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AussieCalc

Personal Loan Calculator

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

When to use

When you're comparing personal loan offers or planning a loan and want to understand the full repayment cost.

Who it's for

Anyone taking out a personal loan for debt consolidation, home renovations, a major purchase, or other purposes.

What you'll need

Loan amount, annual interest rate, loan term, and any extra monthly repayments you plan to make.

$

The amount you want to borrow.

%

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

years

Most Australian personal loans range between 1 and 7 years. Some lenders may offer terms up to 10 years.

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

$

Additional amount per month on top of your regular repayment. Shows how much interest and time you can save.

Optional. Tailors guidance to your borrowing situation.

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

Repayment timeline

Estimated payoff dates for a 5 years loan starting today

Today

July 2026

Month 0

Halfway

January 2029

Month 30

Debt-free

July 2031

Month 60

What if you borrowed $2,000 less?

Borrowing $13,000 instead of $15,000 saves:

Lower Monthly repayment

$41.50

Down from $311.30 to $269.80

Interest saved

$490

Total interest down to $3,188

Reduced total cost

$2,490

Total repaid down to $16,188

Loan balance over time

How your balance reduces — hover to inspect each year

Remaining balance
Line chart showing remaining loan balance over the loan term
PeriodRemaining balance
Start$15K
Yr 1$13K
Yr 2$10K
Yr 3$7K
Yr 4$4K
Yr 5$0
Yr 6$0

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
Line chart showing cumulative interest and principal repaid over time
PeriodCumulative interestPrincipal repaid
Start$0$0
Yr 1$1K$2K
Yr 2$2K$5K
Yr 3$3K$8K
Yr 4$4K$11K
Yr 5$4K$15K
Yr 6$4K$15K

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

Understanding personal loan costs in Australia

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 $165, but increases total interest paid from around $2,200 to around $3,700, an extra $1,500 in interest for the convenience of lower payments. Always compare the total cost of the loan, not just the monthly repayment, when choosing a term.

Variable vs fixed rate personal loans

Fixed rate personal loans lock in your rate and repayment for the entire term, which is 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 and gives a truer picture of the loan's cost.

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 per month cuts the loan to around 2 years 6 months and saves approximately $420 in interest. Extra repayments work by reducing your principal faster, which reduces the interest charged in every subsequent period.

Is a personal loan the right choice?

A personal loan suits one-off expenses where you need a fixed repayment schedule and a defined end date. But alternatives are worth comparing. Credit cards with a 0% purchase period can be cheaper for small amounts you can clear quickly. A mortgage offset account or redraw facility, if you own a home, provides access to funds at mortgage rates (typically 6–7% p.a.), well below personal loan rates (8–15% p.a.). For vehicle purchases, a secured car loan is often cheaper than an unsecured personal loan. For ongoing home improvements, a line of credit may be more flexible. Personal loans work best when you need a lump sum, want certainty about your repayment, and cannot access lower-cost alternatives.

Worked examples

Small personal loan: $5,000 at 9.99% p.a. over 2 years
A $5,000 unsecured personal loan at 9.99% p.a. over 2 years costs $230.70 per month and totals $5,537 over the life of the loan, which is $537 in interest. This is a typical scenario for a small purchase or short-term cash need. At this size and term, the interest cost is manageable, but extending to 3 years would lower the monthly repayment to around $161 while pushing total interest to $796.
Car loan: $25,000 at 7.99% p.a. over 5 years
A $25,000 secured car loan at 7.99% p.a. over 5 years costs $506.79 per month and totals $30,407, with $5,407 in interest. Secured loans (backed by the vehicle) typically attract lower rates than unsecured personal loans. Choosing a 3-year term instead reduces total interest to around $3,200 but lifts the monthly repayment to approximately $783.
Short vs long term: $15,000 at 8.99% over 3 years vs 5 years
At 8.99% p.a. on a $15,000 loan: a 3-year term costs $476.93 per month with $2,169 in total interest. A 5-year term costs $311.30 per month, a saving of $165.63 per month, but total interest rises to $3,678, an extra $1,509 over the life of the loan. Choosing the shorter term saves over $1,500 in interest at the cost of a higher monthly commitment. The extra $165 per month, if saved or invested, would compound further.
Extra repayments: $15,000 at 8.99%, 3 years, +$150 per month
The default scenario ($15,000 at 8.99% for 3 years) has a monthly repayment of $476.93. Adding $150 extra per month ($626.93 total) pays off the loan in 27 months (9 months early) and saves $577 in interest. Total paid with extras: $16,593 versus $17,169 without. The extra $150 per month eliminates 9 months of repayments and returns $577 in interest saved, a strong result for a modest additional commitment.

