original loan. Per ASIC MoneySmart, a longer term lowers repayments but significantly increases total interest.
Source: ASIC MoneySmart — Car Loans
Australian Car Loan Data
State-by-State Comparison
Market Overview: Loan Amount vs. Rate
New vs. Used Car Loans
Avg. Loan Term by State
Total Interest Cost by Loan Amount
Full Data Overview — All States 2024
| State | Avg. Loan | Avg. Rate | Avg. Term | New Loans | Used Loans | Total Loans | Total Financed |
|---|
Car Loan Policy News & Updates
The latest developments in Australian car finance regulations, consumer protections, and lending policies.
ASIC Drives Car Finance Providers to Improve Consumer Outcomes
ASIC's review of Australia's motor vehicle finance sector has exposed significant issues with loan establishment fees up to $9,000 and nearly half of consumers defaulting within 6 months of taking out car finance.
Key Findings
- High Fees: Loan establishment fees as high as $9,000 on loans of $49,000
- Early Defaults: Almost half of consumers who defaulted did so within 6 months
- Repossession Impact: 90% of repossessed vehicles had owners still owing more than half their loan
- Lenders Reviewed: 8 major lenders including Toyota Finance, Nissan Financial Services, Pepper, Plenti
ASIC Recommendations
Better training and oversight of finance distribution channels, stronger product review frameworks, and improved hardship communication.
Action for Consumers
Compare loan establishment fees before signing. Free resources available at moneysmart.gov.au/loans/car-loans.
Federal Court Rules in Money3 Responsible Lending Case
The Federal Court delivered judgment in ASIC's proceedings against Money3 Loans, finding limited contraventions of responsible lending laws when providing car finance to borrowers reliant on Centrelink payments.
Key Details
- Contraventions Found: Money3 failed to make reasonable inquiries about borrower living expenses based on bank statement data
- Claims Rejected: Court rejected ASIC's claims that Money3 entered borrowers into unsuitable loans
- Vulnerable Consumers: Case focused on borrowers largely or solely reliant on Centrelink payments
- ASIC Priority: Used car finance sold to vulnerable consumers remains an enforcement priority for 2025
What This Means
Lenders must still verify borrower expenses. ASIC continues to prioritise protecting vulnerable consumers from unsuitable car loans.
Get Help
If you have an unsuitable loan, contact AFCA at http://www.afca.org.au or National Debt Helpline: 1800 007 007.
Luxury Car Tax: Fuel-Efficient Definition Tightened to 3.5L/100km
From 1 July 2025, the definition of a "fuel-efficient vehicle" for LCT purposes has changed from 7L/100km to 3.5L/100km, meaning many hybrids and efficient petrol vehicles will now pay higher LCT.
Key Changes
- New Definition: Fuel-efficient vehicles must now consume ≤3.5L/100km (was 7L/100km)
- Fuel-Efficient Threshold: $91,387 (unchanged from 2024-25)
- Other Vehicles Threshold: $80,567 (unchanged from 2024-25)
- LCT Rate: 33% on amount above threshold
- Impact: Many hybrids now fall into "other vehicles" category with lower threshold
Who Qualifies
Only EVs and plug-in hybrids typically qualify for the $91,387 threshold. Most petrol/diesel hybrids now face the $80,567 limit.
Impact on Car Loans
LCT increases total vehicle cost, affecting loan amounts. Check if your chosen vehicle triggers LCT before financing.
Car Depreciation Limit for 2025-26: $69,674
The car limit for calculating depreciation deductions remains at $69,674 for the 2025-26 financial year. This is the maximum cost you can use when working out depreciation on a business vehicle.
Key Details
- Car Limit 2025-26: $69,674 (same as 2024-25)
- Maximum GST Credit: $6,334 (1/11 × $69,674)
- Applies To: Passenger vehicles carrying <1 tonne and <9 passengers
- Note: Limit includes GST if not GST-registered
For Business Owners
Even if your car costs $100,000, you can only claim depreciation on $69,674. Plan your vehicle purchase accordingly.
Novated Leases
The Luxury Vehicle Limit affects lease charges. Cars over $69,674 may attract a Luxury Car Charge in novated leases.
$20,000 Instant Asset Write-Off Extended to 30 June 2026
The government has extended the $20,000 instant asset write-off for small businesses for another 12 months. Eligible businesses can immediately deduct the cost of assets under $20,000, including work vehicles.
