Alasdair Duncan



Use Canstar’s Car Loan Repayment Calculator to estimate your repayments and see how much interest you could pay.

Simply enter the amount you wish to borrow, the current interest rate, the loan term and how often you will make repayments (monthly, fortnightly or weekly).

Please note: The calculations on this page do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Consider seeking financial advice from a qualified adviser before applying for any credit product.

Car Loan FAQs

A car loan is a type of personal loan that can be used to buy a new or used car. A car loan can be helpful if you need a car and don’t have enough savings to buy one, but you can afford to make regular loan repayments.

You will need to repay the amount borrowed, plus interest and any fees, over an agreed period of time (known as the loan term). Once you have made all your repayments, you will own the vehicle outright.

Your car is usually used as security for the loan. That means your lender can repossess your car and sell it if you don’t make your repayments on time. Some lenders offer unsecured car loans (with no security), but they often have higher interest rates and are more common if you are purchasing a used car.

Canstar’s Car Loan Repayment Calculator (above) can help you figure out your estimated repayments and the total interest payable. Your car loan repayments will depend on how much you borrow, the loan term, interest rate and fees charged.

The car loan calculator does not consider fees, so it’s best to check with your individual lender to see what fees may apply.

Most banks offer secured car loans in the range of $10,000 to $100,000, according to Westpac. But the amount you will be able to borrow really depends on your own situation.

When you apply for a car loan, the lender will take a good look at your financials and how much money you have coming in and going out to determine whether you can afford your repayments. But you can also get an idea of your borrowing power yourself by using our car loan repayment calculator and seeing how those results line up with your budget.

It depends on the loan term you choose and whether you make additional repayments. By taking out a loan with a longer term, you will usually be able to get lower repayments. However, it also means you’ll typically pay more in interest in the long run, so the car will end up costing you more.

Here’s an example showing the difference between a 5-, 7- or 10-year car loan (excluding any fees) for the same $10,000 amount. In this example, you’d pay more than double the amount of interest by choosing a 10-year loan over a 5-year loan. You can use our car loan calculator to see the difference in cost for different terms.

Total cost of a $10,000 car loan for different loan terms

← Mobile/tablet users, scroll sideways to view full table → 

Term
(years)
5 7 10
Interest
rate
8.70% 8.70% 8.70%
Monthly
repayments
$206 $159 $125
Total
interest
$2,368 $3,387 $5,007
Total cost
of car
$12,368 $13,387 $15,007

Source: www.canstar.com.au – 24/07/2023. Based on secured  car loans available for a $10,000 loan and the average interest rate of a five-year term. Assuming a P&I loan repaying monthly, with a fixed rate. Average interest rate calculations use the midpoint of the rate range.

Check if you can make additional repayments on your loan and whether any fees apply. Making extra repayments can help you pay off your loan quicker and save you interest.

Yes, your credit score is a factor that lenders usually look at when deciding whether to approve your car loan and what interest rate to offer you. If you have a higher credit score, you may be offered a lower interest rate.

Yes, you can refinance your car loan, which would replace an existing loan with another one under new terms. A refinance car loan is one way you may be able to get a better deal that lowers your repayments and gives you greater flexibility over your car loan. But there are some costs and risks to consider as well, such as exit fees to switch car loans or features on the refinanced loan that don’t stack up to your previous loan.

Here are some factors to consider before you apply for a car loan:

  • Interest rates – the car loan interest rate will have a big impact on your repayments and the overall cost of the loan. You can get either a fixed interest rate (which stays the same) or a variable interest rate (which can change).
  • Fees – common fees include application, annual, late payment, additional repayment and early repayment fees.
  • Repayments – you can usually make monthly, fortnightly or weekly repayments. If you don’t make your repayments on time, you may be charged a late fee and your credit score could be negatively impacted.
  • Loan term – if you choose a longer loan term, you’ll usually get lower repayments but you’ll pay more interest in total.
  • Features – check whether there are any penalties for making additional repayments or paying off your loan early. Take care with car loans that offer ‘balloon payments’, which is when you make a lump sum repayment at the end of the loan term. Under this arrangement, you can lower your repayments but you’ll usually pay more for the loan overall.

Make sure to read the lender’s documentation carefully so you understand how much you will be charged in interest and fees and any other terms and conditions that apply.

If you are taking out a car loan, some lenders will require you to have comprehensive car insurance in place. Comprehensive car insurance covers you for damage to your vehicle and damage you cause to other people’s property in a range of circumstances.

You can compare comprehensive car insurance policies with Canstar.


This page was reviewed by our Editor-in-Chief Nina Rinella before it was updated, as part of our fact-checking process.


About the Author:

Alasdair DuncanAlasdair Duncan is a Senior Finance Journalist at Canstar, specialising in home loans, property and lifestyle topics. He has written more than 200 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo FinanceThe New DailyThe Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.

In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.

When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn and Twitter.