Common personal loan mistakes

  • Comparing loans by monthly repayment alone

    A lower monthly repayment almost always means paying more total interest. A $20,000 loan at 10% over 5 years costs $425 per month; over 7 years it costs $331 per month. The 7-year loan looks cheaper each month but costs around $1,700 more in total interest. Always compare total repayment amounts, not just the periodic payment.

  • Extending the loan term to make repayments feel manageable

    Stretching a loan term to reduce repayments is one of the most expensive borrowing decisions you can make. Every extra year adds interest compounding on the remaining principal. If you cannot afford the repayments on a 3-year loan, the solution is to borrow less, not to extend to 5 or 7 years.

  • Borrowing a round number for the buffer

    Borrowing $20,000 when you need $17,000 because it feels like a safer margin is common but costly. On a $3,000 difference at 9% over 4 years, the extra borrowing costs around $580 in additional interest, and the buffer often gets spent rather than saved. Borrow only what you need.

  • Ignoring fees when comparing loans

    A loan at 8.99% p.a. with a $595 establishment fee and a $10 monthly account fee may cost more over 3 years than a loan at 10.5% with no fees. The comparison rate factors in most recurring fees and gives a better like-for-like comparison than the headline rate alone. Always compare comparison rates alongside total repayment amounts.

  • Making extra repayments on a fixed rate loan without checking the terms

    Most fixed rate personal loans restrict extra repayments or charge a break fee for early exit. Making large lump-sum payments on a restricted fixed loan can trigger fees that offset or exceed the interest saved. Always read the extra repayment terms before committing to a fixed rate loan if you intend to pay it off early.

  • Using a long-term personal loan for short-term needs

    Personal loans are most efficient when the borrowing term matches the useful life of what you're buying. Taking a 7-year loan for a holiday or short-term expense means paying interest long after the benefit is gone. Short-term borrowing needs are often better met by a 0% purchase credit card (paid within the interest-free period) or a smaller 1–2 year loan.

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 rather than 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 average daily balance more frequently. On a typical personal loan, the saving from switching to fortnightly payments is modest, perhaps $25 to $50 on a $15,000 3-year loan. On a larger or longer loan the saving grows but remains small compared to the impact of paying more or choosing a shorter term. The main benefit of more frequent repayments is practical: smaller, more regular amounts can be easier to budget for.
What fees should I watch for with Australian personal loans?
Common fees include an establishment or application fee ($0 to $600), a monthly account-keeping fee ($5 to $15 per 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 to $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.
What is a comparison rate and why does it matter?
A comparison rate combines the interest rate with most mandatory fees, including the establishment fee and ongoing account-keeping fees, and expresses the combined cost as a single annual percentage rate. Under Australian law, lenders must display the comparison rate alongside the advertised rate. A loan advertised at 8.99% p.a. with a $595 establishment fee and a $10/month account-keeping fee may carry a comparison rate of 10.2%, making it more expensive than a loan at 9.5% with no fees. Always compare loans by their comparison rate for a like-for-like cost comparison.
Can I use a personal loan to consolidate debt in Australia?
Yes, and for high-interest debts like credit cards (typically 17–22% p.a.), consolidating into a personal loan at 8–12% p.a. can reduce total interest significantly and simplify repayments into one fixed monthly amount. The saving only materialises if you stop using the credit cards after consolidating, choose a term that lets you repay faster than the original debts, and account for any establishment fees on the new loan. A debt consolidation loan is a tool for reducing cost and complexity, it works only if the underlying spending behaviour changes. If you continue using the cards, you end up with both a loan and new card balances.

How this calculator works

Enter the loan amount, interest rate, and term. The calculator uses standard reducing-balance amortisation: each monthly repayment covers the interest on the current balance, with the remainder reducing the principal. As the balance falls, the interest portion of each repayment shrinks and more of each payment goes towards principal, which is why extra repayments made early in the loan have the biggest impact.

The calculator uses the nominal (headline) interest rate. The comparison rate, which blends the interest rate with most mandatory fees, gives a more accurate picture of the true cost and is what you should use to compare lenders. Always check the comparison rate on the product disclosure statement. The gap between headline and comparison rates can be significant, particularly on shorter-term or smaller loans where establishment fees represent a larger proportion of total cost.

Use the extra repayment input to see how much interest you can save and by how much you can shorten the loan. Most Australian personal loans allow early repayment without penalty, check the product terms. If yours does, even an additional $50 or $100 per month compounds meaningfully over a 3–5 year term.

Methodology

  • Assumptions: Fixed interest rate for the full loan term; equal monthly repayments; standard reducing-balance amortisation.
  • Calculation: Monthly repayment = P × r / (1 − (1 + r)^−n), where P = principal, r = monthly rate, n = months; total interest = (repayment × n) − P.
  • Limitations: Does not include establishment fees, ongoing fees, or early repayment charges; comparison rate is not calculated.

Sources

Last updated: July 2026

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