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Loan Repayment Calculator — Car Loans & Personal Loans

Free Australian car loan calculator and personal loan repayment calculator. Enter your loan amount, interest rate and term to see monthly repayments and total interest paid.

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Understanding loan repayments — how the maths works

Loan repayments are calculated using an amortisation formula that keeps your monthly payment constant while the split between principal and interest shifts over time. In early years, most of each repayment is interest. In later years, most is principal.

This is why the first few years of a long loan feel like you're barely making a dent — you're mostly paying interest on the full balance. As the principal reduces, the interest component shrinks and more of each payment chips away at the debt.

🦘 Fun fact: The difference between a 25-year and a 30-year loan on $600,000 at 6% is about $160,000 in total interest. That's a lot of money to spend on extra years of debt. The monthly repayment difference is roughly $400 — significant, but worth knowing the true cost.

Car loans vs personal loans in Australia

When financing a vehicle in Australia, you have two main options: a secured car loan or an unsecured personal loan. Understanding the difference helps you choose the right product and minimise interest costs.

Secured car loans use the vehicle as security (collateral). If you default, the lender can repossess the car. Because the lender's risk is lower, secured car loan rates are typically 5.5–9% p.a. — significantly cheaper than unsecured options. The trade-off: the lender holds an encumbrance on the vehicle until the loan is fully paid.

Unsecured personal loans don't require collateral, so you own the asset outright from day one. Rates are higher (7–15% p.a.) because the lender carries more risk. Personal loans are more flexible — you can use them for anything, not just a car — but the total interest cost is typically thousands more over the same term.

For most Australians buying a car, a secured car loan offers the best rate. If you want a dedicated car finance tool with balloon payment options, try our car finance calculator.

Frequently asked questions

How much are car loan repayments in Australia?

On a $30,000 car loan at 7.5% over 5 years, monthly repayments are approximately $601, with total interest of about $6,060. Australian car loan rates typically range from 5.5% to 12%, depending on the lender, whether the loan is secured or unsecured, and the age of the vehicle. New car loans generally attract lower rates than used car loans.

What is the difference between a car loan and a personal loan?

A car loan (secured) uses the vehicle as collateral — lower rates (5.5–9%) but the lender holds security over the car. A personal loan (unsecured) has no collateral — higher rates (7–15%) but you own the asset outright. Car loans may restrict you from selling until paid off. For most car purchases, a secured loan offers the best rate.

Should I choose a shorter or longer loan term?

Shorter terms mean higher monthly repayments but much less total interest. A $30,000 car loan at 7.5% costs about $6,060 in interest over 5 years but $9,850 over 7 years — $3,790 extra. Choose the shortest term you can comfortably afford. Most Australian car loans run 3–7 years.

Can I pay off my loan early in Australia?

Most variable rate loans allow early repayment without penalty. Fixed rate loans may charge a break cost. Under Australian Consumer Law, lenders must allow early repayment but can charge a reasonable fee. Check your contract before signing. Even small extra repayments reduce total interest significantly.

How do I calculate my loan repayments?

Loan repayments use the amortisation formula. Enter your loan amount, interest rate, and term in the calculator above for an instant result. For example, a $25,000 personal loan at 9% over 5 years has a monthly repayment of approximately $519.

Related calculators:

Car Finance Calculator Mortgage Calculator Compound Interest