Personal Loan Calculator

Calculate your repayments, total interest, and time saved with extra payments on any Australian personal loan.

Loan amount

The amount you want to borrow.

Annual interest rate

Australian personal loan rates typically range from 6% to 25% depending on your credit profile and lender.

Loan term

Longer terms lower your repayment but increase total interest paid.

Repayment frequency

How often you make repayments. More frequent payments reduce total interest slightly.

Extra repayments

Optional — extra amount per month above the minimum repayment.

Principal and interest repayments only. Fees and charges not included. General guidance only — not financial advice.

Loan balance over time

How your balance reduces — hover to inspect each year

Remaining balance

Balance reduces faster in later years as less of each repayment covers interest.

Interest vs principal breakdown

Cumulative interest paid vs principal repaid — hover to inspect each year

Cumulative interestPrincipal repaid

Interest is front-loaded — more of each early repayment goes to interest. Extra repayments reduce principal faster, cutting future interest charges.

Personal loans

How personal loan repayments are calculated

Your repayment is calculated using the standard amortisation formula: it divides your loan so that each payment covers the interest accrued in that period plus a portion of the principal. Early repayments are weighted more towards interest; later repayments pay off more principal. Your total interest cost depends on the loan amount, interest rate, and term — a longer term lowers repayments but increases total interest paid significantly.

The true cost of a longer term

Stretching a $15,000 loan from 3 years to 5 years at 9% drops your monthly repayment by about $130, but increases total interest paid from around $2,200 to $3,600 — an extra $1,400 in interest for the convenience of lower payments. Always compare the total cost, not just the monthly amount, when choosing a term.

Variable vs fixed rate personal loans

Fixed rate personal loans lock in your rate and repayment for the entire term — useful for budgeting. Variable rate loans may offer lower initial rates and often allow unlimited extra repayments, but your rate can change. Most Australian personal loans are fixed rate, with break fees applying if you pay out early. Always check the comparison rate (not just the headline rate), which includes most fees.

The power of extra repayments

Making even a small extra repayment each period can significantly shorten your loan and reduce total interest. On a $15,000 loan at 9% over 3 years, paying an extra $100/month cuts the loan to around 2 years 4 months and saves approximately $350 in interest. Extra repayments work by reducing your principal faster, which reduces the interest charged in every subsequent period.

Frequently asked questions

What is the average personal loan interest rate in Australia?: Personal loan rates in Australia typically range from around 6% to 25% p.a. depending on your credit score, income, the lender, and whether the loan is secured or unsecured. Banks and major lenders generally offer rates between 7% and 14% for borrowers with good credit. Online and non-bank lenders may be higher. Always compare the comparison rate — not just the headline rate — as it includes most fees.
What is the difference between a secured and unsecured personal loan?: A secured loan is backed by an asset (usually a vehicle). If you default, the lender can repossess the asset. Because this reduces their risk, secured loans usually have lower interest rates. Unsecured loans don't require collateral but carry higher rates and stricter eligibility criteria. Most personal loans in Australia are unsecured.
Can I make extra repayments on a personal loan?: It depends on the loan type. Most variable rate personal loans allow unlimited extra repayments. Fixed rate loans often restrict extra repayments or charge a fee (sometimes called a prepayment penalty or break cost) for paying out early. Always check your loan contract before making large lump-sum payments on a fixed rate loan.
How does repayment frequency affect total interest?: Paying weekly or fortnightly instead of monthly results in slightly less total interest because you are reducing your principal balance more frequently. Over a 3-year loan, the difference is usually small — a few hundred dollars at most — but it can add up on larger amounts or longer terms. The bigger benefit of more frequent payments is psychological: it can help you stay on track with a budget.
What fees should I watch for with Australian personal loans?: Common fees include an establishment or application fee ($0–$600), a monthly account-keeping fee ($5–$15/month), early repayment or break fees on fixed loans, and late payment fees. The comparison rate factors in most recurring fees but not all one-off charges. Always read the fee schedule before signing.
Does a personal loan affect my home loan borrowing capacity?: Yes. Lenders include your personal loan repayments as a committed expense when assessing your ability to service a mortgage. Even a $15,000 personal loan can reduce your home loan borrowing capacity by $60,000–$100,000 depending on your income, lender, and other commitments. Paying off personal loans before applying for a mortgage can significantly improve your borrowing power.