Key Details
- Threshold: $20,000 per asset (GST-exclusive if registered for GST)
- Period: Assets first used between 1 July 2025 and 30 June 2026
- Eligibility: Small businesses with aggregated turnover under $10 million
- Car Limit: Still applies - passenger vehicles capped at $69,674 for depreciation
Practical Use
Buy a used work ute for $18,000? Write off the full business portion immediately instead of depreciating over years.
Passenger Cars
Passenger vehicles cannot be fully written off - the car limit still applies regardless of purchase price.
FBT Exemption for Plug-in Hybrids Ends: Only Full EVs Now Qualify
From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) no longer qualify for the FBT exemption. Only battery-electric and hydrogen fuel cell vehicles remain eligible for the electric car FBT exemption.
Key Changes
- PHEVs Excluded: No longer considered "zero or low emissions vehicles" for FBT
- Transitional Rule: Existing PHEVs with pre-1 April 2025 financially binding commitments may continue exemption
- Still Exempt: Battery-electric vehicles (BEVs) and hydrogen fuel cell vehicles
- Price Limit: Must be below LCT threshold ($91,387 for fuel-efficient) at first retail sale
Novated Lease Impact
New PHEV novated leases after 1 April 2025 will attract FBT. Consider full EVs for maximum tax savings.
Existing Arrangements
If your PHEV lease started before 1 April 2025 with a binding commitment, the exemption may continue until lease ends.
ASIC Launches Major Review of Motor Vehicle Finance Sector
ASIC announced a comprehensive review of the car finance industry, focusing on outcomes for regional consumers and First Nations communities, with misconduct in used car finance a key enforcement priority.
Review Scope
- 7 Major Lenders: Initially reviewing practices of 7 car finance providers
- Focus Areas: Loan assessment, responsible lending, hardship support, dispute resolution
- Vulnerable Consumers: Particular focus on regional, remote and First Nations communities
- Brokers: Will identify intermediaries to include as review progresses
Enforcement
ASIC will take enforcement action where appropriate. Current proceedings against Money3 and Diamond Wheels dealership.
Consumer Resources
Free car loan comparison tools at moneysmart.gov.au. Indigenous consumers: 1300 365 957.
Electric Car FBT Exemption: LCT Thresholds Updated
The FBT exemption for eligible electric cars continues, with updated LCT thresholds. Vehicles must be below $91,387 (fuel-efficient) or $80,567 (other) at first retail sale to qualify.
Eligibility Requirements
- Vehicle Type: Battery-electric, hydrogen fuel cell, or plug-in hybrid (PHEVs until March 2025)
- First Used: Must be first held and used on or after 1 July 2022
- Price Limit: Below LCT threshold at first retail sale
- Car Definition: Must carry <1 tonne load and <9 passengers
What's Exempt
Private use of eligible EV and cost of charging (including home electricity). Benefit is still reportable.
Home Charging Rate
ATO shortcut: 4.20 cents per km for calculating home electricity costs (PCG 2024/2).
ASIC Takes Action Against Swoosh Finance for Responsible Lending Breaches
ASIC filed civil penalty proceedings against Swoosh Finance alleging breaches of responsible lending obligations when providing credit contracts secured against vehicles, with interest rates of 47%.
Key Allegations
- Interest Rate: 47% annual interest on loans typically $2,000-$3,000
- Upfront Fees: More than $400 charged on small loans
- Vulnerable Borrowers: Many had multiple loans, buy-now-pay-later commitments, signs of financial stress
- Security: Borrowers used their cars as security for loans
Warning Signs
Be cautious of lenders who don't thoroughly check your financial situation or charge very high interest rates.
Need Quick Cash?
Check Moneysmart for alternatives. Free financial counsellor advice: 1800 007 007.
Deferred Sales Model: 4-Day Cooling Off for Add-on Car Insurance
ASIC's deferred sales model requires a 4-day pause between car purchase and the sale of add-on insurance products at dealerships, protecting consumers from pressure sales tactics.
How It Works
- 4-Day Deferral: Dealers cannot sell add-on insurance until 4 days after you agree to buy a car
- Products Covered: Gap insurance, loan protection insurance, extended warranties sold at dealerships
- Consumer Information: Must be provided online information before making purchase decision
- Purpose: Give consumers time to consider if they actually need the product
Your Rights
Use the 4-day period to research. Compare standalone products from other insurers - they're often cheaper.
Past Problems
ASIC secured $130+ million in refunds from past add-on insurance misconduct. You may be entitled to refunds.
Frequently Asked Questions
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About this calculator
This calculator provides estimates for educational purposes. Interest rates and fees vary by lender and are subject to approval. Rates shown are indicative only and updated regularly but may not reflect current market conditions. Always verify rates directly with lenders before making decisions.