Loan & Car Loan Calculator

Repayments, the real cost including fees, and whether refinancing is a saving or a longer term wearing a disguise.

Your loan
Use the comparison rate where you have it: it folds fees into a single figure.
Common on Australian personal and car loans — often $200–$600, sometimes more.
Optional. Check for early-repayment charges first.
Leave at zero to skip the comparison.
Exit fee, new establishment fee, anything payable to make the swap.

How this is worked out

Repayments use the standard amortisation formula:

M = P · r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

where P is the amount borrowed, r is the annual rate divided by twelve and n is the number of monthly repayments. Interest is charged on the outstanding balance, so the interest portion of each identical repayment falls as the balance does.

An establishment fee is added to the total cost of borrowing rather than to the repayment, because it is usually charged upfront or deducted from the advance. If your lender capitalises it into the loan, add it to the amount borrowed and leave the fee at zero.

The comparison rate you see advertised is a different thing again: it folds fees into a single percentage using a standardised example — $30,000 over five years for a secured car loan, $10,000 over three years for an unsecured personal loan. If your loan is not that size, the comparison rate is indicative rather than exact, which is why this calculator takes the rate and the fee separately.

A worked example

Amount borrowed
$35,000
Rate / term
8.5% over 5 years
Monthly repayment
$718.08
Total interest
$8,084.72
Establishment fee
$0
Total cost of borrowing
$8,084.72
Total repaid
$43,084.72

The comparison rate exists because the advertised rate is not the cost

Australian lenders must publish a comparison rate alongside any advertised interest rate. It folds establishment fees and ongoing monthly fees into a single percentage so that two loans can actually be compared. A 7.99% loan with a $600 establishment fee and $10 a month in account keeping fees is not cheaper than an 8.99% loan with no fees, and the comparison rate is what reveals that.

Its limitation is that it is calculated on a fixed example — typically $30,000 over five years secured, or $10,000 over three years unsecured. Borrow a different amount over a different term and the true figure moves, because fixed-dollar fees matter more on small loans and less on large ones.

Enter the comparison rate if that is all you have. Enter the interest rate plus the fees separately if you have both — it is more accurate for your actual loan.

Balloon payments, and why the repayment looks so low

Many Australian car loans, and almost all novated leases, include a residual or balloon payment — a lump sum due at the end of the term, often 30% to 50% of the purchase price. It makes the monthly repayment dramatically lower and is frequently presented as if it were simply a better deal.

It is not. You pay interest on the balloon for the entire term without reducing it, and at the end you either find the lump sum, sell the car, or refinance the balloon into a new loan at whatever rate applies then. This calculator does not model balloon payments, because the honest comparison is against a fully amortising loan.

If you are considering one, calculate the fully amortising repayment here first. That is what the car actually costs per month. The difference is deferral, not saving.

Responsible lending, and what the lender must check

Under the National Consumer Credit Protection Act, a lender must make reasonable inquiries into your requirements and financial situation, verify what you tell them, and assess whether the loan is unsuitable. A loan you cannot afford without substantial hardship is unsuitable and should not be written.

You are entitled to a copy of the credit assessment on request. If a loan has gone badly wrong and the assessment was inadequate, the Australian Financial Complaints Authority handles disputes free of charge and its determinations bind the lender.

Practically, this means the affordability question is not only yours to answer. If a lender is pushing a term or an amount you are uncomfortable with, that discomfort is relevant to whether the loan should exist.

Extra repayments, early payout fees, and refinancing

Variable-rate personal loans generally allow unlimited extra repayments. Fixed-rate loans often charge an early payout fee, sometimes several hundred dollars, and the fee is disclosed in the credit contract rather than the advertisement.

On the worked example, an extra $100 a month clears the loan eight months early and saves $1,239 in interest. Confirm first that extra repayments reduce the principal rather than being held as an advance payment.

For refinancing, add the early payout fee on the old loan and the establishment fee on the new one into the switching cost field. The comparison panel reports break-even in months and states plainly if the new loan lowers the repayment while raising the total.

Assumptions and sources

Amortisation formula
Standard annuity formula applied monthly. Verified in tools/test/finance.mjs against published repayment tables.
Comparison rate
Required under the National Credit Code; calculated on a standardised example ($30,000 / 5 years secured, $10,000 / 3 years unsecured). checked 2026-08
Responsible lending
National Consumer Credit Protection Act 2009 — inquiry, verification and unsuitability assessment obligations. checked 2026-08
Rate and fees
You enter your own figures. Establishment fees commonly range from about $200 to $600 on personal and car loans.
Rates current as of 2026/27 — verify before relying on this. Comparison rates are calculated on a standard example and may not reflect your loan size or term. Read the credit guide and the schedule of fees before signing.
Questions

What people ask about loans in Australia

What is a comparison rate and should I use it?

It folds establishment and ongoing fees into one percentage so loans can be compared honestly. Use it if it is all you have, but it is calculated on a standard example — $30,000 over five years secured — so it is only exact for a loan of that shape. Entering the rate and fees separately is more accurate.

Is a balloon payment a good idea?

It lowers the repayment and raises the total, because you pay interest on the balloon for the whole term without reducing it. At the end you must find the lump sum, sell the car or refinance. Calculate the fully amortising repayment here first — that is what the car actually costs.

Can I make extra repayments?

On a variable-rate loan, almost always. On a fixed-rate loan there is often an early payout fee disclosed in the credit contract. Check before assuming, and confirm that extra repayments reduce the principal rather than sitting as an advance payment.

Is dealer finance worse than a bank or credit union?

The dealer earns a margin on the rate they arrange, so it is rarely the cheapest — though manufacturer-subsidised rates on specific models can genuinely beat everyone. Get a pre-approval elsewhere first so you have a figure the dealer has to beat.

What if I cannot afford the repayments?

Contact the lender and ask for hardship assistance — they are required to consider a hardship notice, and doing so early gives you far more options. The National Debt Helpline offers free financial counselling, and AFCA handles disputes with lenders at no cost.

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