Personal Loan Repayment Calculator

How personal loan repayments are calculated

Your repayment depends on three things: how much you borrow, the interest rate and the loan term. Most Australian personal loans are principal and interest loans. Each repayment is the same, and covers that month's interest with the rest coming off the balance. Early on, more of each payment goes to interest. Towards the end, most of it reduces the debt.

Borrowing $20,000 at 11% over five years costs about $435 a month ($200 a fortnight or $100 a week), and about $6,090 in interest. Over three years it's $655 a month but only $3,570 in interest. Stretch it to seven years and the repayment falls to $342, but the interest climbs to about $8,770. The term table above shows this for your own figures.

Lenders usually add the establishment fee to the loan, so you pay interest on it too. This calculator does the same.

Comparison rate explained

Lenders must show a comparison rate whenever they advertise an interest rate. It rolls the interest rate and most upfront and ongoing fees into a single yearly figure, so a loan with a low rate but big fees can't look cheaper than it is. For personal loans, the comparison rate is worked out on a standard example: an unsecured loan of $30,000 over five years. That's why every ad carries a warning that the rate is true only for that example. Different amounts or terms, and fees such as early repayment costs, aren't captured. Borrowing a smaller amount makes fixed fees count for more, so the real cost can be higher. The "effective rate with fees" above does the same sum using your own amount, term and fees.

Fixed vs variable personal loans

Most personal loans have a fixed rate, so your repayment never changes and budgeting is easy. The catch is flexibility: some fixed loans limit extra repayments or charge an early repayment or exit fee if you pay off early. A variable rate can rise or fall, but usually lets you make extra repayments and pay out the loan without a penalty. Moneysmart suggests checking whether you could still afford a variable loan if rates rose by 2% or 3%.

Secured vs unsecured

An unsecured loan isn't backed by an asset, so rates are higher. A secured loan uses an asset, usually a car, as security and is often several percent cheaper. The trade-off: if you can't repay, the lender can repossess and sell the asset. If you're buying a car, compare with the car loan calculator.

Fees to watch

• Establishment or application fee: a one-off charge, often added to the loan.
• Monthly or annual account fee: small, but it adds up over the term.
• Early repayment or exit fee: mainly on fixed-rate loans.
• Late payment fees: plus possible default interest if you miss repayments.

Tips to get a lower rate

• Check your credit report first. It's free from the credit reporting bodies, and fixing errors can improve the rate you're offered.
• Limit applications. Each one is recorded on your file. Use quote tools that do a soft check where possible.
• Offer security if you're buying a car or have an asset to use.
• Borrow less, for less time. Every extra $1,000 at 11% over five years adds about $305 in interest.
• Compare comparison rates, not headline rates, and make sure the repayment fits your budget.

Debt consolidation: a word of caution

Rolling credit cards into one personal loan can save a lot of interest, but only if you stop using the cards. Many people end up with the loan and new card debt. Check the new loan is cheaper once fees are included, and that a longer term doesn't cancel out the lower rate. The credit card payoff calculator shows what your cards really cost, and Moneysmart has a guide to debt consolidation and refinancing.

If you're struggling with repayments

Contact your lender early. You have the right to ask for a hardship variation, such as lower repayments for a while or a longer term. Free, confidential help is available from a financial counsellor through the National Debt Helpline on 1800 007 007. Be wary of debt management firms that charge fees for things you can do yourself.

Quick answer for a common amount? See personal loan repayments by loan size.

Sources: Moneysmart – Personal loans (updated 1 October 2026); Reserve Bank of Australia – Statistical table F8, Personal lending rates (August 2026 data); ASIC – National Credit Code. The rate ranges by credit profile are our own rough guide based on the RBA average and published rate ranges in October 2026, not offers from any lender. Results are estimates only. Your lender's figures depend on its exact rate, fees and how it calculates interest.

Frequently asked questions

Official sources used for this calculator include: Moneysmart – Personal loans, Moneysmart – Credit cards, Moneysmart – Saving. See how we calculate.

Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.