How to use the Personal Loan Calculator
- 1 Enter the loan amount.
- 2 Enter the interest rate.
- 3 Choose the term.
- 4 Enter the establishment and monthly fees.
Worked example
A $20,000 loan at 11% over 5 years with a $250 establishment fee and $10 monthly fee. The repayment is about $444.85 a month. Interest and fees total about $6,941, so you repay about $26,941, and the effective rate with fees is about 12.55%.
Features
Fees included
Establishment and monthly fees in the true cost.
Effective rate
A rate including fees, to compare lenders.
Total cost
Total interest, fees and amount repaid.
When to use it
Car purchases
Compare a personal loan with a car loan.
Debt consolidation
Check if a new loan is cheaper than cards.
Renovations
Plan repayments for home improvements.
Comparing lenders
Use the effective rate to compare offers.
Frequently asked questions
What is a comparison rate?
A rate that includes most fees and charges, which lenders must show. It helps compare loans fairly.
Secured or unsecured?
Secured loans use an asset such as a car as security and usually have lower rates.
What credit score do I need?
Better scores get lower rates. Some lenders use risk-based pricing.
Can I repay early?
Variable loans usually allow early repayment without fees. Fixed loans may charge break fees.
Does the term matter?
Longer terms lower repayments but cost more interest.
Are fees negotiable?
Sometimes. Ask lenders, and compare with no-fee loans.
What about buy now pay later?
BNPL is now regulated as credit, but late fees can be costly.
How does applying affect my credit?
Each application records an enquiry. Compare with soft checks first.
Can I borrow to pay off cards?
Yes, but avoid running the cards back up.
What if I cannot repay?
Contact your lender for hardship help, or call the National Debt Helpline on 1800 007 007.
Is a personal loan better than a credit card?
Usually, for larger amounts, because rates are lower and the loan has a set end date.
How much can I borrow?
Lenders look at your income, expenses and debts, typically lending $2,000 to $50,000 unsecured.
Fixed or variable rate?
Fixed gives certain repayments. Variable may allow extra repayments without fees.
How fast is approval?
Many lenders approve within a day once documents are provided.
What is a green loan?
Some lenders offer lower rates for solar panels, batteries or electric vehicles, which can make a personal loan cheaper for these purchases.
Do personal loans have early exit fees?
Fixed-rate loans may charge break costs if you repay early, while many variable-rate loans let you repay at any time without a fee. Check the key fact sheet before signing.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated