Car & Personal Loan Repayments: how it works
Checked 15 Oct 2026. Uses the same approach as Moneysmart's personal loan calculator, so you can cross-check a result there.
Repayments use the standard amortisation formula, with interest charged at your repayment frequency (the same assumption as Moneysmart's personal loan calculator). Each repayment covers that period's interest and pays off some of the loan.
Fees: an upfront (establishment) fee can be added to the loan, so you pay interest on it, or paid at the start. A monthly account-keeping fee is added to every repayment. The true cost rate is the interest rate that would cost the same with no fees. It's worked out like a comparison rate, but on your own loan amount and term.
Balloon (residual) payments are common on car loans and novated leases. A balloon is a lump sum still owing after the last regular repayment. It lowers your repayments, but you pay interest on it for the whole term, so the loan costs more overall. Plan how you'll pay it: with cash, by refinancing, or by selling or trading in the car.
General information only, not financial, tax or credit advice. Check your situation with the ATO, your state revenue office or a licensed adviser.
Car & Personal Loan Repayments FAQs
What is a comparison rate?
It's the interest rate plus most upfront and ongoing fees, shown as one yearly rate. Lenders must show it next to an advertised rate. For personal and car loans it's worked out on a standard $30,000 loan over 5 years, so a loan of a different size or term can cost more or less than the comparison rate suggests. This calculator's true cost rate uses your own figures.
Is a balloon payment a good idea on a car loan?
It lowers your repayments, but you pay more interest because part of the loan is never paid down during the term. At the end you must pay the balloon in one go, refinance it, or sell the car. If the car is worth less than the balloon by then, you'll need to make up the difference.
Are weekly repayments cheaper than monthly?
Slightly. You pay down the loan sooner, so less interest builds up. The bigger savings come from a lower rate, lower fees, a shorter term or extra repayments.
Does this include early repayment fees?
No. It assumes a fixed rate and that you make every repayment on time with no extra repayments. Check your loan contract for early exit or break fees, especially on fixed-rate loans.
Should I add the establishment fee to the loan?
Adding it means you don't pay it upfront, but you pay interest on it for the whole term. Tick or untick the box to compare the total cost.