If you need money to pay for a new car, home renovations, a wedding or some other big purchase, you may be considering a personal loan. But it’s important to understand how much the loan could cost you. That’s where Canstar’s personal loan calculator can help.

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.

Looking for a low rate personal loan?

The table below displays some of our referral partners’ unsecured personal loan products for a three-year loan of $20,000 in NSW. The products are sorted by Star Rating (highest to lowest) followed by comparison rate (lowest to highest). Use Canstar’s Personal Loans comparison selector to view a wider range of products on Canstar’s database. Canstar may earn a fee for referrals. Read the Comparison Rate Warning.

How much will my personal loan repayments be?

The total amount of your personal loan repayments will depend on factors like the loan amount, interest rate (including whether it is fixed or variable), loan term, fees and how regularly you make your repayments. Other factors like your credit score and whether the loan is secured or unsecured may also influence what interest rate a lender is willing to offer you.

Personal loans can have a fixed or variable interest rate. With a fixed-rate personal loan, the interest rate stays the same during the loan term. This means your repayments would also stay the same. In comparison, with a variable personal loan, the interest rate can go up or down at the lender’s discretion. This means your repayments may vary over time.

How much can I borrow with a personal loan?

The amount you can borrow from a lender, also known as your borrowing power, is based on your personal financial circumstances. For example, when considering your application for a personal loan, a lender will generally consider factors like:

  • your income
  • your expenses, such as mortgage repayments or rent and other living expenses
  • your existing debts, such as any credit cards or other loans
  • your credit score
  • whether you have any dependants
  • whether you are making a single or joint application.

Does the length of my loan term matter?

If you choose a longer loan term, this generally means you will have lower repayments each week, fortnight or month. However, it also means you’re likely to pay more interest over the life of the loan. You can use Canstar’s calculator to get an estimate of how much your repayments could be and how much interest you may pay over different lengths of time.

Why do personal loans have interest rate ranges?

Personal loan providers usually have interest rate ranges. These represent the minimum and maximum interest rates that a lender may charge. The exact rate you will get will depend on your personal circumstances, including your credit history.

How is interest calculated on a personal loan?

Interest is typically calculated daily on the unpaid balance on your personal loan. The provider will usually divide your annual interest rate by 365 (the number of days in the year) and then apply this to your unpaid daily balance. Interest is usually charged monthly, so even if your interest rate remains the same the amount you are charged may differ each month depending on the number of days in the month.

How are personal loan fees calculated?

Personal loans can come with a few different fees. This may include:

  • Establishment fee: Some providers charge an establishment fee to set up a personal loan. It will be charged when you take out a personal loan.
  • Monthly fees: Some providers charge an ongoing monthly fee or service fee. This can add up over the life of the loan, particularly if you have a longer loan term.
  • Late payment fees: If you don’t make your repayments on time, you may be charged a late payment fee or default fee.
  • Early repayment fees: Some providers also charge a fee if you pay off your loan early or if you make additional repayments on the loan.

What is the difference between a secured or unsecured personal loan?

A secured loan is one where you offer up an asset, such as a car or other possession, as ‘security’ for the loan. This can be risky because if you fail to keep up with your repayments, the lender may be able to take possession of that asset and sell it to recover the debt.

An unsecured loan doesn’t require you to put up anything as security, but as the financial watchdog ASIC explains on its Moneysmart website, the interest rate will often be higher and the lender can still potentially take you to court if you don’t pay back the loan.

How do I compare personal loans?

When comparing personal loans, some key factors to look at include:

  • the interest rate and the comparison rate
  • 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
  • whether 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. Your credit score can also impact the interest rate that you are offered. You can check your credit score through a number of online providers, including Canstar.

→ You can check your credit score for free

This page was reviewed by Deputy Editor Sean Callery and Sub Editor Tom Letts before it was published as part of Canstar’s fact-checking process.

Author: Tamika Seeto

Tamika covers personal finance for Canstar, specialising in banking and general insurance. She joined the team after completing a Bachelor of Journalism and Bachelor of Laws (Honours) at QUT. She has previously written for a range of news, music and arts publications.


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