Personal loan repayment calculator
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 on 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.
How much will my personal loan repayments be?
The cost of your personal loan repayments will depend on how much you borrow, the length of time you spend paying back your loan (loan term), the loan’s interest rate and fees, and how regularly you make your repayments (weekly, fortnightly, or monthly). Personal loans also come with either a fixed or variable interest rate. With a fixed-rate personal loan, the interest rate stays the same during the loan term, which means your repayments also stay roughly the same. A variable-rate loan’s interest rate can go up or down throughout the loan term. This means your repayments may change in size over time, making it harder to budget for. Though, variable-rate loans more often come with features like redraw facilities or options to pay down your loan faster.
Other factors, like your credit score and whether the loan is secured or unsecured, may also influence what interest rate you’re offered by a lender.
How much can I borrow with a personal loan?
You can usually borrow between $2,000 and $100,000 with a personal loan. A lender will take into account the following factors when determining how much you can borrow:
- Your annual income
- Your expenses, such as mortgage repayments or rent, groceries, and other bills
- If you have any existing debts, such as credit card debts or other loans
- Your credit score
- Whether you have any dependants
- Whether you’re applying by yourself or with another person
- Whether the loan is secured or unsecured.
Does the length of my loan term matter?
If you choose a longer loan term, your repayments will probably be lower, but you’ll likely pay more in interest over the life of the loan. You can use our personal loan calculator above to get an estimate of how much your repayments could be and how much interest you may pay with different loan terms.
Why do personal loans have interest rate ranges?
Lenders usually advertise a range of interest rates for a particular personal loan product. This represents the minimum and maximum rates that a borrower may be charged. The exact rate you’ll be offered will depend on your financial situation, including your credit history and score.
You can use the personal loans calculator above to get an estimate on how the interest rate can affect your regular repayments and the amount of interest you’ll pay over the life of a loan.
How is interest calculated on a personal loan?
While your interest rate is expressed as an annual figure, it’s actually calculated on a daily basis. Most lenders will divide your annual interest rate by 365 (the number of days in a standard year) and apply this ‘daily rate’ to your unpaid balance each day. Even though it accrues daily, interest is normally charged monthly. So, even if your interest rate remains the same the amount you’re charged may change from period to period depending on the number of days in the month, even if your interest rate remains the same.
How are personal loan fees calculated?
Personal loans can charge fees, including:
- Establishment fees: Charged when you take out the loan to help cover the administration work that goes into setting it up.
- Ongoing fees: Monthly or annual fees can add up over the life of the loan, particularly on a longer loan term.
- Late payment fees: If you don’t make your repayments on time, you may be charged a late payment or default fee.
- Early repayment fees: Some lenders may charge you for paying off your loan early or if you make additional repayments on the loan, as they’d miss out on interest payments you’ve already agreed to.
What’s the difference between a secured or unsecured personal loan?
A secured personal loan is a type of loan where you offer an asset, such as your car, home, or a cash deposit, as a ‘security’. While these loans may have lower interest rates, they can be risky. If you fail to keep up with your repayments the lender may be able to take the asset and sell it to recover your debt.
An unsecured loan doesn’t require you to put up a security, but will often come with higher interest rates as a result.
How do I compare personal loans?
When comparing personal loans, look at:
- The interest rate
- The comparison rate
A combination of interest and certain fees, the comparison rate can give you a better idea of the total cost of the loan each year. - Whether you want a fixed or variable interest rate
- The fees charged
- The loan type (secured or unsecured)
- The loan term
- Whether the loan can be used for your desired purpose
Some loan products are designed specifically for select purchases. For example, a green personal loan can usually only be used to buy environmentally friendly products, like electric vehicles or solar panels. - If you can make additional repayments and repay the loan early, and whether any fees apply for doing this.
Before applying for a personal loan, you may want to check your credit score. Lenders generally look at your credit score to help them decide whether to give you a loan and at what interest rate. You can check your credit score for free with Canstar or via the Canstar App.
Am I eligible for a personal loan?
To be eligible you’ll typically need to:
- Be at least 18 years or older
- Be an Australian citizen or permanent resident
- Be employed or have a steady source of income
- Have a suitable credit history
Some lenders may have additional requirements, such as a minimum income or credit score.
How to apply for a personal loan
Most personal loan providers allow you to apply online. To do so, you’ll need to provide:
- Photo ID like a driver’s licence or passport and supporting documents like your Medicare or bank card.
- Proof of income, like payslips or your annual tax return.
- Proof of savings, typically in the form of bank statements.
- Details of your employment for the past three years.
- A list of any assets you already own, including vehicles and property.
- A list of debts you already have, such as other loans, credit card debts, and outstanding buy now pay later balances.
- A list of your general living expenses, including groceries, rent, utilities, medical and transport costs, and education fees.
You may not need to provide all of this, but it’s a good idea to have it on hand just in case.
This page was reviewed by Finance Editor Brooke Cooper before it was published as part of Canstar’s fact-checking process.
Author: Nick Whiting
As a Finance Writer, Nick provides assistance to Canstar’s Editorial Team in its mission to empower consumers to take control of their finances. He has written hundreds of articles for Canstar across all key finance topics. Coming from a screenwriting background, Nick completed a Bachelor of Film, Television and New Media Production from Queensland University of Technology. Nick has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities. Nick’s role at Canstar allows him to combine his love of the written word with his interest in finance, having learned the art of share trading from his late grandfather. Nick strives to deliver clear and straightforward content that helps the everyday consumer navigating the world of finance. Nick is also working on a TV series in his spare time. You can connect with Nick on LinkedIn.