Personal Loan Repayment Calculator Australia
A $20,000 personal loan at 9.5% p.a. over 5 years costs $420.04 a month — and with typical fees on top, the true cost of the loan is $25,952, not $20,000.
Work out repayments on an Australian unsecured personal loan of 1–7 years: weekly, fortnightly or monthly repayments, total interest, establishment and monthly fees, the month you'll be debt-free, what extra repayments save, and how a secured loan compares. All rates are illustrative — enter the rate you're actually quoted. Estimates only — not financial advice.
All examples use the illustrative 9.5% p.a. default — not a quote or advertised rate. Estimates only — not financial advice.
📐 How it worksHow personal loan repayments are calculated — the exact maths
The amortisation formula every lender uses
Personal loans are amortising: each repayment covers that period's interest first, and the remainder reduces the balance, so the interest portion shrinks every period. The repayment is M = P[r(1+r)n] ÷ [(1+r)n − 1], where P is the amount borrowed, r the periodic rate (annual rate ÷ repayments per year) and n the number of repayments.
Worked through the calculator's default: $20,000 at 9.5% p.a. over 5 years, paid monthly. r = 9.5% ÷ 12, n = 60, so M = $420.04 a month. Across 60 repayments you pay $5,202 of interest and repay $25,202 — before fees. Add the illustrative $150 establishment fee and $10 monthly fee and the all-in figure is $25,952.
What a different rate does to the same loan
| Rate (p.a.) | Monthly repayment | Total interest |
|---|---|---|
| 7% | $396.02 | $3,761 |
| 8% | $405.53 | $4,332 |
| 9% | $415.17 | $4,910 |
| 9.5% (default) | $420.04 | $5,202 |
| 10% | $424.94 | $5,496 |
| 12% | $444.89 | $6,693 |
| 15% | $475.80 | $8,548 |
Note how flat the repayment column is compared with the interest column: between 7% and 15% the monthly repayment rises by only $80, but total interest more than doubles. That's why a rate you barely feel per month is worth negotiating hard for. The term matters even more — the same $20,000 at 9.5% costs $640.66 a month over 3 years but only $3,064 in interest, versus $326.88 a month over 7 years at $7,458 in interest.
💸 Rates & feesWhat drives your rate — and the fees that quietly add $750
Why your rate isn't the advertised rate
Australian personal loan pricing is risk-based. The headline advertised rate typically goes to borrowers with excellent credit scores and stable income; most applicants are quoted something higher. What moves your quote: your credit score and repayment history, whether the loan is secured, your income and existing debts, and the lender type — banks, credit unions and online lenders all price differently. Unsecured rates commonly land around 7–15% p.a., with sharper rates below that for excellent credit and materially higher rates for impaired credit. This page's 9.5% default is an illustration, not market data — always model your actual quote.
The fee stack
| Fee | Charged | Cost over 5 years |
|---|---|---|
| Establishment fee | Once, upfront | $150 |
| Monthly account fee ($10) | 60 times | $600 |
| Total fees | $750 |
With fees included, the cost of borrowing $20,000 rises from $5,202 to $5,952. Also check for early-exit or break fees (mostly on fixed-rate loans), late-payment fees, and fees for optional extras like repayment pauses. Many online lenders charge no monthly fee at all — a $10 monthly fee costs about as much as a full percentage point of extra interest rate on this loan, which is exactly what the comparison rate exists to expose.
🔒 SecuritySecured vs unsecured: what pledging an asset is worth
The trade
Most personal loans are unsecured — the lender relies only on your promise to repay, prices the risk into the rate, and can't repossess anything without going to court. A secured personal loan pledges an asset, usually a car or a term deposit. The lender's risk drops, so the rate usually does too — but the asset is on the line if you default.
| Unsecured 9.5% | Secured 7.5% | |
|---|---|---|
| Monthly repayment | $420.04 | $400.76 |
| Total interest | $5,202 | $4,046 |
| Interest saved by securing | $1,157 |
Two percentage points of security discount is worth about $1,157 on this loan (figures rounded to the nearest dollar). Set the calculator to Advanced and enter a real secured quote to price the trade for your own numbers. Buying a car? A dedicated car loan secured against the vehicle is usually the cheapest structure of all — and remember a lender can only take the pledged asset through proper default processes, but a default also scars your credit report for years either way.
⚖️ The legal oneThe comparison rate — what it includes, and what it honestly doesn't
Why every Australian loan ad shows two rates
Under Australia's consumer credit law, a lender advertising a personal loan rate must also display a comparison rate: a single percentage that folds together the interest rate plus most upfront and ongoing fees (like the establishment and monthly fees on this page). A loan advertised at 8% with heavy fees can carry a higher comparison rate than a 9% loan with none — the comparison rate is what makes that visible before you sign.
Its honest limitations
The comparison rate is calculated on a standardised example loan amount and term, not on your loan. If you're borrowing much less, or over a much shorter term, fixed-dollar fees weigh differently and the cheapest loan for the standard example may not be the cheapest for you. It also excludes event-based costs — early-exit and break fees, late-payment fees, and optional extras such as insurance add-ons. Use it as the ranking number between advertised loans, then model your actual amount, rate, term and fees in this calculator: the "Cost of credit" row is your personal all-in dollar answer, which no single percentage can give you.
