The Finance Algorithm
§ Tool · tier 1 · independent

Personal Loan vs Credit Card Calculator.

Compare borrowing costs between a personal loan and credit card to find the smarter option

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$5k

How much do you need to borrow?

%
20%

Your credit card's purchase rate (typically 15-22%)

%
10%

Expected personal loan rate (typically 7-15%)

$
$300

How much can you pay each month?

$
$0

Establishment and application fees (if any)

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Not sure whether to use your credit card or get a personal loan? This calculator compares the true cost of both options, showing you total interest paid, time to pay off, and which option saves you more money.

§ Worked examples

Real-world scenarios

Wedding Expenses - $8,000

Jake needs $8,000 for wedding costs and can pay $400/month.

Inputs

amount:8,000cardRate:20plRate:9payment:400

Personal loan saves $1,200 in interest and pays off 4 months faster.

Laptop Purchase - $2,000

Emma wants a new laptop and can pay it off in $300/month.

Inputs

amount:2,000cardRate:19plRate:12payment:300

For smaller amounts paid quickly, credit card is simpler with minimal interest difference.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Purchase Rate
The interest rate your credit card charges on new purchases. Usually higher than balance transfer rates.
Comparison Rate
Personal loan rate that includes fees, giving a truer cost of borrowing.
Minimum Payment Trap
Paying only minimum amounts on credit cards extends debt for years and costs thousands more.