Comparison rate calculator

A low advertised rate can hide a loan that’s expensive once the fees are added up.

Our comparison rate calculator combines your loan’s interest rate with the fees that come with it, giving you one number that reflects its true cost.

It’s the same figure lenders are legally required to disclose, worked out for your actual loan details rather than a standard example.

A comparison rate combines a loan’s advertised interest rate with most of its mandatory fees and charges into a single percentage. It exists so you can compare loans properly, rather than being drawn in by the headline rate alone.

Lenders are required to display it alongside the advertised rate under the National Credit Code. It’s calculated using a standard example, a $150,000 loan over 25 years with principal and interest repayments, which is worth keeping in mind if your loan is a very different size.

The disclosure requirement sits under the National Consumer Credit Protection Act, overseen by ASIC.

• Shows your loan’s true cost, tailored to your actual amount and term rather than the standard example.
• Makes two loans with different fee structures genuinely comparable.
• Flags when a low headline rate is being propped up by high fees.
• Gives you a sharper question to ask your lender before you sign.

The comparison rate is useful precisely because it’s standardised, but that means it doesn’t capture everything.

• Included: the interest rate (plus any revert rate once an introductory period ends), upfront fees like application and valuation costs, and ongoing account fees.
• Excluded: government charges such as stamp duty, lenders mortgage insurance and optional features like offset accounts or redraw.
• If the comparison rate sits close to the advertised rate, the loan likely carries minimal fees. A big gap between the two is worth asking about.

It’s a guide, not a guarantee. Your actual cost will depend on your loan amount, term and the features you use, which is exactly why we tailor the calculation to your numbers rather than the standard example.

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