Work out your car loan repayments, total interest and the real cost once fees and any balloon payment are included. Borrowing $35,000 at 8.5% over 5 years costs $718.08 a month and $8,084.72 in interest.
Car Loan Calculator
Repayments with fees and a balloon payment · Updated 12 October 2026
- Fortnightly (approx.)
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- Weekly (approx.)
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- Balloon due at the end
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- Total interest
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- Total cost of the loan
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- Effective rate including fees
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Fortnightly and weekly figures are the monthly repayment × 12 ÷ 26 or ÷ 52. Lenders’ comparison rates use a standard loan of $30,000 over 5 years, so they can differ from the effective rate shown here.
How repayments are calculated
The loan amount is the car price minus your deposit or trade-in, plus any establishment fee added to the loan. Repayments are worked out monthly over the term so that the loan is fully repaid, or reduced to the balloon amount, by the end.
Examples
| Loan | Rate and term | Monthly repayment | Total interest |
|---|---|---|---|
| $20,000 | 7% over 3 years | $617.54 | $2,231.51 |
| $35,000 | 8.5% over 5 years | $718.08 | $8,084.72 |
| $35,400 ($400 fee added) | 8.5% over 5 years + $10/month fee | $736.29 | $8,177.11 |
| $40,000 with a 30% balloon ($12,000) | 9% over 5 years | $671.23 | $12,274.04 |
In the third example, fees lift the effective rate from 8.5% to about 9.57% a year. That is why lenders must quote a comparison rate alongside the advertised rate.
Balloon payments
- A balloon (or residual) is a lump sum you owe at the end of the loan. It lowers your regular repayments.
- You pay interest on the balloon amount for the whole term, so total interest is higher.
- At the end you need to pay it in cash, refinance it or sell the car, which may be worth less than the balloon.
FAQs
Secured or unsecured?
Most new car loans are secured against the car, which usually means a lower rate. Unsecured personal loans cost more but the car isn’t at risk if you fall behind.
How do interest rates affect car loans now?
Car loan rates move with lenders’ funding costs. The Reserve Bank’s cash rate was raised to 4.60% from 30 September 2026, so new fixed-rate car loans have generally become more expensive.
Related calculators
- Fuel Cost CalculatorWhat the car will cost to run
- Pay Calculator 2026–27What you can afford from your pay
Sources
Figures current as of 12 October 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.