Australia Personal Loan Calculator
Use our advanced calculator to estimate your loan repayments. Adjust the loan amount, term, and interest rate to find the perfect loan for your needs. Understand your personal loan in detail with 3 simple steps.
Enter the Loan Amount
The total amount you wish to borrow. Personal loans in Australia typically range from $2,000 to $100,000, though some lenders offer amounts up to $120,000.
Enter Loan Term
The length of time over which you'll repay the loan, typically between 1 and 7 years. Shorter terms mean higher monthly payments but less interest paid overall. Longer terms reduce monthly payments but increase the total cost of the loan.
Enter Interest Rate
The annual percentage rate charged on your loan. Personal loan rates in Australia currently range from approximately 6% p.a. for borrowers with excellent credit to over 20% p.a. for those with poor credit.
Personal Loan Calculator
Repayments · Total Interest · Full Schedule · 2025-26
Loan Details
Interest Rate & Term
Repayment Options
Loan Type
Secured personal loan?
A secured loan uses an asset as collateral — typically offering lower rates (6–12% p.a.) vs unsecured (8–20%+ p.a.). Per ASIC MoneySmart, most personal loans are unsecured.
Loan Summary
Based on a $20,000 personal loan at 11.00% p.a. over 5 years.
Your monthly repayment is $0. Over the full term you will pay $0 in interest, for a total repayment of $0.
ASIC MoneySmart — Personal Loans | ASIC — Comparison Rates | RBA — Lending Rate Statistics
Last verified: March 2026
Repayment Schedule
Monthly amortisation schedule showing how each repayment is split between principal and interest. Annual summary rows are highlighted in purple. In the early months, a larger share goes to interest.
Applies to variable rate loans. Fixed rate loans may have extra repayment caps — check your loan contract. Source: ASIC MoneySmart.
| Period | Repayment | Principal | Interest | Balance |
|---|---|---|---|---|
| Calculating… | ||||
Interest vs Principal
How much of your repayments reduce the principal vs pay interest, broken down by year. Early in the loan, more of each repayment goes to interest — the standard amortisation effect.
Annual Interest Paid
Principal vs Interest Split (Annual)
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|
| Calculating… | ||||
Making extra repayments early in the loan term has the greatest impact on total interest — because the balance is highest. Use the Extra Repayment Calculator in the Schedule tab to quantify your savings. Or see our Car Loan Calculator for vehicle-specific finance or our Compound Interest Calculator to see what that money could earn instead.
Rate Benchmark
Compare your personal loan interest rate against the RBA cash rate and the average unsecured personal loan rate in Australia. Remember to always compare comparison rates, not just advertised rates.
Rate Comparison
RBA Cash Rate — March 2026 (4.10%) | RBA Lending Rate Statistics | ASIC — Comparison Rate Guide
Last verified: March 2026
Compare Two Loans
Loan A mirrors your main calculator settings. Enter Loan B's rate and term to see a side-by-side cost comparison. The same loan amount and repayment frequency are used for both.
Side-by-Side Comparison
| Metric | Loan A | Loan B | Difference |
|---|---|---|---|
| Interest Rate | — | — | — |
| Loan Term | — | — | — |
| Repayment Amount | — | — | — |
| Total Interest | — | — | — |
| Total Repaid | — | — | — |
Adjust Loan B settings to compare.
Both loans use the same loan amount and repayment frequency. Always request a comparison rate from each lender before deciding.
For educational purposes only. Repayments are calculated using the standard amortisation formula and assume a fixed interest rate for the full loan term, repayments made on time, and no additional fees. Actual repayments may differ based on lender fees, comparison rate, rounding conventions, and variable rate movements.
This calculator does not account for establishment fees, monthly account-keeping fees, or early repayment penalties. Personal loan interest is not deductible for private use. Always consult a registered financial adviser or tax agent for advice specific to your circumstances.
Financing a vehicle? Compare dedicated car loan repayments against a personal loan — including balloon payment options — to find the most cost-effective path.
