What is a comparison rate?

The comparison rate includes both the interest rate and most fees associated with the loan, expressed as a single percentage. It gives you a more accurate picture of the true cost. In Australia, lenders must display comparison rates alongside advertised rates.

Which fees should I consider when comparing loans?

Look at establishment/application fees (upfront), monthly account-keeping fees (ongoing), and early repayment fees. Some lenders offer 'no fee' loans but charge higher interest rates to compensate.

Loan Comparison Calculator

Calculator

Compare multiple personal loan offers side-by-side to find the best deal

Free to useNo data storedAI insightsUpdated: February 2026

Don't be fooled by headline rates! A loan with a lower interest rate might actually cost you more if it has high fees. Our comparison calculator shows you the true cost of each loan, helping you make the right choice.

Enter Your Details

Real-World Examples

Rate vs Fees Trade-off

Comparing $20,000 over 5 years: Loan A at 8.5% with $400 fees vs Loan B at 9.5% with $0 fees.

Inputs Used:

loanAmount:20,000loanTerm:5rate1:8.5fees1:400rate2:9.5fees2:0

Loan A total cost: $24,946. Loan B total cost: $25,012. Loan A is marginally cheaper ($66 saved), but only because it's a 5-year term. Over 3 years, the higher fees would make it more expensive.

Small Loan Comparison

Comparing $5,000 over 2 years: Loan A at 7.0% with $300 fees vs Loan B at 9.0% with $0 fees.

Inputs Used:

loanAmount:5,000loanTerm:2rate1:7fees1:300rate2:9fees2:0

Loan A total cost: $5,668. Loan B total cost: $5,472. Despite the lower rate, Loan A costs $196 more because the $300 fee is significant on a small loan.

Frequently Asked Questions

Glossary

Establishment Fee

A one-time upfront fee charged when you take out a loan. Also called application fee or setup fee. Can range from $0 to $500+.

Ongoing Fees

Monthly or annual fees charged throughout the loan term. Even small monthly fees add up - $10/month = $600 over 5 years.

True Cost

The total amount you pay over the life of the loan including principal, interest, and all fees.

Related Tools

Calculate Repayments

Get detailed repayment calculations for your chosen loan.

Consolidate Your Debts

See if combining debts will save you money.

Early Payout Savings

Calculate savings from paying off your loan early.

How to Use

1Enter the loan amount you need
2Select your preferred loan term
3Input the interest rate and fees for Loan 1
4Input the interest rate and fees for Loan 2
5See which loan is truly cheaper overall

Key Information

Always compare the comparison rate, not just the advertised rate
Upfront fees can make a huge difference on shorter loans
Ongoing monthly fees add up significantly over the loan term
Lower rate with high fees may cost more than higher rate with no fees

Pro Tips

On smaller loans, fees matter more - $500 fee on $5,000 loan is 10%, on $50,000 loan it's only 1%
Ask lenders to waive fees - many will for good credit or large loans
Compare 'total cost of loan' not just monthly repayments
Check if the lower rate requires direct debit - if you miss it, rates go up

Avoid These Mistakes

Only comparing advertised rates without considering fees
Ignoring monthly account fees - $10/month = $600 over 5 years
Not checking the comparison rate (it includes most fees)
Forgetting early exit fees if you plan to pay off early

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026