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Comparison Rate Calculator
Use this calculator to compare the estimated cost of two home loans based on your actual loan amount, interest rate, fees, cash-back and loan term.
This helps show why the advertised comparison rate may not always reflect your real situation.
True Home Loan Cost Calculator
Compare two home loans using your actual loan amount, interest rate, upfront fees, ongoing fees, cashback and fixed-rate period — not just the advertised rate.
In Australia, advertised comparison rates are commonly based on a $150,000 loan over 25 years. This calculator helps show how the estimated cost may look using your own loan amount and loan term.
Loan A
Loan B
Estimated Results
Loan A
Loan A total loan cost
$0
Loan A total interest
$0
Loan A estimated comparison rate
0.00%
Loan B
Loan B total loan cost
$0
Loan B total interest
$0
Loan B estimated comparison rate
0.00%
Estimated cost difference
$0
Loan A total fees less cashback
$0
Loan B total fees less cashback
$0
Package fee impact
0.00%
Enter your loan details and calculate to compare the estimated total cost.
This calculator is a general estimate only. The estimated comparison rate shown is not a lender-issued comparison rate and should not be treated as a formal credit quote, loan approval estimate or financial advice. Actual loan costs depend on lender policy, product terms, repayment timing, fees, cashback eligibility and your personal circumstances.
Why your actual loan amount matters
In Australia, advertised comparison rates are generally based on a $150,000 loan over 25 years. That makes them useful for standardised comparison, but less useful if your loan is $500,000, $750,000 or higher.
A $395 annual fee has a much larger impact on a $150,000 loan than it does on a $750,000 loan. This calculator helps compare the estimated cost using your own figures.
If you are considering refinancing, you can also use our refinance savings calculator to compare repayments and long-term interest costs.
Comparison Rate Frequently Asked Questions
A comparison rate is designed to help borrowers compare home loans by combining the interest rate with some common loan fees and charges into a single percentage rate.
In Australia, lenders are generally required to calculate comparison rates using a standard example loan amount of $150,000 over 25 years.
The idea is to give borrowers a more realistic indication of the cost of a loan beyond just the advertised interest rate.
However, comparison rates have limitations because they are based on standard assumptions that may not match your actual loan amount, loan term or borrowing structure.
The interest rate only shows the cost of borrowing money.
The comparison rate attempts to include additional loan costs such as:
- annual package fees
- monthly account fees
- some upfront fees
- ongoing charges
This is why the comparison rate is often higher than the advertised interest rate.
For example:
- Interest rate: 6.00%
- Annual package fee: $395
Once fees are included, the comparison rate may increase to:
- Comparison rate: 6.18%
The larger the fees relative to the loan size, the bigger the difference between the interest rate and comparison rate.
Comparison rates in Australia are commonly calculated using a standard loan amount of $150,000 over 25 years.
But many borrowers today have loans much larger than this.
For example, a $395 annual package fee has a much bigger impact on:
- a $150,000 loan
than - a $750,000 loan
This is because the same fee is spread across a much larger loan balance.
As a result, the standard advertised comparison rate may not accurately reflect the true cost of a loan for your own situation.
That is why using your actual loan amount and loan term can provide a more useful comparison.
No.
This calculator provides an estimated comparison-style rate based on the information entered into the calculator.
It is designed to help compare the estimated cost of two loans using your actual loan amount, fees and loan term.
Official lender comparison rates are calculated using a prescribed formula under Australian consumer credit legislation and may include assumptions or fees that differ from this calculator.
This calculator is intended as an educational and comparison tool only and should not be treated as a formal credit quote or lending offer.
Not necessarily.
A lower comparison rate can be useful, but it should not be the only factor considered when choosing a home loan.
Some loans with slightly higher rates or fees may provide valuable features such as:
- multiple offset accounts
- better internet banking
- more flexible repayment options
- cashback offers
- fixed-rate flexibility
- lower refinancing costs
- better loan structure for future goals
The right loan depends on your financial situation, cash flow needs, future plans and how you intend to use the loan over time.
The cheapest advertised loan is not always the best long-term loan structure.
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Your Home Loan Consultant - Mortgage Broker Brisbane - ABN 78 596 155 035. James Sylvester is a Credit Representative No. 400033 of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237). Member of the Australian Financial Complaints Authority (AFCA member 48768).
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation, any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
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