Car Loan Calculator Australia โ FY 2025-26
Calculate your car loan repayments with optional balloon payment. Compare two loan offers including fees. See if a novated lease saves you money compared to a personal car loan. Rates vary by lender and credit profile.
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How to Use This Calculator
Repayment tab
Enter the car price, deposit (or trade-in value), loan term, interest rate, and optional balloon payment percentage. The calculator shows your monthly repayment, total repaid, total interest, balloon amount due at end, and the effective cost of the car including interest.
Compare Offers tab
Enter two loan offers with different rates, terms, and fees. See the monthly difference, total cost difference, true comparison rate (including fees), and which offer is the better deal overall.
Buy vs Novate tab
Enter the car price, your gross salary, a loan rate for comparison, and whether the car is petrol or EV. See the annual cost difference between a personal car loan and a novated lease, including the tax benefit of salary sacrifice.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to your partner, broker, or accountant.
The Formula
PMT = P × r × (1 + r)n / ((1 + r)n − 1)
Where:
P = Loan amount (car price − deposit)
r = Monthly interest rate (annual rate / 12)
n = Total number of monthly payments (years × 12)
With Balloon Payment:
PMT = [P × r × (1 + r)n − FV × r] / [(1 + r)n − 1]
Where FV = Balloon amount (car price × balloon %)
Total Interest:
Total Interest = (PMT × n + Balloon) − Loan Amount
Comparison Rate:
By law (NCCP Act), the comparison rate is calculated on a $30,000 loan over 5 years, including most fees. It gives a standardised true cost for comparison.
Worked Example
$40K Car, $5K Deposit, 5 Years at 7.5%
A typical Australian car purchase with a secured car loan.
Step 1: No balloon payment
Step 2: With 30% balloon ($12,000)
Verdict: A 30% balloon reduces your monthly payment by $168, but you pay $1,920 more in total interest AND have a $12,000 lump sum due at end of year 5. Balloons make sense if you plan to trade in or sell the car, but can be a trap if you are not prepared for the final payment.
Australian Car Loan Rate Snapshot (March 2026)
Typical car loan rates by type
| Loan Type | Rate Range | Note |
|---|---|---|
| New car (secured) | 6.0% – 9.0% | Car is security; lower risk to lender |
| Used car (secured) | 6.5% – 10.0% | Higher rate due to depreciation |
| Unsecured personal loan | 7.0% – 12.0% | No security; higher risk, higher rate |
| Dealer finance | 7.0% – 14.0% | Convenient but often higher rates |
| Manufacturer 0% finance | 0.0% – 1.9% | Promotional; limited models, may inflate car price |
Rates are indicative as at March 2026. Actual rates depend on credit score, loan amount, and lender. Sources: RateCity.com.au, Finder.com.au.
Luxury Car Tax (LCT) thresholds FY 2025-26
| Category | Threshold | LCT Rate |
|---|---|---|
| General vehicles | $76,950 | 33% |
| Fuel-efficient vehicles (incl. EVs) | $91,387 | 33% |
LCT is charged on the GST-inclusive price above the threshold. Fuel-efficient = combined fuel consumption ≤ 7L/100km. Source: ATO (ato.gov.au).
Balloon payment comparison
| Balloon % | Monthly (on $35K) | Total Interest | Lump Sum |
|---|---|---|---|
| 0% (no balloon) | $701 | $7,060 | $0 |
| 10% | $645 | $7,700 | $4,000 |
| 20% | $589 | $8,340 | $8,000 |
| 30% | $533 | $8,980 | $12,000 |
Based on $40K car, $5K deposit, 5 years at 7.5%. Higher balloon = lower monthly but more total interest and a large payment at end.