Question 1

How does this calculator compare two home loans?

Accepted Answer

It calculates the monthly repayment, total interest, and total fees for each loan using the standard amortization formula, then compares the total cost (repayments + upfront fees + ongoing fees) to show which loan saves you more over the full term.

Question 2

Should I always choose the loan with the lower interest rate?

Accepted Answer

Not necessarily. A loan with a lower rate but higher fees (application fees, monthly package fees) can end up costing more over the life of the loan. This calculator factors in all costs so you can make a true apples-to-apples comparison.

Question 3

What are upfront fees on a home loan?

Accepted Answer

Upfront fees include application fees, establishment fees, valuation fees, and legal fees charged by the lender at settlement. These are one-off costs that add to the total cost of the loan.

Question 4

What are ongoing monthly fees?

Accepted Answer

Some lenders charge a monthly or annual package fee in exchange for rate discounts or bundled products. These recurring fees add up over the loan term and should be factored into any comparison.

Question 5

Does this calculator account for offset accounts or extra repayments?

Accepted Answer

This calculator focuses on a straightforward comparison of two loans based on their stated rates, terms, and fees. For offset and extra repayment analysis, use our Extra Repayments & Offset Savings calculator.

Question 6

How accurate is the comparison for variable rate loans?

Accepted Answer

The calculator uses the rates you enter as fixed for the full term. Variable rates change over time, so treat the results as a snapshot comparison at current rates. Re-run the calculator if rates change significantly.

Loan Comparison Calculator (2026)

Inputs

Loan A

Loan B

Frequently asked questions

How does this calculator compare two home loans?

Should I always choose the loan with the lower interest rate?

What are upfront fees on a home loan?

What are ongoing monthly fees?

Does this calculator account for offset accounts or extra repayments?

How accurate is the comparison for variable rate loans?

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