Personal Loan Calculator

Using the Personal Loan Calculator

This personal loan calculator works out what a loan will really cost you before you apply. Enter the loan amount, interest rate and term, and choose weekly, fortnightly or monthly repayments. You'll see your personal loan repayments, the total interest, any fees, and an amortisation schedule that shows how each repayment splits between principal and interest. If the lender offers a discounted introductory rate, switch it on to see what your repayments will be once that rate ends.

How Personal Loan Repayments Are Calculated

Worked Example

Take a $20,000 personal loan at 11.5% p.a. over 5 years, repaid monthly, with a $250 establishment fee and a $10 monthly fee. The repayment is $439.85 a month ($449.85 with the account fee). Paid weekly, it would be $101.23 a week, and paid fortnightly, $202.62 a fortnight.

First repayment: interest is $20,000 × 11.5% ÷ 12 = $191.67, so $248.19 of the $439.85 repayment reduces the balance, to $19,751.81. Each month after that, slightly less of the repayment goes to interest and slightly more to principal.

Over the full term you'd pay $6,391.13 in interest (24.2% of everything you repay) and $850 in fees, for a total cost of $27,241.13. Because of the fees, the effective rate is 13.05% p.a., not the 11.5% headline rate.

Introductory Rate Loans: Watch the Repayment Jump

Some lenders advertise a low introductory ("honeymoon") rate for the first months of a loan. Your early repayments are set at that low rate, but once it ends the remaining balance is recalculated at the standard rate over the time left. For example, a $20,000 loan over 5 years with an introductory rate of 6.99% for 12 months, reverting to 14%, starts at $395.93 a month and rises to $451.91 a month from month 13. Total interest is $6,442.66, compared with $7,921.90 at 14% for the whole term ($465.37 a month). Budget for the higher repayment from the start, and compare loans on their comparison rate, not just the introductory rate.

Frequently Asked Questions

How does this personal loan calculator work?

Enter the amount you want to borrow, the interest rate, the loan term in years and months, and how often you'll repay. You can also add an establishment fee, a monthly account fee and an introductory rate. The calculator then estimates your repayment, total interest, total fees and total cost, and shows a full amortisation schedule.

How do you calculate principal and interest on a loan?

Each repayment is worked out with the amortisation formula: repayment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the rate per repayment period and n is the number of repayments. Every period, interest is charged on the balance still owing (balance × r), and whatever is left of the repayment reduces the principal. As the balance falls, the interest part of each repayment shrinks and the principal part grows.

How do I calculate personal loan repayments weekly, fortnightly or monthly?

Pick your repayment frequency and the calculator divides the annual rate by 52, 26 or 12 and spreads the loan over the matching number of repayments. The 'Repayment by frequency' panel shows all three side by side. Weekly and fortnightly repayments cost slightly less interest overall than monthly ones, because the balance is reduced a little sooner.

How does an introductory rate loan calculator work?

An introductory (or 'honeymoon') rate is a lower rate charged for the first few months of a loan. During that period your repayment is set as if the low rate applied for the whole term. When it ends, the remaining balance is recalculated at the standard rate over the time left, so your repayment goes up. This calculator shows both repayments so you can budget for the jump.

What's the difference between a personal loan's interest rate and its comparison rate?

The interest rate is what's charged on the balance. The comparison rate rolls in most standard fees and charges, so it shows the loan's true cost as a single annual percentage. In Australia, a lender that advertises a personal loan rate must also show a comparison rate, which is based on a benchmark $30,000 loan over 5 years, so it may not match your exact loan. This calculator's 'effective rate incl. fees' does the same kind of calculation for the amount and term you've entered, but it isn't the regulated comparison rate.

Is this a personal loan calculator for Australia, or a US one?

It's built for Australia. Many popular loan calculators online are US-based and use US conventions, such as monthly-only repayments, APR and US dollars. This calculator is built for Australian personal loans: it works in AUD, lets you choose weekly, fortnightly or monthly repayments, and includes establishment and monthly fees so you can compare it against a lender's comparison rate.

Does a secured or unsecured personal loan change my repayments?

The maths works the same way. Only the rate changes. A secured loan uses an asset, usually a car, as security, and that generally means a lower interest rate than an unsecured loan for the same borrower. Enter the rate you've been quoted for each option to see how much the difference saves you in repayments and total interest.

Do extra repayments or early payout fees matter on a personal loan?

Extra repayments go straight to principal, which cuts the total interest you pay and can shorten the loan. Variable-rate personal loans usually allow them for free. Fixed-rate loans may limit extra repayments or charge an early repayment or break fee if you pay the loan off early. This calculator assumes regular repayments only, so check your loan contract before you plan to pay it off early.

How much interest will I pay on a personal loan?

Total interest depends on the amount, the rate and especially the term. A longer term means a lower repayment but more interest overall. The calculator shows total interest, what share of everything you repay is interest, and a year-by-year breakdown, so you can try shorter or longer terms and see what each costs.