Weighing several debts at once? The Debt Consolidation Calculator compares rolling them into one loan against paying them separately.
⚡ Pay it downExtra repayments: the biggest lever you control
What each extra $50 a month does
| Extra per month | Interest saved | Paid off earlier by |
|---|---|---|
| $0 | — | — |
| $50 | $718 | 7 months |
| $100 | $1,258 | 13 months |
| $200 | $2,017 | 22 months |
An extra $100 a month turns a 60-month loan into a 47-month loan and cuts interest from $5,202 to $3,944. Every month you remove also removes a monthly account fee — at $10 a month, the $100-extra scenario saves a further $130 in fees on top of the interest. Paying down debt at 9.5% is also a guaranteed, tax-free 9.5% return on every extra dollar — hard to beat anywhere else.
Frequency alone barely moves it
Switching the same loan to weekly repayments of $96.70 saves about $60 of interest over five years, and fortnightly about $42 — you're paying the same annual amount, just slightly earlier. That's unlike the mortgage half-payment trick. Extra dollars, not extra frequency, do the work. One caution: check whether your loan is variable (extra repayments usually unlimited, often with redraw) or fixed (may be capped, break fees possible) before committing.
❓ FAQFrequently asked questions
How are personal loan repayments calculated?
Lenders use the standard amortisation formula: M = P[r(1+r)n] ÷ [(1+r)n − 1], where P is the amount borrowed, r the periodic interest rate and n the number of repayments. For $20,000 at 9.5% p.a. over 5 years, r = 9.5% ÷ 12 and n = 60, giving a monthly repayment of $420.04. Over the term you pay $5,202 in interest, so you repay $25,202 before fees. This calculator runs exactly this maths.
What interest rate is typical for an Australian personal loan?
There is no single rate. Unsecured personal loan rates in Australia commonly sit around 7% to 15% p.a. depending on your credit score, income, whether the loan is secured, and the lender — the best advertised rates go to strong credit profiles, and rates well above that range exist for riskier borrowers. The 9.5% default here is illustrative only, not a quote: enter the rate you're actually offered, and compare loans on the comparison rate.
What is the difference between a secured and unsecured personal loan?
A secured loan is backed by an asset — usually a car or a term deposit — that the lender can repossess if you default, so it usually carries a lower rate. An unsecured loan has no collateral, which means more risk for the lender and a higher rate for you. On this page's default loan, securing $20,000 over 5 years at an illustrative 7.5% instead of 9.5% cuts the repayment from $420.04 to $400.76 a month and saves $1,157 in interest. Use the Advanced level to compare both side by side.
What fees should I watch for on a personal loan?
Three main ones: an establishment (application) fee charged upfront; a monthly or annual account-keeping fee; and early-exit or break fees, most often on fixed-rate loans. Late-payment fees can also apply. Fees matter: at this page's illustrative defaults of $150 upfront plus $10 a month, fees add $750 to a 5-year loan — which is why the legally required comparison rate, not the headline rate, is the number to compare loans on.
Do extra repayments really save much?
Yes. On the default $20,000 loan at 9.5% over 5 years, an extra $100 a month pays the loan off 13 months early and cuts interest from $5,202 to $3,944 — a saving of $1,258. An extra $200 a month saves $2,017 and 22 months. Every month removed from the loan also removes a monthly account fee. Check your contract first: variable-rate personal loans generally allow unlimited extra repayments, while fixed-rate loans may cap them or charge break fees.
What is a comparison rate?
An Australian legal requirement: whenever a lender advertises a personal loan interest rate, it must also show a comparison rate that folds the interest rate plus most upfront and ongoing fees into a single percentage. It's calculated on a standardised example loan, so it's the best like-for-like number for ranking loans — but it excludes some costs (such as early-exit and late-payment fees and optional extras), and if your amount or term differs a lot from the standard example, your actual cost ranking can differ too.
Personal loan, credit card or car loan — which is cheaper?
For a fixed amount repaid over years, a personal loan usually beats a credit card: personal loan rates sit well below typical card purchase rates, and the fixed term forces the debt to zero. Repaying $10,000 over 5 years at an illustrative 20% p.a. — credit-card territory — costs $5,896 in interest versus $2,601 at 9.5%, a difference of $3,295. For a car purchase, a loan secured against the vehicle usually prices below an unsecured personal loan. Cards win only for short-lived debt cleared within the interest-free period.
Does applying for a personal loan affect my credit score?
Each formal application is recorded on your credit report as an enquiry, and several applications in a short window can lower your score and make lenders cautious. Many Australian lenders offer a pre-qualification or rate-estimate check that uses a soft enquiry and doesn't affect your score — use those to shop around, then make one formal application. Under comprehensive credit reporting, repaying on time helps your score; missed payments and defaults hurt it.
Will paying weekly or fortnightly instead of monthly save interest?
A little, not a lot. On the default loan, weekly repayments of $96.70 produce $5,143 of total interest versus $5,202 paying monthly — about $60 saved over 5 years, because you repay the same annual amount only slightly earlier. This is different from the mortgage trick where paying half a monthly amount 26 times a year sneaks in an extra month of repayments. On a personal loan, the real lever is extra repayments.