Loan Comparison Calculator

Comparing Like-for-Like Loans

This loan comparison calculator identifies which entered offer has lower interest and fees over your chosen holding period. It uses the same borrowed amount for both loans and shows the debt still owing when that period ends.

Enter each offer's interest rate and remaining term, then choose its repayment frequency. A longer term can reduce regular repayments while leaving more debt at the comparison horizon. The cost comparison accounts for that remaining balance instead of treating every dollar repaid as a borrowing cost.

The calculation adds interest and fees over the chosen period. You can also reconcile it as cash paid plus remaining debt, less the original loan amount. This is an undiscounted comparison: it does not assign an investment return to cash kept outside the loan.

Repayments use the annual interest rate divided by 12, 26 or 52. Fortnightly and weekly amounts are calculated for those frequencies, rather than by dividing a monthly payment. Interest accrues on the declining balance. If the horizon falls between repayments, the tool includes accrued interest and prorated fees up to that point.

Fees, Extra Payments and Remaining Debt

Upfront fees increase the comparison cost without changing the borrowed amount. Monthly fees are spread across the selected repayment periods and stop when the loan clears. Convert an annual package fee to its monthly equivalent before entering it.

Extra repayments are added at each loan's selected frequency. They reduce the outstanding balance and later interest. If you enter a final balloon, regular repayments leave that percentage of the original amount due at maturity before extra repayments. The tool pays any residual balloon at maturity and includes it in cash paid, without counting repaid principal as interest or fees.

For the starting hypothetical $650,000 home loan comparison over five years, both loans run for 30 years with monthly repayments and no extras or balloon. Loan A has a 6.2% rate, a $395 upfront fee and $8 monthly fees. Loan B has a 6.05% rate, a $695 upfront fee and $10 monthly fees.

Loan B costs an estimated $4,466 less over five years under those assumptions. Its lower interest cost exceeds its higher fees. These rates are editable examples, not current offers.

Include a known exit or early-repayment charge in upfront fees when testing a specific holding period. This treats the charge as a cash cost without discounting its timing. Financed fees, offsets and changing rates need a separate scenario because this tool does not model them.

Home, Car and Personal Loan Comparisons

The purpose selector changes the input guidance while keeping the calculation consistent. It compares the offers you enter and does not search lender products.

For a home loan repayment comparison, use the same loan amount and expected holding period. Include package fees and any known fixed-rate break or discharge costs. Moneysmart's home loan comparison guidance explains the role of the loan's Key Facts Sheet alongside product features.

For a car loan comparison, enter the balloon as a percentage of the original loan and allow for establishment or broker fees. A smaller regular payment can leave a large final debt. Moneysmart's car loan guide explains how balloons affect repayments and total cost.

For a personal loan comparison, use the offered rate and include account fees or early-repayment charges. A lower advertised rate can still produce a higher cost once fees are counted. Moneysmart's personal loan guide also explains how the loan term affects repayments and interest.

Cost and Product Fit

The cheaper entered scenario may not suit the client's circumstances or required features. Compare its extra-repayment limits and security requirements, and allow for any offset or redraw features the client needs. A home loan comparison also needs the lender's income, deposit and property rules.

The result assumes each entered rate stays constant for the whole period. An introductory or fixed rate that later changes can reverse the cost difference. Use the comparison as a cost estimate alongside the offer's conditions and a separate eligibility assessment.