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Estimate your car loan repayments, total interest and overall borrowing cost before you finance your next vehicle.

Enter your loan amount, interest rate and loan term to compare different scenarios and see how changes to your finance could affect what you pay.

Car Loan Calculator

How to Use This Car Loan Calculator

Getting your estimate takes just a few seconds. Enter a few details about the car and your proposed loan:

Enter the car price — the purchase price of the vehicle.
Add your down payment — enter any money you plan to pay upfront.
Add your trade-in value — if you are trading in a vehicle, enter its estimated value. Otherwise, leave this at $0.
Enter the interest rate — use the annual rate offered by your lender or finance provider.
Choose the loan term — select how many years you expect to repay the loan.

The calculator automatically estimates your loan amount, monthly repayment, total interest, total amount repaid and estimated payoff date.

Try changing the down payment, interest rate or loan term to compare different scenarios. A shorter loan term will usually mean higher monthly repayments but less total interest, while a longer term may lower your monthly repayment but increase the overall cost of the loan.

How Car Loans Work

A car loan lets you borrow money to purchase a new or used vehicle and repay it over an agreed period, usually through regular repayments plus interest.

Car loans can be secured or unsecured. With a secured car loan, the vehicle is generally used as security for the loan. This can sometimes result in a lower interest rate than an unsecured loan, but the lender may be able to repossess the vehicle if you fail to meet your repayment obligations.

Car finance may be available through banks, credit unions, online lenders and dealerships. Interest rates, fees, eligibility requirements and loan conditions can vary, so it is important to compare the overall cost of borrowing rather than looking only at the advertised interest rate.

Loan Term and Repayments

Car loan terms can vary from a few years to much longer repayment periods. Choosing a longer term can reduce your monthly repayment, but it can also increase the total interest you pay over the life of the loan.

A shorter term generally means higher monthly repayments but less total interest.

Use the calculator above to compare the same car price over different loan terms, such as 3, 5 and 7 years, and see how the monthly repayment and total interest change.

New vs Used Car Loans

Car loans may be available for both new and used vehicles, although interest rates and lending conditions can differ.

Some lenders may also have restrictions on the age, value or type of vehicle they will finance. Before choosing a loan, check the lender's interest rate, fees, eligibility requirements and any conditions relating to extra repayments or paying the loan off early.

Types of Car Finance Available

There are several ways to finance a car purchase. Understanding how each option works can help you compare borrowing costs and choose an option that suits your budget and circumstances.

Secured car loan
With a secured car loan, the vehicle is used as security for the loan. Because the lender has an asset securing the debt, secured loans may offer lower interest rates than unsecured borrowing. If you fail to meet your repayment obligations, the lender may have the right to repossess the vehicle, subject to applicable laws and the loan agreement.

Unsecured personal loan
An unsecured personal loan does not use the vehicle as security. This can provide more flexibility over the type or age of vehicle you purchase, although interest rates may be higher because the lender is taking on more risk.

Dealer finance
Many car dealerships offer financing through lenders or finance partners. Dealer finance can be convenient because you can arrange the vehicle and financing in one place, but convenience does not necessarily mean the lowest overall cost. Compare the interest rate, fees, loan term and total repayments with other financing options before accepting an offer.

Bank, credit union or online lender
You may also arrange a car loan directly through a bank, credit union or online lender. Getting quotes before visiting a dealership can help you understand how much you may be able to borrow and give you another financing option to compare with dealer finance.

Car loan vs personal loan
A secured car loan may offer a lower interest rate because the vehicle acts as security. An unsecured personal loan may provide greater flexibility, particularly if the vehicle does not meet a lender's requirements for secured finance.

The better option depends on the interest rate, fees, loan term, monthly repayment and total amount you will repay — not simply which loan has the lowest advertised monthly payment.

Use our Personal Loan Calculator to compare estimated personal loan repayments with your car loan results.

a white car parked on the side of a road

What Affects Your Car Loan Interest Rate?

Car loan interest rates can vary significantly between lenders and borrowers. The rate you are offered depends on several factors, including your credit history, the vehicle, the loan term and the lender's assessment of your application.

Credit history and credit score
Your credit history can be an important factor when a lender assesses your application. A stronger credit profile may help you qualify for more competitive rates, while a weaker credit history may result in a higher rate or fewer available loan options.

New vs used car
The age, value and condition of the vehicle can affect the interest rate available. Some lenders offer different rates for new and used vehicles, while older or higher-mileage vehicles may have additional lending restrictions.

Loan term
Your chosen repayment period can affect both your interest rate and the total interest you pay. Even when the interest rate stays the same, a shorter loan term generally means less total interest because you are borrowing the money for less time. However, your regular repayments will usually be higher.

Deposit amount
Making a larger deposit reduces the amount you need to borrow. Depending on the lender and loan structure, this may strengthen your application and reduce the overall amount of interest you pay.

Secured vs unsecured loan
A secured car loan uses the vehicle as security for the debt and may offer a lower interest rate than an unsecured loan. However, rates vary considerably, so compare the complete cost of each option rather than assuming a secured loan will always be cheaper.

Lender and loan fees
Banks, credit unions, online lenders and dealer finance providers may offer different interest rates, fees and loan conditions. Compare several offers and consider establishment fees, ongoing fees, early repayment charges and other costs that may affect the total amount you repay.

Interest rate vs total loan cost
The lowest advertised interest rate does not necessarily mean the cheapest loan. When comparing car finance, look at the interest rate, fees, loan term, regular repayment and total amount repayable.

