Comparison Rate Calculator

Calculate the true cost of a loan including fees per ASIC NCCP regulations. See nominal rate vs comparison rate.

Updated 2025-26 FYData stays on your deviceATO sourced data

Loan Amount

Nominal Rate (%)

Term (years)

Upfront Fees

Monthly Account Fee

Comparison Rate

6.05%

vs Nominal Rate 6.0%

Monthly Payment$2,997.75

Total Paid (incl. fees)$1,083,590.95

Total Interest + Fees$583,590.95

ASIC Standard Disclosure ($150,000 / 25 years)

Standard Comparison Rate6.17%

Standard Monthly Payment$966.45

Comparison rate is the true cost of the loan including credit fees and charges (per ASIC NCCP Reg 71). It excludes government charges (stamp duty, mortgage registration), enforcement fees, and contingent fees (redraw, late payment). The standard $150,000/25-year example is required disclosure but won't match your loan exactly.

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

What is a comparison rate?

The comparison rate is the true cost of a loan including most fees (application, ongoing, valuation, settlement). It's required by ASIC under the National Consumer Credit Protection Act so borrowers can compare loans accurately. The standard disclosure example is $150,000 over 25 years.

Why is the comparison rate higher than the nominal rate?

Because it includes fees. A 6.0% nominal rate with $800 upfront and $10/month fees might have a 6.18% comparison rate — that 0.18% reflects the real cost of the fees over the loan term. The bigger the fees relative to the loan, the larger the gap.

What fees are excluded from the comparison rate?

Government charges (stamp duty, mortgage registration), enforcement fees (legal action), redraw fees, late payment fees, exit/discharge fees, and fees that depend on borrower behaviour. Only standard, predictable credit fees are included in the calculation.

Should I pick the loan with the lowest comparison rate?

Not always. Comparison rate is calculated on the standard $150K/25yr example — it may not reflect your loan size. For a $500K mortgage, fixed dollar fees become proportionally smaller, so the actual cost gap narrows. Also consider features like offset accounts, redraw, and serviceability.

What is Comparison Rate?

The comparison rate is the true cost of a loan including fees, expressed as an annual percentage rate. It's required by ASIC under the National Consumer Credit Protection Act so borrowers can compare loans on equal footing — not just the headline 'nominal' interest rate.

How this calculator works

This calculator computes the comparison rate by solving for the discount rate that equates the loan principal to the present value of all repayments plus credit fees (upfront + ongoing). It uses Newton-Raphson/bisection numerical methods. The standard $150,000/25-year disclosure example is also calculated alongside your custom loan, since that's the figure required on most loan ads.

What Fees Are Included?

Comparison rate includes credit fees and charges that all borrowers pay regardless of behaviour: application fees, ongoing monthly account fees, valuation fees (where charged as a credit fee), settlement/legal fees. Excluded: government charges (stamp duty, mortgage registration), enforcement fees (legal action against the borrower), redraw fees, late payment fees, and other contingent fees that depend on borrower action.

Why the Standard Example Matters

The ASIC-mandated disclosure example is $150,000 over 25 years. This is what you see on loan advertising ("6.50% nominal, 6.62% comparison*"). It's a standardised yardstick — so compare apples to apples across lenders. But your actual loan might be much larger, in which case fixed-dollar fees become proportionally smaller and the gap between nominal and comparison narrows.

Limits of Comparison Rate

Comparison rate doesn't capture loan features (offset, redraw), discounts that depend on relationship banking, package fee structures (bundled multiple products), or break costs on fixed loans. A loan with a slightly higher comparison rate but better features can be cheaper overall for the right borrower.

Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).

Official Sources

ASIC — National Credit Code

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.

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