Personal Loan Types in Australia
Unsecured, secured, debt consolidation, line of credit, and peer-to-peer
According to ASIC MoneySmart, personal loans in Australia are regulated under the National Consumer Credit Protection Act, requiring lenders to conduct a responsible lending assessment before approving any application. The right loan type depends on your purpose, whether you have assets to offer as security, and the total cost over the full term.
| Loan Type | Security | Typical Rate | Best For |
|---|---|---|---|
| Unsecured Personal Loan Most common type in Australia | None | 8–20% p.a. | Debt consolidation, travel, renovations, medical expenses — no asset required as collateral |
| Secured Personal Loan Asset used as collateral | Asset | 6–12% p.a. | Lower rate loans where you can offer a vehicle, savings, or property equity as security |
| Debt Consolidation Loan Typically unsecured | None | 8–18% p.a. | Combining multiple credit cards, personal loans, and BNPL debts into one lower-rate repayment |
| Line of Credit Revolving credit facility | Sometimes | 10–22% p.a. | Flexible ongoing borrowing up to an approved limit — interest charged on drawn balance only |
| Peer-to-Peer (P2P) Loan Via online lending platforms | None | 7–15% p.a. | Borrowers with good credit history seeking competitive rates via marketplace lenders (e.g. SocietyOne, Plenti) |
| Payday / Small Amount Loan $2,000 or less, short term | None | Effective 48%+ p.a.* | Emergency funds only — very high effective cost. Per ASIC, consider hardship assistance programs first |
*Small amount credit contracts (SACCs) are regulated differently — fees capped at 20% establishment + 4% monthly maintenance. Avoid if possible. Source: ASIC — NCCP Act
Fixed Rate
- ✓Repayment amount never changes
- ✓Easier to budget over the full term
- ✓Protected if market rates rise
- –No benefit if market rates fall
- –Early repayment fees may apply
Variable Rate
- ✓Can benefit from RBA rate cuts
- ✓Usually allows unlimited extra repayments
- ✓Redraw sometimes available
- –Repayment rises if rates increase
- –Harder to budget long-term
Source: ASIC MoneySmart — Personal Loans | National Consumer Credit Protection Act
Personal Loan Rate Benchmarks
RBA cash rate and market rate context — March 2026
Personal loan interest rates are always significantly higher than the RBA cash rate — the difference reflects the unsecured nature of the lending, credit risk, and lender operating costs. The RBA cash rate (4.10% p.a., March 2026) sets the base cost of funds; personal loan spreads are typically 4–16 percentage points above this.
| Benchmark | Rate (p.a.) | Source | What it means |
|---|---|---|---|
| RBA Cash Rate | 4.10% | RBA Mar 2026 | The overnight rate — base cost of funds for lenders |
| Avg. Secured Personal Loan | ~8.50% | RBA Lending Rates | Market midpoint for secured personal loans — benchmark for asset-backed borrowing |
| Avg. Unsecured Personal Loan | ~11.50% | RBA Lending Rates | Market midpoint for unsecured loans — a rate below this is a competitive deal |
| ABS CPI Inflation | 3.80% | ABS Dec 2025 | The rate at which money loses purchasing power |
How the Calculator Rates Your Interest Rate
| Rating | Condition | Meaning |
|---|---|---|
| Exceptional | Rate ≤ 4.10% (cash rate) | Below the RBA cash rate — very unusual; likely a promotional secured rate |
| Competitive | Rate > 4.10% and ≤ 11.50% | Below the market average — a good deal worth proceeding with |
| Above Average | Rate > 11.50% | Above the market average — consider shopping around or improving your credit score |
For a $20,000 loan over 5 years, the difference between 9% and 12% is approximately $1,720 in total interest. A 3% rate reduction on a $30,000 loan saves approximately $2,600 over 5 years. Shopping around and comparing comparison rates — not just advertised rates — is always worthwhile.
RBA Cash Rate — March 2026 (4.10%) | RBA Lending Rate Statistics | ABS CPI — December 2025 (3.80%)
Last verified: March 2026
Debt Consolidation — When It Makes Sense
Using a personal loan to combine multiple debts and reduce total interest
Debt consolidation means taking out a single personal loan to pay off multiple existing debts — typically credit cards, buy-now-pay-later (BNPL) balances, and other personal loans — replacing them with one regular repayment at a lower interest rate. According to ASIC MoneySmart, consolidation only saves money if the new rate is meaningfully lower than your existing debts and you avoid accumulating new debt on the cleared accounts.
