Written by Before you apply for your car loan, it’s important to understand how much it might cost you. You can use Savvy’s simple car loan repayment calculator to determine what your weekly, fortnightly, monthly and overall repayments might be for any loan amount, term and interest rate. You can even compare what your savings could be based on a loan with an upfront deposit.
Car Loan Repayment Calculator
How do I use Savvy’s car loan repayment calculator?
Savvy’s car loan repayment calculator is very simple to use. All you’ll need to input is your desired loan amount, preferred repayment term, an estimate of your interest rate and the size of your deposit (if any). From there, it’ll tell you how much your loan is likely to cost you based on the numbers you’ve included.
Repayment calculators can be very useful for borrowers who are entering the car loan application process, as it helps give a clearer idea of the true cost of your loan and what you might be able to afford. It can be easy to be swayed by a car loan advertising a certain rate and fees, but it’s always crucial to understand what these numbers mean in real terms before you jump into your finance deal.
Additionally, you can use this calculator as a comparison tool between different car loans on the market. Rather than simply comparing offers based solely on interest and fees, you can input all the key deals in our calculator and see a practical example of how much each will cost and what the potential savings between different offers may be.
For example, two lenders may offer $50,000, five-year car loans at 6% p.a. and 6.5% p.a., respectively. By using the calculator, you’d be able to see that you could save $700 by opting for the lower rate in this instance.
Are there any costs not included in the car loan repayment calculator?
Yes – the car loan repayment calculator can’t predict or include lender fees like monthly account charges and loan establishment costs. You can partially get around this by using the lender’s comparison rate instead of the advertised interest rate. This is super important if you're considering finance from a car dealership, without taking out a quote from a broker. A comparison rate bundles all of the regular and initial charges into a representative figure which is displayed next to your loan’s annual percentage rate. Remember, though, that a comparison rate doesn’t include conditional charges such as late or early repayment fees.
The car loan repayment calculator also can’t predict your interest rate, which is based on a range of factors. If you’re looking for an indicative interest rate, you can take out a free, no-obligation car loan quote with us and speak to one of our friendly consultants, who may be able to advise you on the rate you could be approved or pre-approved for.
On top of these factors, there’s a set of on-road costs which are important to account for. While they don’t appear in the calculator, it’s crucial to think about what you’d pay in terms of stamp duty on your vehicle purchase, as this could be worth hundreds of dollars (if not more) depending on the laws in your state and territory and the value of your vehicle. You’ll also need to budget for the following when buying your car:
- Comprehensive car insurance
- Vehicle registration
- Ongoing servicing and maintenance
- Ongoing petrol expenses
How much will my car loan cost?
As you can see in the calculator, there are several variables that can impact the cost of your car loan. Some of these include:
Interest rate and loan size
Interest is the most obvious aspect of a car loan that determines its cost. The higher your rate, the more you’ll pay. However, because interest is calculated based on your ongoing loan balance, the amount you borrow will also have a major impact on what you pay. The following table shows how both of these factors can impact the total amount of interest you pay:
| Loan size | 7.00% p.a. | 8.00% p.a. | 9.00% p.a. | 10.00% p.a. |
|---|---|---|---|---|
|
$30,000 |
$5,643 |
$6,498 |
$7,366 |
$8,245 |
|
$40,000 |
$7,523 |
$8,664 |
$9,821 |
$10,993 |
|
$50,000 |
$9,404 |
$10,830 |
$12,276 |
$13,742 |
|
$60,000 |
$11,285 |
$12,996 |
$14,731 |
$16,490 |
|
$70,000 |
$13,166 |
$15,161 |
$17,186 |
$19,238 |
Calculations based on a car loan repaid monthly over five years.
Length of loan term
Another factor you can see in Savvy’s repayment calculator that impacts the cost of your loan is the length of the term. As mentioned, interest is calculated based on ongoing loan balance, so the faster your balance falls (shorter loan terms), the less you’ll pay. This table shows how different loan terms can impact the cost of interest overall:
| Loan term | Repayments | Total interest | Total saving |
|---|---|---|---|
|
Seven years |
$461 |
$8,653 |
N/A |
|
Six years |
$519 |
$7,347 |
$1,306 |
|
Five years |
$602 |
$6,069 |
$2,585 |
|
Four years |
$726 |
$4,818 |
$3,835 |
|
Three years |
$934 |
$3,595 |
$5,058 |
|
Two years |
$1,350 |
$2,400 |
$6,253 |
|
One year |
$2,603 |
$1,233 |
$7,420 |
Calculations based on a $30,000 car loan repaid monthly with a 7.50% p.a. interest rate.
Deposit
Paying a deposit will also reduce the amount of interest you pay. You can see this when using the deposit function in our calculator, while the following table shows how this works for different deposit sizes:
| Deposit | Loan amount | Repayments | Total interest | Total saving |
|---|---|---|---|---|
|
$0 |
$30,000 |
$602 |
$6,069 |
N/A |
|
$1,500 |
$28,500 |
$572 |
$5,765 |
$304 |
|
$3,000 |
$27,000 |
$542 |
$5,462 |
$607 |
|
$6,000 |
$24,000 |
$481 |
$4,855 |
$1,214 |
Calculations based on a car loan repaid monthly over five years with a 7.50% p.a. interest rate.
Comparison rate
The comparison rate of your loan is the more accurate reflection of its cost, as it includes any applicable establishment and ongoing fees. You should always compare loans based on their comparison rate, with the following table demonstrating how lower interest doesn’t always mean a cheaper loan:
| Loan A | Loan B | |
|---|---|---|
|
Interest rate |
7.50% p.a. |
8.50% p.a. |
|
Fee % |
2.5% |
1% |
|
Comparison rate |
10.00% p.a. |
9.50% p.a. |
|
Total cost |
$38,245 |
$37,803 |
Calculations based on a $30,000 car loan repaid monthly over five years.
Additional repayments
One factor not covered in the calculator is additional repayments. Although many lenders will charge fees for you to pay out your loan ahead of schedule, this isn’t always the case. The following table shows how much you can save (and how much sooner you can clear your debt) when making additional payments:
| Loan term | Extra payment | Total payments | Total interest | Total saving | Total loan term |
|---|---|---|---|---|---|
|
Five years |
$0 |
$602 |
$6,069 |
N/A |
Five years |
|
Five years |
$100 |
$702 |
$5,019 |
$1,050 |
Four years, two months |
|
Five years |
$250 |
$852 |
$3,994 |
$2,075 |
Three years, four months |
Calculations based on a $30,000 car loan repaid monthly with a 7.50% p.a. interest rate.
Balloon payment
It’s also important to know how balloon payments can impact your loan’s cost. A balloon or residual payment is a lump sum to be paid at the conclusion of your loan term. Although they can reduce your monthly payments, they’ll also increase the amount of interest you pay overall. This is because your loan payments will gradually reduce to your residual value, rather than $0. The table below demonstrates this:
| Balloon payment | Repayments | Total interest | Total saving |
|---|---|---|---|
|
$6,000 |
$519 |
$7,105 |
N/A |
|
$3,000 |
$560 |
$6,587 |
$519 |
|
$1,500 |
$581 |
$6,328 |
$777 |
|
$0 |
$602 |
$6,069 |
$1,037 |
Calculations based on a $30,000 car loan repaid monthly over five years with a 7.50% p.a. interest rate.
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