Loan Comparison Calculator
Compare two loan offers side by side on interest rate, fees and term to see which one has the lower total cost and repayment amount.
Your results
Calculation breakdown
- Repayment
- amortised payment at each loan's rate
- Total cost
- (repayment × total periods) + upfront fee
Worked example
For a $20,000 loan over 5 years, a 9.5% rate with a $250 fee can end up cheaper overall than an 8.9% rate with a $595 fee, depending on the exact numbers, showing why comparing total cost beats comparing rate alone.
Assumptions
- Assumes both loans use reducing-balance interest with monthly repayments.
- Ignores ongoing account fees; add these using the loan fee impact calculator.
- Both loans are assumed to run the full term with no extra repayments.
How this calculator works
This calculator takes two loan offers with their own principal, rate, term and upfront fee, calculates the periodic repayment for each using the standard reducing-balance formula, and compares the total cost including fees. It is a quick way to see past headline interest rates to the real cost of borrowing.
Frequently asked questions
Why compare total cost instead of just the interest rate?
A lower rate with a high upfront fee or longer term can cost more overall than a slightly higher rate with no fees and a shorter term, so total cost gives the fairer comparison.
What is a comparison rate?
In Australia, lenders must publish a comparison rate that includes most fees, giving a more realistic single figure to compare loans of the same amount and term; use it alongside this calculator.
Should I always choose the loan with the lowest total cost?
Usually, but also weigh flexibility, such as extra repayments or redraw facilities, which can save you money beyond what a fixed comparison shows.
Results are estimates only and are not financial, tax, legal or credit advice.