Loan Comparison Calculator

A car loan or a personal loan? A personal loan or a mortgage redraw? What’s going to work out better for you, financially? Our loan comparison calculator can help you crunch the numbers.

Please Note: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied upon for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Consider whether you need financial advice from a qualified adviser.

A loan comparison calculator can help you do the sums to find out which loan will be the best for your budget in the long run. Our CANSTAR Loan Comparison Calculator can show you what interest you could pay over the life of different loans and what monthly repayments you could face at different interest rates.

You can even compare home loans that have different introductory rates. So you can compare side by side the honeymoon loans you’ve been looking at with our Home Loans Honeymoon Calculator and work out which will help your budget more.

How we made our calculations

The calculations we’ve made are based on inputting the following data into our calculator for Loan 1, and we have changed figures for Loan 2 to make comparisons of various factors:

  • Loan Amount: $400,000
  • Loan Term: 25 years
  • Upfront Fees: $500
  • Ongoing Interest Rate: 90% (average standard variable interest rate on our database at time of writing)
  • Ongoing Fees: $100 (maximum ongoing annual fee allowed by calculator)
  • Ongoing Fee Frequency: Annually
  • Introductory Honeymoon Rate: 50% (minimum 1-year fixed interest rate on our database at time of writing)
  • Introductory Honeymoon Period: 12 months (1 year)

According to CANSTAR’s comprehensive research database, the majority of Australians (60%) are looking for a loan amount of between $350,000 and $749,000 – so we’ve based our home loan calculations for this article on a loan of $400,000. You can enter the specific loan amount you are looking for in our home loan calculators and our comparison of home loans on the market.

What difference do upfront fees make?

As the table below shows, upfront fees may seem like a big deal when you’re signing up for a home loan, but they make only a small difference over the life of your loan.

Factor Loan 1 Loan 2 Difference
Upfront fee $500 $200 $300
Introductory repayment/month $2,011 $2,011 $0
Ongoing repayment/month $2,313 $2,313 $0
Total payable over life of loan $690,676 $690,676 $0
Amount saved over life of loan $300
Source: CANSTAR Loan Comparison Calculator.

What difference does the interest rate make?

As you can see from the table below, there is a big difference between how much you can save in interest between the minimum and maximum interest rates available in our database at the time of writing.

Loan Interest rates Total payable over life of loan Savings

Loan 1

Ave interest rate

3.50% 1-yr honeymoon with

4.90% revert

$604,717

$0

baseline

Loan 2

Min interest rate

3.50% 1-yr honeymoon with

3.85% revert

$547,126

$57,591

saving

Loan 3

Max interest rate

3.50% 1-yr honeymoon with

6.31% revert

$686,942

$82,225

worse off

Source: CANSTAR Loan Comparison Calculator.

What difference does the introductory rate make?

You can use our Honeymoon Rate Repayment Calculator to work out more easily how different levels of introductory interest rate will affect the interest you pay. It will calculate your monthly repayments and the interest you pay over the life of your loan.

But you can actually use the Loan Comparison Calculator to take that one step further and compare different introductory rates side by side, to find the rate that help your budget the most.

Any introductory rate will save you money against a loan with no honeymoon, and the lower the honeymoon rate, the more you’ll save. And a 2-year honeymoon will save you more money than a 1-year honeymoon.

Home loan calculators to help you work out your financial position

Use CANSTAR’s home loan calculators when you’re doing your sums about how much you can afford to borrow in a home loan: