Personal Loan Calculator

Calculate your monthly personal loan repayment, total interest, and amortisation schedule, including establishment fees.

Rates as of Q2 2025 (example)

A$
%
0.1 36
months
6 84
%
0 10
A$
Result
Total interest
Total cost of loan

Payment breakdown

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Amortization schedule

Period Date Payment Principal Interest Balance

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For educational purposes only. Consult a financial advisor.

What is a Personal Loan Calculator?

This calculator estimates your monthly repayment, total interest, and full amortisation schedule for a personal loan, including the upfront establishment fee charged by many Australian personal loan lenders. It shows the net amount you actually receive after the fee is deducted, and calculates the true cost of the loan — combining interest and fees — to help you compare offers.

How to Use This Personal Loan Calculator

  1. Enter the loan amount — the amount you are borrowing.
  2. Enter the interest rate (example rate — enter the rate quoted by your lender).
  3. Enter the loan term in months (personal loans in Australia commonly range from 1 to 7 years, or 12 to 84 months).
  4. Enter the establishment fee as a percentage of the loan amount (many lenders charge 1-5% upfront).
  5. Optionally enter an extra monthly payment to see how it reduces total interest and shortens the term.
  6. Review your monthly repayment, net loan proceeds after the establishment fee, total interest, and full amortisation schedule.

How is a Personal Loan Calculated?

This calculator uses the standard amortisation formula on the full loan amount (the amount borrowed before deducting the fee), which is how personal loan repayments are typically structured — your repayments are based on the full amount borrowed, but you only receive the net amount after the fee is deducted upfront.

Formula: Monthly Repayment = [Loan Amount × Monthly Rate] ÷ [1 − (1 + Monthly Rate)−Months], where Monthly Rate = Annual Rate ÷ 12. Establishment Fee = Loan Amount × Fee %. Net Proceeds = Loan Amount − Establishment Fee. Total Interest = (Monthly Repayment × Months) − Loan Amount.

Example: A A$15,000 personal loan at 11% interest (example rate — enter your actual rate) over 36 months with a 3% establishment fee: Establishment fee = A$450, net proceeds = A$14,550. Monthly repayment ≈ A$491.08. Total interest ≈ A$2,678.91. Total cost (interest + fee) = A$3,128.91. (Note: this example is for illustration purposes only.)

Personal Loans in Australia

Personal loans in Australia are typically unsecured (not backed by an asset) and carry higher interest rates than secured loans such as home loans or car loans, reflecting the lender's higher risk. Rates vary widely — bank personal loan rates generally range from around 7-15%, while some non-bank and online lenders charge higher rates, and short-term or "payday" loan products can carry effective annual rates that are very high. All personal loan lenders in Australia who lend to consumers are required to hold an Australian Credit Licence and comply with the National Consumer Credit Protection Act, which includes requirements to lend responsibly and to disclose a comparison rate that incorporates the interest rate and most fees into a single annual percentage. When comparing personal loans, always look at the comparison rate rather than the headline interest rate — a loan with a lower interest rate but a high establishment fee can have a higher comparison rate (and total cost) than a loan with a slightly higher interest rate and no fee. Personal loans in Australia can be fixed rate (locked in for the term) or variable rate (can change over the term); most personal loans are fixed rate, which is what this calculator models. Some lenders offer redraw facilities or allow extra repayments at no cost, while others charge early repayment fees — check your loan's terms before making extra payments.

Tips for Using This Personal Loan Calculator

  • Always compare the comparison rate (not just the interest rate) across lenders — this calculator shows the interest cost, but the comparison rate is the most accurate single figure for comparing total loan cost between different products.
  • Increasing your monthly payment even by A$50-100 can meaningfully reduce total interest and shorten the loan term — use the extra monthly payment field to model this.
  • Check whether your loan has an early repayment fee before making extra payments — some fixed-rate personal loans charge a fee for repaying early, which could offset the interest saved.
  • If you are consolidating multiple debts into a personal loan, make sure the total interest and fees on the personal loan are less than what you would pay across your current debts — use our Debt Consolidation Calculator for this comparison.

Frequently Asked Questions

What is an establishment fee and does every lender charge one?

An establishment fee (sometimes called an application fee or origination fee) is a one-time upfront charge by the lender to process and set up your personal loan, typically deducted from your loan proceeds before you receive the funds. Not all lenders charge an establishment fee — many online and non-bank lenders have moved to "no fee" or lower-fee models as a competitive differentiator. When comparing loans, make sure to factor the establishment fee into your comparison, as it increases the true cost of borrowing above the interest rate alone. The comparison rate accounts for this.

What is the difference between a fixed-rate and variable-rate personal loan?

A fixed-rate personal loan has an interest rate that is locked in for the full term — your repayments are predictable and unchanged by market rate movements. This calculator models a fixed-rate loan. A variable-rate personal loan can change if the lender adjusts rates (typically in response to RBA cash rate changes), which means your repayments could rise or fall. Fixed-rate personal loans are much more common in Australia and are suitable for borrowers who want repayment certainty.

What does the comparison rate tell me?

The comparison rate is a standardised annual percentage rate that Australian lenders must disclose, incorporating the interest rate and most ongoing fees and charges (including establishment fees) into a single figure. It allows you to compare the true cost of personal loans from different lenders on a like-for-like basis, even when fee structures differ. When comparison shopping, always check the comparison rate — a loan with a lower interest rate but a high establishment fee may have a higher comparison rate than a no-fee loan at a slightly higher interest rate.

Can I pay off a personal loan early?

Yes, but check whether your loan has an early repayment fee. Under the National Consumer Credit Protection Act, lenders can charge an early repayment fee (also called a break cost or prepayment penalty) on fixed-rate personal loans. This fee compensates the lender for the interest they expected to earn. Variable-rate personal loans generally cannot have early repayment fees under NCCP Act provisions. If your loan has no early repayment fee, making extra repayments is a cost-effective way to reduce total interest and pay off the loan sooner.

Should I use a personal loan or a credit card for a large purchase?

For a large purchase you plan to pay off over 1-7 years, a personal loan at a fixed rate is usually cheaper than a credit card, because personal loan interest rates are generally lower than credit card rates (which are often 15-25%+ p.a.). A credit card may be better if you can pay off the balance within the interest-free period, but for any balance you plan to carry beyond the statement cycle, a personal loan is typically more cost-effective. Use our Credit Card Payoff Calculator and this personal loan calculator to compare the total cost for your specific amount and timeframe.

How does this personal loan calculator differ from the general Loan Calculator?

The main difference is the establishment fee field — personal loans in Australia commonly charge an upfront fee deducted from the loan proceeds, which this calculator models explicitly. The general Loan Calculator uses the same amortisation formula but does not include an establishment fee input. The personal loan calculator is tailored to the typical structure of unsecured personal loans in Australia, while the general Loan Calculator is suitable for any fixed-rate loan where no upfront fee applies.

Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate and establishment fee used are examples only and do not represent rates or fees currently offered by any specific lender — actual rates, fees, comparison rates, and lending criteria vary by lender, loan type, and individual creditworthiness, and change frequently. Always compare the comparison rate across lenders and check the product disclosure statement before committing to a loan. Consult a qualified financial adviser for advice specific to your circumstances.