Loan Repayment Calculator for Car
Last updated: 11 December 2023. Calculator reflects the updates for the 2023-2024 financial year.
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Disclaimer: This car loan repayment calculator is provided for general information and illustrative purposes only. It provides estimates based on the information you input, and should not be relied upon as definitive advice or as a commitment to provide financing. Financing terms, interest rates, and repayments on actual vehicle loans may differ based on your personal credit profile and other factors evaluated by your lender. You should contact your lender directly if you wish to learn the exact terms, rates, fees, and other conditions that may be offered to you. Use of this calculator does not constitute any binding commitment or obligation between you and this website or its owners regarding any loan or other financial product.
We've made some assumptions in this calculator – please read them as they affect the figures produced. Those assumptions are:
- Interest rate entered is the annual percentage rate for the entire loan term
Interest rate remains fixed for the duration of the loan term
Loan term length options are limited to 24, 36, 48, 60, 72 or 84 months
Calculator does not account for taxes and fees which may need to be added to loan amount
Loan repayment begins one month after loan origination
Repayment calculations are based on equal instalments over the loan term
Repayments go directly towards principal and interest
No extra payments, late fees, penalties, or changes to interest rate are included
Loan is repaid in full by the end of chosen term length without ability to renew loan or change terms
Estimates are not binding and final loan terms depend on your lender
How to use this Car Loan Calculator
Using a loan repayment calculator for car is pretty straightforward. Here are the key steps:
- Input the sale price of the car you wish to purchase. This will be your principal loan amount.
- Enter any money you plan on putting as a down payment - this reduces the amount you'll have to finance.
- Enter the length of the loan term in months. Common terms are 24, 36, 48, 60 72 or 84 months. The longer the term, the lower the monthly repayment.
- Input the interest rate for your car loan. If you already have been approved and offered a loan, use the exact rate offered. If not, you can estimate a rate based on your credit health.
- Calculate! The calculator will use those 4 inputs to estimate your monthly payments over the set loan term. It will also show the total interest cost over the life of the loan.
To get an accurate idea of affordability, be sure to factor in auto insurance costs and also consider that repayment totals too - not just the monthly amount in isolation. Adjust any inputs like the loan term if needed to find an affordable option.
Using a calculator can help make sense of all the variables involved in financing a car purchase. It lets you model out different scenarios too so you can choose terms that fit your budget. Let me know if you have any other questions!
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Frequently asked questions
Top 5 Car Loan Repayments FAQs
What details do I need to use a car loan calculator?
You'll typically need the vehicle purchase price, any deposit you plan to pay, the loan term length (e.g. 5 years), and the interest rate offered to you by the lender.
Should I use the actual interest rate I've been quoted?
Yes, you want to use the exact interest rate from your lender so the repayments are accurate. Rates can vary widely between lenders.
How do I know if I can afford the repayments estimated?
Look at the monthly repayment amount calculated and make sure it fits within your current budget. A good rule is repayments taking up no more than 20% of your take-home pay.
What fees are not included in a standard car loan calculator?
Most don't include things like loan establishment fees or early repayment costs. Ask your lender to confirm all fees so you know the true total cost.
Can I use a calculator to estimate balloon repayments?
Yes - balloon loans, where you make lower payments and pay a final lump sum, can be estimated by adjusting the details you input like loan term and repayment amounts.
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