Loan Comparison Calculator
Compare the repayment and total interest of two loan offers side by side.
- Loan B repayment
- $3,559
- Loan A total interest
- $722,933
- Loan B total interest
- $681,175
- Loan B saves in total interest
- $41,758
This calculator provides estimates only. It is general information, not financial or taxation advice, and doesn't account for your full personal circumstances. Confirm figures with your lender or a licensed adviser before making a decision.
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How this calculator works
When two lenders quote different rates, terms, or loan amounts, comparing the headline rate alone doesn't tell you the full story — the repayment amount and total interest paid over the life of the loan matter more. This calculator runs both loan offers through the same amortising-loan formula and puts the results side by side.
Enter the amount, rate and term for each loan (they don't need to match — you can compare a $600,000 loan over 30 years against a $580,000 loan over 25 years just as easily). Both use the same repayment frequency so the comparison is fair.
Worked example: a $600,000 loan at 6.2% p.a. over 30 years costs $3,674.81 a month with $722,932.99 in total interest. The same amount at 5.9% costs $3,558.82 a month — $115.99 less — and saves $41,758.14 in total interest over the loan. A rate difference that looks small on paper compounds into a meaningful amount over 30 years.
Remember that rate isn't everything: comparison rates (which fold in most fees), offset and redraw features, and how flexible the loan is with extra repayments can matter as much as the headline number for your actual cost of borrowing.
Frequently asked questions
- Should I compare the advertised rate or the comparison rate?
- The comparison rate is usually more representative since it folds in most standard fees, giving a more apples-to-apples view. This calculator uses whatever rate you enter, so plug in the comparison rate for a fairer comparison if you have it.
- Can I compare loans with different terms?
- Yes — enter each loan's own term. Just keep in mind a shorter term usually means a higher repayment but less total interest, so the 'cheaper' loan depends on whether you're optimising for lower monthly cost or lower lifetime cost.
- What about fees that aren't in the interest rate?
- Application fees, ongoing account fees, and discharge fees aren't included here. Add them manually to the total interest figures for a more complete comparison, or use each lender's comparison rate, which is designed to include most of them.