Loan Comparison Calculator
Compare two loans side by side to see the difference in repayments, total interest and total cost.
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
Should I choose the loan with the lowest interest rate?
When should I refinance my home loan?
What is Loan Comparison?
A loan comparison calculator lets you compare two loans side by side to see which offers better value, considering the interest rate, loan amount, term, and total cost over the life of the loan.
How this calculator works
Enter the details for Loan A and Loan B — amount, rate, and term for each. The calculator computes monthly repayments, total amount repaid, and total interest for both. The winner badge highlights which loan saves you more and by how much per month. The comparison table makes it easy to see the difference in total interest — even a 0.5% rate difference on a $500,000 loan can mean $50,000+ in savings over 30 years. Use this when comparing lender offers or evaluating whether refinancing is worth the switching costs.
Comparison Rate vs Nominal Rate
ASIC's NCCP regulations mandate that lenders display a 'comparison rate' alongside the headline nominal rate. Comparison rate includes most fees — so a 6.10% nominal / 6.45% comparison loan is actually more expensive than 6.20% nominal / 6.22% comparison. Always compare comparison rates, not nominal.
Refinancing Cost-Benefit
Switching loans has costs: discharge fee from old lender ($250-$650), application/settlement fees on new loan ($300-$1,200), valuation ($300-$500), legal/conveyancing ($100-$500). Total $700-$2,500. Refinancing pays off if: new rate 0.30%+ lower AND you'll stay 2+ years. Many lenders offer $2-5k cashback to win business — sometimes covers all costs.
Negotiating First
Before refinancing, ask your current lender for a 'retention discount'. Banks routinely give existing customers 0.20-0.50% off if they threaten to leave. Costs you nothing, saves $3-15k over remaining term. Then if you still find better elsewhere, refinance with a clear net benefit.
Features Beyond Rate
Full 100% offset: usually 0.10-0.20% rate premium, worth it if $20k+ sits in offset. Free redraw: standard. Unlimited extras on variable: standard. Fixed-rate extras: usually capped $10-20k/yr. Construction loan, package vs basic, mobile banking — assess based on YOUR actual usage.
Bank vs Non-Bank vs Broker
BIG 4 BANKS: full features, higher rates. NON-BANK LENDERS (Macquarie, AMP, Athena, Tic:Toc): competitive rates, online-first. CREDIT UNIONS: often great rates for members. MORTGAGE BROKERS: access 20+ lenders, paid by lender (no cost to borrower), compare across market in one application. ~60-70% of Australian home loans now use brokers.
Fixed vs Variable in Comparisons
Don't compare a no-frills fixed loan to a feature-rich variable loan — compare like-for-like. Split loans (60% fixed / 40% variable) hedge both. Always factor break costs: leaving a fixed loan early can cost $10k-$50k if rates have fallen since you fixed.
Official Sources
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.