Australian Personal Loan Calculator

Personal loan interest is calculated on the outstanding balance each period using the standard reducing-balance amortisation formula. Each repayment covers the interest accrued on the current balance first, then the remainder reduces the principal. Early in the loan, most of each repayment goes to interest, because the balance is high.

For a AUD 20,000 loan at 11% p.a. over 5 years, the monthly repayment is about AUD 435. Year 1 interest totals roughly AUD 2,043, while Year 5 interest falls to about AUD 298 as the balance shrinks.

Common personal loan fees in Australia include an establishment fee (around AUD 150–600, one-off — included in the comparison rate), a monthly account-keeping fee (around AUD 5–15 per month — also in the comparison rate), an early repayment or break cost on some fixed rate loans, a late payment fee (around AUD 15–35 per missed payment), and a redraw fee where a redraw facility is offered. These ranges are indicative and vary by lender.

The full fee schedule is set out in each loan contract, and establishment fees alone can add hundreds of dollars to the total cost of a short-term loan. This calculator estimates interest only and does not model these fees.

Personal loan rates vary widely by lender and borrower. As an indicative guide, unsecured rates commonly sit around 11.50% p.a. and secured around 8.50% p.a. as of mid-2026. These are Money Snap estimates, not official RBA figures — the RBA discontinued its personal-loan rate series in 2020.

Actual rates vary with credit score, income, employment stability, the lender, and the loan amount. Borrowers with strong credit and stable income may access lower rates, while those with adverse credit history may face rates of 18% p.a. or higher.

Personal loan interest is not deductible for private purposes (such as holidays, weddings, or home appliances). According to the ATO, if the loan proceeds are used wholly or partly for income-producing purposes — such as investing in shares or funding a rental property deposit — the corresponding proportion of interest may be deductible.

The key rule is the use of the funds, not the type of loan. Mixed-use loans must be apportioned, and the deductibility position is determined by the ATO. A registered tax agent can advise on individual circumstances.

The total cost of a personal loan is the loan amount plus total interest plus total fees. For example, a AUD 20,000 unsecured loan at 11% p.a. over 5 years comes to about AUD 26,091 (loan plus interest), before any fees.

At a higher rate of 15% p.a., the total rises to about AUD 28,548 — meaning the higher-rate loan costs roughly AUD 2,457 more for the same amount and term. Comparing the total repayment figure, not just the weekly or monthly repayment, shows the true difference between loans.

On variable rate personal loans, most lenders allow unlimited extra repayments at no cost — these reduce the principal directly and save interest. On fixed rate loans, extra repayments may be capped (for example AUD 5,000–10,000 per year) or attract a break cost if the loan is paid out early.

Extra repayments have the greatest impact early in the loan, when the balance is highest. On a AUD 20,000 loan at 11% p.a. over 5 years, paying an extra AUD 100 per month saves about AUD 1,489 in interest and clears the loan roughly 14 months early. The extra repayment rules for a specific loan are set out in its Product Disclosure Statement.

Missing a repayment usually triggers a late payment fee (around AUD 15–35), and interest continues to accrue on the outstanding balance. If repayments are missed persistently — typically 60 or more days overdue — the lender can list a default on the credit file with one of the two main credit reporting bodies (Equifax and Experian), where it can remain for up to 5 years.

Per ASIC, a borrower experiencing financial hardship has a legal right to request a hardship variation, and lenders must consider the request under the NCCP Act. Contacting the lender early is the pathway set out under that framework.

When repayments are calculated correctly for each frequency, the difference in total interest is small. On a AUD 20,000 loan at 11% p.a. over 5 years, monthly repayments produce about AUD 6,091 in interest, fortnightly about AUD 6,043, and weekly about AUD 6,022 — a difference of only around AUD 48 to AUD 69.

The larger savings sometimes quoted come from accelerated fortnightly repayments — paying half the monthly amount every fortnight, which results in 26 half-payments (the equivalent of 13 monthly payments) each year rather than 12. That is an extra repayment effect, not the frequency itself. Matching the repayment frequency to the pay cycle helps ensure funds are available when each repayment falls due.

