Australian Auto Finance Calculator
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Reviewed by Calculator Editorial Team
This Australian Auto Finance Calculator helps you estimate your car loan repayments, interest costs, and total finance amount. Simply enter your loan details and see how much you'll pay each month and in total over the loan term.
How to Use This Calculator
Using this calculator is simple:
- Enter the purchase price of the vehicle in Australian dollars (AUD).
- Input the down payment amount if you're making an initial payment.
- Select the loan term in years from the dropdown menu.
- Enter the annual interest rate as a percentage.
- Click the "Calculate" button to see your results.
The calculator will display your monthly repayment amount, total interest paid over the loan term, and the total amount financed.
Formula Used
The calculator uses the standard auto loan repayment formula:
Monthly Repayment Formula
M = P [i(1 + i)^n] / [(1 + i)^n - 1]
Where:
- M = Monthly payment
- P = Principal loan amount (Purchase price - Down payment)
- i = Monthly interest rate (Annual rate / 12 / 100)
- n = Number of payments (Loan term in years × 12)
Total interest paid is calculated by subtracting the principal from the total of all monthly payments.
Worked Example
Let's calculate a loan for a $40,000 vehicle with a $5,000 down payment, 5-year term, and 5% annual interest rate.
- Principal = $40,000 - $5,000 = $35,000
- Monthly interest rate = 5% / 12 = 0.4167%
- Number of payments = 5 × 12 = 60
- Monthly payment = $35,000 × [0.004167(1.004167)^60] / [(1.004167)^60 - 1] ≈ $702.45
- Total payments = $702.45 × 60 ≈ $42,147.60
- Total interest = $42,147.60 - $35,000 = $7,147.60
This example shows you'll pay approximately $702.45 per month for 60 months, with a total interest cost of $7,147.60.
Comparison Table
Here's a comparison of different loan terms for the same vehicle:
| Loan Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 3 years | $987.32 | $10,716.64 | $45,716.64 |
| 4 years | $812.15 | $8,538.20 | $43,538.20 |
| 5 years | $702.45 | $7,147.60 | $42,147.60 |
| 6 years | $623.12 | $6,193.44 | $41,193.44 |
| 7 years | $561.89 | $5,333.32 | $40,333.32 |
This table shows how longer loan terms reduce your monthly payments but increase the total interest paid. Shorter terms offer lower interest costs but higher monthly payments.
Frequently Asked Questions
What is the difference between APR and interest rate?
APR (Annual Percentage Rate) is the cost of credit expressed as a yearly rate, while the interest rate is the actual percentage charged on the loan balance. APR includes additional fees and costs, making it a more comprehensive measure of borrowing costs.
How does a down payment affect my loan?
A larger down payment reduces your loan amount, which typically lowers your monthly payments and total interest costs. However, it also means you pay more upfront out of pocket.
What happens if I can't make my payments?
If you miss payments, your lender may charge late fees, increase your interest rate, or take other actions to recover the money. This could damage your credit score and make it harder to get future credit.
Can I refinance my auto loan?
Yes, you can refinance your auto loan to get a lower interest rate or change the loan term. However, you'll typically need good credit and may have to pay fees to refinance.