What affects my personal loan interest rate?

Your interest rate depends on your credit score, income stability, employment type, existing debts, and loan amount. Those with excellent credit (750+) typically get the best rates. Some lenders also offer better rates for secured loans.

Should I choose a shorter or longer loan term?

Shorter terms mean higher monthly repayments but less total interest paid. A $20,000 loan at 10% over 3 years costs about $2,600 in interest, but over 7 years it costs about $6,500. Choose based on what you can comfortably afford.

Can I pay off my personal loan early?

Most lenders allow early repayments, but some charge early exit fees (especially for fixed-rate loans). Check your loan contract for details. Variable rate personal loans typically allow unlimited extra repayments.

Personal Loan Calculator

Calculator

Calculate your personal loan repayments with AI insights on rates and lender options

Free to useNo data storedAI insightsUpdated: February 2026

Use our free personal loan calculator to see exactly how much your loan will cost. Personal loans are typically unsecured and have higher rates than home loans, but offer flexibility for various purposes - from debt consolidation to home improvements.

Enter Your Details

Real-World Examples

Car Purchase Loan

Sam wants to buy a $25,000 used car with personal loan at 9.5% over 5 years.

Inputs Used:

loanAmount:25,000interestRate:9.5loanTerm:5repaymentFrequency:Monthly

Monthly repayment: $524. Total interest: $6,440. Consider a 4-year term at $592/month to save $1,200 in interest.

Home Renovation

Emma needs $15,000 for a kitchen reno, offered 11% over 3 years.

Inputs Used:

loanAmount:15,000interestRate:11loanTerm:3repaymentFrequency:Monthly

Monthly repayment: $491. Total interest: $2,676. Tip: Check if your home loan has redraw - you might borrow against your mortgage at 6% instead.

Frequently Asked Questions

Glossary

Comparison Rate

A rate that combines interest rate and most fees into a single percentage, showing the true cost of a loan.

Secured Loan

A loan backed by an asset (like a car). If you default, the lender can take the asset. Typically has lower rates.

Unsecured Loan

A loan without collateral. Higher risk for lender means higher rates, but no asset is at risk if you can't pay.

Related Tools

Compare Loan Offers

See which loan is truly cheaper when comparing multiple offers.

Pay Off Loan Early

Calculate how much you'll save by making extra repayments.

Consolidate Your Debts

See if combining debts into one loan will save you money.

How to Use

1Enter the loan amount you need to borrow
2Input the interest rate (or use a typical rate of 9-12%)
3Select your preferred loan term (1-7 years is typical)
4Choose your repayment frequency
5Get your calculated repayments and AI insights

Key Information

Personal loan rates in Australia typically range from 7% to 15%
Secured personal loans (against an asset) often have lower rates
Shorter loan terms mean higher repayments but less total interest
Compare the comparison rate, not just the advertised rate

Pro Tips

Check if your bank offers loyalty discounts - existing customers often get 0.5-1% better rates
Choose fortnightly repayments over monthly - you'll make an extra month's worth of payments per year
Get pre-approval before shopping - it won't affect your credit score with most lenders
Consider secured loans if you have an asset - rates can be 2-3% lower

Avoid These Mistakes

Borrowing more than you need - it's tempting but costs more in interest
Choosing the longest term for lowest payments - you'll pay significantly more interest
Not reading the fine print on fees - establishment fees, ongoing fees, and early exit fees add up
Applying with multiple lenders at once - each application affects your credit score

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