General
Car Affordability Calculator Australia 2026
Find out how much car you can really afford, including all running costs.
Your Budget
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Loan Details
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Running Costs
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How the Car Affordability Calculator Works
- 30% rule: Financial advisers recommend spending no more than 30% of your disposable income on car repayments.
- Reverse amortisation: We calculate the maximum loan amount from your affordable monthly repayment using Loan = PMT × [(1 − (1+r)-n) ÷ r].
- Max car price: Maximum loan + your deposit/trade-in value.
- Total cost of ownership: All repayments + deposit + insurance, rego, fuel, and maintenance over the loan term.
This calculator provides estimates only. Actual loan approval depends on your credit history and lender criteria. Running costs vary by vehicle type and location.
Frequently Asked Questions
How much should I spend on a car based on my salary?
A common guideline is the 20/4/10 rule: 20% deposit, finance over no more than 4 years, and total vehicle costs (repayments, insurance, fuel, rego) should not exceed 10% of your gross income.
What is the average car loan interest rate in Australia?
Secured car loan rates in Australia range from approximately 6% to 12% p.a. in 2026, depending on the lender, your credit score, and whether the car is new or used. Dealer finance is typically more expensive.
Should I buy a new or used car in Australia?
New cars depreciate 20-30% in the first year. A 2-3 year old used car offers the best value — someone else absorbs the steepest depreciation while the car still has warranty remaining.
What is the total cost of owning a car in Australia?
Beyond the purchase price, annual ownership costs include registration ($300-$900), insurance ($800-$2,500), fuel ($2,000-$4,000), servicing ($500-$1,500), and tyres ($200-$600). Budget $5,000-$10,000 per year total.
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Last updated: April 2026
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