What does Comparison Rate Calculator do?
Australian comparison rate calculator using the regulation formula. Add upfront, monthly, annual and discharge fees for $150,000 over 25 years or your loan.
- Price
- Free
- Account
- Not required
- Processing
- Entirely in your browser; your data and files are not uploaded
- Works on
- Any modern browser on desktop, tablet or phone
- Region
- Australia (AUD)
- Category
- Financial Calculators
How to use the comparison rate calculator (australia)
- Choose the standard example ($150,000 over 25 years, the amount home loan comparison rates are quoted on) or switch to your own loan amount and term.
- Enter the advertised interest rate.
- Enter the lender fees from the Key Facts Sheet: upfront fees, the monthly fee, any annual package fee and the discharge fee.
- Read the comparison rate, how many percentage points the fees add, and the total cost including fees. The table shows the same loan at other sizes.
Worked example
6.00% with $600 upfront, $10 a month and a $350 discharge fee
On the standard $150,000 over 25 years the monthly repayment is $966.45 and fees total $3,950, so the comparison rate is 6.16%. With the same rate and fees, a $600,000 loan over 30 years has a comparison rate of 6.04%, because fixed fees are a smaller share of a bigger loan. A $395 annual package fee on a 5.89% loan (no other fees) gives 6.26% on $150,000 over 25 years. Each figure was also checked against an independent implementation of the regulation formula.
How it works
Regulation 100 of the National Consumer Credit Protection Regulations 2010 defines the comparison rate as n × r × 100%, where n is the number of repayments a year (12 for monthly) and r solves Σ Aj ÷ (1 + r)j = Σ (Rj + Cj) ÷ (1 + r)j: the loan advanced equals the present value of the repayments R plus the credit fees and charges C (government fees, charges and duties are excluded). The calculator builds the monthly repayment schedule at the interest rate, places upfront fees at the start, the monthly fee with each repayment, the annual fee at the start of each loan year and the discharge fee with the last repayment, then solves for r by bisection and rounds to 0.01%, the precision the regulation requires. Regulation 97 lists the designated amounts and terms: $150,000 over 25 years, $30,000 over 5 years, $10,000 over 3 years, $2,500 over 2 years, $1,000 over 6 months and $250 over 2 weeks. Source: legislation.gov.au (compilation registered 5 September 2026), checked 6 October 2026.
Assumptions
- A fixed interest rate for the whole term and monthly principal and interest repayments.
- Fees are the ones you enter. Lenders include the credit fees and charges that are known when the rate is disclosed; redraw, break and early repayment fees and fee waivers are excluded.
- The annual fee is charged at settlement and on each anniversary while the loan runs.
- Variable rates that change, and introductory rates that revert, are not modelled.
Frequently asked questions
What is a comparison rate?
A single annual rate that combines the interest rate with most of the lender’s fees, so loans with different fee structures can be compared. Australian lenders that advertise an interest rate must also show the comparison rate, worked out on a designated example amount and term.
Why is it based on $150,000 over 25 years?
Regulation 97 sets the designated amounts and terms, and $150,000 over 25 years is the one used for home loans. Because most home loans today are larger, fixed fees add less to the real cost of a typical loan than the standard figure suggests. Use “My loan” to see your own figure; a home loan Key Facts Sheet also shows a personalised comparison rate.
What fees are left out?
Government fees, charges and duties (such as stamp duty and registration), and fees that depend on events, such as redraw, break and early repayment fees. Fee waivers are also ignored. The required warning says these may still influence the cost of the loan.
Is a lower comparison rate always cheaper?
Not always. It assumes you keep the loan for the whole term with no extra repayments. If you will refinance in a few years, upfront fees matter more; compare total cost over that period with the home loan comparison calculator.
Limitations
- An estimate. Lenders publish the official comparison rate for their own products.
- Monthly repayments only. The regulation uses 26.09 fortnightly or 52.18 weekly periods a year for other frequencies.
- Does not model offset accounts, which can make a loan with a higher comparison rate cheaper overall.