Most variable rate personal loans allow early repayment at any time with no penalty. Fixed rate loans may charge an early termination fee, also called a break cost — typically calculated on the interest the lender would have earned on the remaining balance.

Any early repayment fee is set out in the loan contract, and lenders can provide a payout figure on request. Comparing the interest saved against the break cost shows whether early payout reduces the overall cost.

Criteria vary by lender, but most Australian personal loan lenders look for: age of 18 or older; residency as an Australian citizen, permanent resident, or eligible visa holder; income sufficient to service the repayments; credit history without current defaults, bankruptcies, or serious adverse listings; and identity verification via a 100-point ID check.

Per ASIC, lenders must also assess that the loan is not unsuitable under the responsible lending obligations in the NCCP Act.

Yes — every full loan application triggers a hard credit enquiry on the credit file, which other lenders can see and which can temporarily reduce the credit score. Multiple applications in a short period — known as rate shopping — can reduce the score further and make lenders view the applicant as higher risk.

Some lenders offer pre-qualification with only a soft enquiry, which does not affect the credit score, before a full application is submitted.

Some lenders accept certain Centrelink payments as income for personal loan applications, though loan amounts and lender options are typically more limited. The specific payments accepted vary by lender.

A no-interest loan scheme (NILS) may also be available for those on lower incomes — NILS provides interest-free loans up to AUD 2,000 for essential goods and services, administered by Good Shepherd.

In Australia there are two main credit reporting bodies, Equifax and Experian. Credit scores generally run between zero and either 1,000 or 1,200 depending on the body. There is no universal minimum for a personal loan, but as an indicative guide a higher score opens access to the lowest rates, a mid-range score is approved by many lenders at higher rates, and a low score sees limited options — sometimes pointing toward a secured loan.

A free copy of the credit report is available from each credit reporting body every 3 months.

A personal loan suits large, defined expenses where a fixed repayment schedule, a known end date, and typically a lower rate than a credit card are useful. A credit card suits smaller, recurring purchases where the balance can be paid in full each month, avoiding interest.

A carried credit card balance attracts an effective rate of around 18–22% p.a., typically far higher than a personal loan. For one-off large expenses such as a renovation or medical procedure, a personal loan is usually cheaper than carrying the cost on a credit card at minimum repayments, because the personal loan rate is typically lower and the balance is repaid on a fixed schedule.

Debt consolidation can reduce total interest when three conditions hold: the personal loan rate is meaningfully lower than the existing debts, the cleared cards are closed or have their limits reduced, and the term is not extended so far that more interest is paid overall.

According to ASIC MoneySmart, switching to a longer term can mean paying more in interest and fees overall, and turning unsecured card debt into debt secured against an asset puts that asset at risk. A common pitfall is re-accumulating the cleared card balances, leaving both a personal loan and new card debt. Consolidation is a tool rather than a cure — its benefit depends on changed spending habits alongside the lower rate.

The RBA cash rate (4.35% p.a. as of mid-2026) influences variable rate personal loans: when the RBA raises the cash rate, variable personal loan rates typically rise, and when it cuts, they typically fall. Fixed rate personal loans are not affected during the fixed term, though future fixed rates at refinance reflect the prevailing environment.

Unlike home loans, personal loan rates do not always move immediately or in exact proportion to RBA changes — lender margins, funding costs, and competition also play a role.

A No Interest Loan Scheme (NILS) is a community lending program administered by Good Shepherd Australia, providing loans of up to AUD 2,000 for essential goods and services (including car repairs), or up to AUD 3,000 for a rental bond or recovery from a natural disaster, with zero interest and no fees. Eligibility generally requires a Health Care Card or Pension Card, or income below set thresholds, plus a demonstrated ability to repay.

Loans cover essential goods and services such as whitegoods, medical equipment, education costs, and car repairs. For those who qualify, NILS carries no interest cost, unlike a standard personal loan or payday loan. Details and providers are listed on ASIC MoneySmart.

Personal loans use reducing-balance amortisation. This calculator applies a nominal periodic rate — the annual rate divided by the number of repayments per year.