See how much extra repayments save on your car loan. Compare total interest and payoff time with and without additional payments. Free.
Interest savedPayoff time comparison
01 —INPUTS
The purchase price of the car before deposit.
Cash deposit or trade-in value.
Comparison rate may be higher — check with lender.
Typically 1–7 years for car loans.
Additional amount on top of your regular repayment.
Optional. Leave empty or 0 for no balloon.
02 —RESULTS
Enter your loan details and an extra repayment amount to see your savings.
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How extra repayments work
Most lenders in Australia allow extra repayments on car loans without penalty. Making extra payments — even small ones — reduces the principal faster, which means less interest accrues over the remaining term. This calculator shows exactly how much you save in interest and how many months or years you cut off the loan.
For the best result, run this calculator alongside the car loan repayment calculator to see your base repayment first, then experiment with different extra payment amounts here to find a comfortable top-up level.
FAQ
Are extra repayments allowed on car loans in Australia?
Yes, most Australian car lenders allow extra repayments without penalty. Many car loans are structured as fixed-rate personal loans with an option to make additional payments at no extra cost. However, you should always check your loan contract — some lenders may charge a fee for early repayment or cap the amount of extra payments you can make each year.
How much faster can I pay off my car loan with extra repayments?
Even a small extra repayment each month makes a significant difference over time. For example, adding an extra $100 per month to a $30,000 loan at 7.5% over 5 years can shave months off the loan term and save hundreds in interest. The higher your interest rate and the longer your term, the bigger the impact of each extra dollar.
Is a lump sum payment better than regular extra repayments?
A lump sum payment early in the loan term saves the most interest because it permanently reduces the principal balance that interest is calculated on. However, regular extra repayments are easier to budget and still deliver substantial savings. If you receive a tax refund or bonus, putting it toward your car loan as a lump sum is one of the most effective ways to reduce your total interest cost.