✓ When Consolidation Works
- ✓New personal loan rate is lower than your existing debts
- ✓You have multiple high-rate debts (credit cards at 18–22%)
- ✓You can close or reduce limits on cleared credit cards
- ✓One repayment simplifies your budget and reduces missed payments
- ✓Fixed rate gives certainty for the full term
✗ When Consolidation Doesn't Help
- –New rate is not significantly lower than existing debts
- –You extend the term significantly — paying more interest overall
- –You reuse cleared credit cards and accumulate new debt
- –Establishment fees or break costs negate the interest saving
- –Your credit score doesn't qualify you for the lower rate advertised
Worked example: $8,000 on a credit card at 19.99% + $5,000 BNPL at 0% (but $300 annual fee) = $13,000 total. A consolidation personal loan at 10.5% over 3 years = total interest of ~$2,190. If left on the credit card at minimum repayments, the $8,000 alone could take 10+ years and cost $8,000+ in interest. Source: ASIC MoneySmart.
Critical step: After consolidating, cancel or reduce the credit limit on cleared cards. Per ASIC MoneySmart, the most common failure of debt consolidation is re-accumulating the cleared credit card balances — ending up with both the personal loan repayment and new credit card debt simultaneously.
Source: ASIC MoneySmart — Personal Loans | ASIC MoneySmart — Debt Consolidation
ATO Interest Deductibility on Personal Loans
When personal loan interest is and is not tax deductible — ATO rules for 2025-26
According to the ATO, personal loan interest is only deductible when the borrowed funds are used to earn assessable income — for example, investing in income-producing assets. If the loan funds are used for private purposes (holidays, weddings, home appliances), the interest is not deductible at all.
| Loan Purpose | Deductible? | Notes |
|---|---|---|
| Investment in income-producing shares | Yes | Interest deductible in proportion to income-producing use. Dividend income must be declared. Per ATO. |
| Deposit on an investment property | Yes | Interest deductible from when the property is available for rent. Must be used wholly for the investment property deposit. |
| Mixed use (private + investment) | Partial | Only the income-producing proportion is deductible. Keep clear records of how the funds were used. |
| Holiday / travel | No | Private purpose — not deductible under any circumstances. |
| Wedding / personal expenses | No | Private purpose — not deductible. |
| Home renovation (owner-occupied) | No | Private purpose — not deductible. Only deductible if the property is an investment property available for rent. |
| Debt consolidation (private debts) | No | If the underlying debts were for private purposes, consolidating them does not make the interest deductible. |
| Business expenses (sole trader / ABN) | Yes | If the loan funds are used wholly for business expenses, interest is deductible as a business expense against business income. |
Tracing requirement: The ATO requires that you can demonstrate a clear connection between the loan funds and the income-producing asset. If loan proceeds are mixed with private funds in the same bank account before being applied to an investment, the deductibility becomes harder to establish. Keep the investment funds in a separate account wherever possible. Always seek advice from a registered tax agent.
Source: ATO — Interest, Dividend and Other Investment Income Deductions
Personal Loan Repayment Formulas
How repayments, total interest, and maximum borrowing power are calculated
The annuity formula used by all lenders to calculate the fixed periodic repayment needed to fully repay a loan at a given rate over a set term.
P = principal | r = periodic rate | n = total repayments
To convert an annual rate to a weekly or fortnightly equivalent, use the compound equivalent rate — simple division understates the effect of more frequent compounding.
n = 12 (monthly), 26 (fortnightly), 52 (weekly)
The reverse PMT — solve for the maximum principal you can borrow given a maximum repayment budget, rate, and term.
PMT = max repayment budget per period
Total interest is the difference between the total amount you repay and the original loan amount. Always compare this figure — not just the repayment amount.
A longer term lowers repayments but significantly increases total interest
Example: A $20,000 loan at 11.00% p.a. over 5 years has a monthly repayment of ~$435, total interest of ~$6,109, and total repayment of ~$26,109 — 30.5% more than the loan amount. Over 7 years at the same rate, total interest rises to ~$8,781. A shorter term is significantly cheaper despite the higher monthly repayment. Source: ASIC MoneySmart.
Source: ASIC MoneySmart — Personal Loans | ASIC — Comparison Rate
Frequently Asked Questions
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