New vs Used Car Loans

Whether you buy a new or used vehicle can affect more than the purchase price. It may also influence your financing options, interest rate, loan amount and overall cost of ownership.

Buying a new car
New vehicles often come with manufacturer warranties, newer technology and the advantage of knowing the vehicle's full history. Some lenders may also offer more competitive financing rates for newer vehicles. However, new cars can depreciate quickly, particularly during the first few years. If you borrow a large portion of the purchase price, there may be a period when you owe more on the loan than the vehicle is worth.

Buying a used car
Used vehicles generally have a lower purchase price and may have already experienced a significant portion of their initial depreciation. This can reduce the amount you need to borrow. However, financing terms can vary based on the vehicle's age, mileage, condition and value, and some older vehicles may not qualify for certain secured car loans.

Certified pre-owned vehicles
Some manufacturers and dealerships offer certified pre-owned vehicles that have undergone inspections and may include additional warranty coverage. These vehicles can provide a middle ground between buying new and buying a standard used vehicle, although prices, warranties and financing options vary between programs.

Which option costs less overall?
Don't compare new and used cars based only on the monthly loan repayment. Consider the purchase price, deposit, interest rate, loan term, total interest, insurance, maintenance and expected depreciation when comparing your options.

a couple of cars parked next to each other

Tips to Get a Better Car Loan Deal

Getting the right car loan can reduce your borrowing costs and potentially save you a significant amount of interest over the life of the loan. Before choosing finance, compare the complete cost of several options rather than focusing only on the monthly repayment.

Check your credit before you apply
Reviewing your credit history before applying can help you understand how lenders may assess your application. It also gives you an opportunity to check for errors and address any issues before applying for finance.

Consider getting pre-approved before visiting a dealer
Pre-approval can give you a clearer idea of your borrowing limit and potential repayments before you start shopping. It can also give you another financing option to compare with any finance offered by the dealership.

Compare the total cost, not just the interest rate
A low advertised interest rate does not necessarily mean a loan is cheaper overall. Compare the interest rate, fees, loan term, regular repayment and total amount repayable before choosing a loan.

Negotiate the car price separately from the finance
When buying from a dealership, consider agreeing on the vehicle price before discussing financing. Keeping the purchase price and loan terms separate can make it easier to understand what you are actually paying for the car and what the finance will cost.

Consider a shorter loan term
A longer loan term can reduce your regular repayments, but it generally increases the amount of interest you pay over time. If your budget allows, compare shorter and longer terms using the calculator to see the difference in both repayments and total interest.

Make a larger deposit if it suits your budget
A larger deposit reduces the amount you need to borrow. This can lower your repayments and reduce the total interest charged over the life of the loan.

Make extra repayments when allowed
Extra repayments can help reduce your outstanding balance and shorten your loan term. Before making additional payments, check whether your lender allows them and whether any early repayment fees or restrictions apply.

Compare several lenders
Rates, fees and lending criteria can vary considerably. Comparing offers from banks, credit unions, online lenders and dealer finance providers can help you understand the options available before committing.

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Use our Loan Repayment Calculator to compare different repayment amounts, interest rates and loan terms before choosing a car loan.

Frequently asked questions

1. How does a car loan calculator work?
A car loan calculator uses the loan amount, interest rate and loan term you enter to estimate your regular repayments, total interest and overall repayment cost. The results are estimates and may not include every lender fee or charge.

2. How much will my car loan repayments be?
Your repayments depend mainly on how much you borrow, your interest rate and the length of the loan. A larger loan or higher interest rate generally increases your repayments, while a longer loan term can reduce the regular payment but increase total interest.

3. Is a shorter car loan term better?
A shorter loan term usually means higher regular repayments but less interest paid overall. A longer term can make repayments more affordable each month, but you may pay considerably more interest over the life of the loan.

4. Does a larger deposit reduce car loan repayments?
Yes. A larger deposit reduces the amount you need to borrow. This can lower your regular repayments and reduce the total interest you pay, assuming the other loan terms remain the same.

5. Do new and used cars have different loan interest rates?
They can. Some lenders offer different rates depending on the vehicle's age, value and condition. Older vehicles may also have additional financing restrictions, so it is worth comparing loan options before choosing a car.

6. Can I pay off a car loan early?
Many car loans allow additional repayments or early payoff, but conditions vary between lenders. Check your loan agreement for early repayment fees, limits or other restrictions before making additional payments.

7. What should I compare when choosing a car loan?
Don't compare loans based only on the advertised interest rate or monthly repayment. Consider the interest rate, fees, loan term, repayment amount, total interest and total amount repayable.

8. Are the results from this car loan calculator exact?
No. The calculator provides an estimate based on the information you enter. Your actual repayments may differ because of lender fees, interest calculation methods, repayment frequency, loan conditions and other charges.

Know Your Numbers Before You Buy

Understanding the full cost of a car loan before you commit can help you make a more informed borrowing decision. Use this Car Loan Calculator to compare loan amounts, interest rates and repayment terms and see how each change could affect your repayments and total interest.

Remember that a lower monthly repayment does not always mean a cheaper loan. A longer loan term may reduce your regular repayments while increasing the total amount of interest you pay over time.

Before choosing a loan, compare the interest rate, fees, loan term, regular repayment and total amount repayable.

You can also explore our Personal Loan Calculator to compare another borrowing option or use our Debt Consolidation Calculator to estimate the cost of combining existing debts.