Calculate your monthly repayments and total cost for any car or personal loan
Loan repayments are calculated using the amortisation 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 months. Each repayment covers the interest owed plus a portion of the principal.
Car loan interest rates in Australia typically range from 5% to 15% per annum depending on the lender, your credit history, and whether the loan is secured (against the car) or unsecured. As of 2025-26, average new car loan rates are around 6–9% p.a.
You can reduce total interest by: making a larger deposit (smaller loan amount), choosing a shorter loan term, making extra repayments, or finding a lower interest rate. Even small extra repayments can significantly reduce the total interest paid.
A secured loan uses an asset (usually the car) as collateral. If you default, the lender can repossess the asset. Secured loans typically have lower interest rates. An unsecured personal loan has no collateral and usually carries a higher interest rate.
Most Australian lenders allow early repayment, but some charge early repayment fees (break costs). Check your loan contract for any early repayment clauses before making extra repayments.