Use this car loan calculator to quickly estimate your monthly car loan payments in Australia.
How to Use the Car Loan Calculator
This car loan calculator helps you estimate your monthly car loan payments based on the amount you want to borrow, the loan term, the annual interest rate, down payment, and trade-in value.
Instructions:
- Enter the loan amount in AUD.
- Enter the loan term in years.
- Enter the annual interest rate as a percentage.
- Enter the down payment amount in AUD (if any).
- Enter the trade-in value in AUD (if any).
- Click the “Calculate” button to see your estimated monthly payment.
How It Calculates:
The calculator uses the following formula to compute the monthly payment:
Monthly Payment = [Principal * Monthly Interest Rate * (1 + Monthly Interest Rate)^Number of Payments] / [(1 + Monthly Interest Rate)^Number of Payments – 1]
Where principal is the loan amount minus any down payment and trade-in value, the monthly interest rate is the annual interest rate divided by 12, and the number of payments is the loan term multiplied by 12.
Limitations:
- The calculator assumes a fixed annual interest rate over the entire loan term.
- It does not account for additional fees or insurance costs that may apply.
- The results are estimates and may vary based on the lender’s terms and conditions.
Use Cases for This Calculator
Calculating Monthly Loan Payments
Calculate your monthly car loan payments by entering the loan amount, term in years, and interest rate. Hit the calculate button to instantly see how much you’ll need to pay each month, making it easier to budget for your new vehicle.
Determining Total Interest Paid
Find out the total interest you’ll pay over the life of your car loan by inputting the loan amount, term, and interest rate. Understanding the total interest can help you make informed decisions and potentially save money by choosing a lower rate.
Comparing Loan Terms
Compare different loan terms such as 3 vs. 5 years by adjusting the term field and observing how the monthly payments and total interest change. This feature lets you see the impact of the loan term on your finances and choose the best option for you.
Adjusting Interest Rates
Experiment with different interest rates to see how they affect your monthly payments and total interest. By adjusting the interest rate slider, you can visualize how a lower or higher rate impacts the cost of your car loan.
Including Taxes and Fees
Add taxes and fees to the loan amount to understand the total cost of borrowing. By including these additional costs, you can get a more accurate estimate of the amount you’ll need to repay over the loan term.
Amortization Schedule
View the loan’s amortization schedule to see how much of each monthly payment goes towards the principal and interest. This breakdown helps you understand how your payments contribute to paying off the loan over time.
Early Payoff Calculation
Calculate how much you’ll save by making extra payments towards your loan principal each month. By inputting the additional monthly payment amount, you can see the time and interest saved by paying off the loan early.
Estimating Affordability
Estimate the maximum loan amount you can afford based on your monthly budget and desired loan term. By entering your monthly income and expenses, the calculator will help you determine a comfortable loan amount that fits your financial situation.
Refinancing Analysis
Explore the benefits of refinancing your existing car loan by entering your current loan details and comparing them with the new loan terms. The calculator will show you potential savings in monthly payments and total interest, helping you decide if refinancing is right for you.
Printing or Saving Results
Print or save the calculation results for future reference by using the built-in feature. This convenient option allows you to keep track of your car loan calculations and compare different scenarios easily.