Truck Loan Calculator
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Loan Amount: $30,000
Establishment Fee: --
Total Interest Paid: --
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How to use the truck loan calculator
Our truck finance calculator provides a quick estimate of how much the regular repayments and total costs for your truck loan will be.
To use the truck loan calculator, you’ll need to enter some details about your loan:
- Truck purchase price - This is the value of the truck you wish to buy. Truck loans are secured by the vehicle you purchase and you can usually borrow 100% of the truck’s purchase price.
- Initial deposit / Trade-in amount - This is optional. Enter an amount here if you are contributing a deposit toward the cost of the truck, or the amount you are offered when trading in your current vehicle. The final truck loan amount is calculated by subtracting the deposit or trade-in amount from the purchase price.
- Interest rate - This is the fixed interest rate the lender will apply to your truck loan, and is used to calculate both the total amount of interest you will pay over the loan period and your scheduled repayment amount.
- Loan term - This is the length of your truck loan as dictated by your loan agreement. The loan term is important as it will allow you to accurately calculate your monthly, fortnightly, or weekly payment amount and the overall interest cost. The shorter your loan term, the higher your scheduled repayments will be. But you’ll pay less in interest overall.
- Establishment fees - Any upfront fees charged by the lender when creating the secured truck finance agreement. Establishment fees are included in the calculation for your repayments to provide a more accurate total loan cost.
Once you have filled in your truck loan details, simply click ‘See My Repayments’ to view an estimated repayment amount. You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.
How are my truck loan repayments calculated?
The truck loan calculator estimates your regular repayments using the same formula lenders use to calculate loans. This means you get an accurate estimate of what your regular repayments will be.
Here’s how it works:
- The regular repayments on your truck finance will depend on the loan amount, the interest rate and the loan term.
- Interest (which is generally tax deductible if the truck is used for business purposes) is added to your truck loan every month, meaning your regular repayments need to cover the loan amount (the principal) and the interest.
- At the start of the loan, more interest is added each month (because the loan amount is at its highest and interest is charged as a percentage of the loan amount).
- But as you pay down the loan, the interest charges decrease. This means over time more of your repayments are used to pay off the principal.
- The lender adjusts for this so that your repayment amount is always the same.
- Truck loans generally have a fixed term and interest rate, so it’s unlikely your regular repayment amount will change during the loan term (it will if you get a variable rate truck loan)
Example of monthly truck loan repayments
| Truck loan amount | 5% interest | 7.5% interest | 10% interest |
|---|---|---|---|
$10,000 | $188.71 | $200.38 | $212.47 |
$20,000 | $377.42 | $400.76 | $424.94 |
$30,000 | $566.14 | $601.14 | $637.41 |
$40,000 | $754.85 | $801.52 | $849.88 |
$50,000 | $943.56 | $1,001.90 | $1,062.35 |
$60,000 | $1,132.27 | $1,202.28 | $1,274.82 |
$70,000 | $1,320.99 | $1,402.66 | $1,487.29 |
$80,000 | $1,509.70 | $1,603.04 | $1,699.76 |
$90,000 | $1,698.41 | $1,803.42 | $1,912.23 |
How is truck loan interest calculated?
The interest charged to your truck loan is calculated taking these factors into account:
- Interest is applied to truck finance at an annual percentage rate (APR) of the loan balance (e.g. 8% p.a. or per annum)
- But because the loan balance is constantly decreasing as you pay it off gradually, the interest is calculated daily based on the balance that day
- Lenders then add interest to your loan monthly based on the total daily interest charges for the month
How is my truck finance interest rate calculated?
The interest rate on a truck loan will be calculated based on information you provide when you apply for the loan.
There are several factors involved, but it all boils down to how risky the loan is for the lender.
More risk equals a higher interest rate. Here are the main factors that determine the interest rate on a truck loan:
- The loan amount
- The loan term
- The age of the truck
- The size of the truck and its purpose
- How long your business has been operating
- Your and your business’s credit history (bad credit truck loans have higher interest rates)
- Your business’s financial position
- The type of truck finance you choose
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GET STARTEDGET STARTEDOther common questions about truck loans
Get help from a real-life Money Matchmaker® from start to finish.
Do I need a deposit to get truck finance?
Most lenders will lend 100% of the value of heavy vehicles and do not require a deposit. However, if you’re deemed to be a high-risk borrower or your business has been in operation for less than two years you may need to pay a deposit of 30% of the truck’s value.
What are the tax benefits of truck finance?
Buying a heavy vehicle with truck finance may have a number of tax benefits for your business. For example, you may be able to claim interest payments, depreciation and loan fees to reduce your business’s taxable income. It’s a good idea to speak to your accountant before applying for truck finance to make sure you’re maximising tax efficiencies.
Can I apply for truck finance if I’ve just started my business?
Yes, you can with certain lenders. However, you may be charged higher interest rates and you may need to provide contracts showing what work you have lined up. Other lenders only offer truck loans to more established businesses.
How long does it take to be approved for truck finance?
Some lenders offer approval for truck finance as little as 24 hours after you apply. But in most cases, it’ll take three to five business days.
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