Start with matching inputs
Enter the same amount borrowed, annual interest rate and repayment period for each scenario. If one offer uses a different term, fee, payment frequency or variable rate, it is not a like-for-like comparison.
The calculator estimates a regular amortising payment. It separates the expected monthly payment, total repayment and total interest so that a lower monthly number is not mistaken for a lower overall cost.
What changes the result
- A higher interest rate increases the interest portion of the payment.
- A longer term usually reduces the monthly payment but increases the number of interest-bearing payments.
- A larger deposit or smaller principal reduces the amount on which interest is calculated.
- Fees, insurance and variable-rate changes can make the lender’s actual cost different from a simple estimate.
A simple comparison method
- Calculate the offer using the quoted principal, rate and term.
- Record the monthly payment and total repayment.
- Add any known upfront or recurring fees separately.
- Ask the lender which assumptions can change before you decide.
Use the result carefully
This is a planning tool, not a credit decision or a loan offer. For an important borrowing decision, use the lender’s formal disclosure and check the currency, rate type, fees and early settlement terms.
Common questions
Should I compare monthly payment or total repayment?
Both. The monthly payment helps with cash-flow planning, while total repayment shows the long-term cost under the entered assumptions.
Does the calculator include lender fees?
No. Add fees separately or compare them using the lender’s formal quotation.
Can a longer loan cost more overall?
Yes. Spreading payments over a longer period can lower the monthly amount while increasing total interest.