Different loans have different fees, features and repayment options. Use our loan calculator to see how the numbers stack up between two loans.
See how the numbers stack up.
When it comes to comparing home loans it’s not just about the interest rate. Different loans have different fees, features and repayment options. Sometimes, the loan with a lower interest rate may end up being more costly when you add up all the fees and charges.
Our Compare Two Loans Calculator is a good place to start to see how the numbers stack up between two loans, but if you’re after a more accurate assessment of your options, get in touch and we’d love to help.
Click on the Get Started button to get started online or submit your question in the form below and one of our mortgage brokers will get back to you as soon as possible.
How to use this loan comparison calculator
This calculator lets you compare the true total cost of two loans side by side. For each loan, enter the loan amount, loan term, upfront fees, ongoing fees, and interest rate. If a loan has an introductory rate that reverts to a higher ongoing rate after a set period, you can enter both rates and the length of the intro period. The calculator then works out the total cost of each loan over its full term — repayments plus all fees — so you can see at a glance which option costs you less overall.
Why the interest rate alone doesn’t tell the whole story
A lower interest rate doesn’t automatically mean a cheaper loan. Lenders charge a range of fees that add to your total cost — sometimes significantly. A loan with a slightly higher rate but no ongoing fees can easily end up cheaper over five or ten years than a low-rate loan with a $395 annual package fee. This calculator makes that comparison straightforward by putting everything into a single total cost figure for each loan.
Common fees to watch for include:
- Upfront fees – application fees, settlement fees, and valuation fees charged when the loan is established
- Ongoing fees – monthly account-keeping fees or annual package fees charged throughout the life of the loan
Enter these into the calculator alongside the interest rate and you will get a much more accurate picture of what each loan actually costs.
Understanding introductory interest rates
Some lenders offer a reduced “honeymoon” rate for an initial period – often six to twelve months – before the loan reverts to a higher ongoing rate. These introductory rates can look attractive on paper, but if the revert rate is significantly higher, you may end up paying more over the full loan term than you would with a loan that has a steady rate from day one.
This calculator handles intro rates directly. Enter the introductory rate, the length of the intro period, and the ongoing rate it reverts to, and the calculator will factor in both phases when working out the total cost. This makes it easy to compare a loan with an introductory offer against one with a single consistent rate and see which is genuinely better value for your situation.
A note on comparison rates
You may have noticed lenders advertising a “comparison rate” alongside their headline interest rate. In Australia, lenders are required to display a comparison rate calculated on a standardised loan of $150,000 over 25 years. Because most borrowers are taking out loans significantly larger than that over different terms, the advertised comparison rate often bears little resemblance to what you would actually pay.
This calculator does not generate a comparison rate in that regulated sense. Instead it does something more useful for your real situation: it calculates the actual total cost of each loan based on your specific loan amount, your term, and the fees you have been quoted. That gives you a genuine, personalised comparison rather than a standardised figure that may not reflect your circumstances at all.
What this calculator works out for you
For each of the two loans you enter, the calculator produces a total cost over the loan term that combines:
- All principal and interest repayments
- Any upfront fees paid at settlement
- All ongoing fees paid throughout the life of the loan
- The effect of an introductory rate period where applicable
Comparing those two totals gives you a clear, dollar-for-dollar answer to the question: which loan costs me less?
When comparing loans matters most
Choosing between two lenders
If you have received offers from two different lenders, this calculator is the quickest way to cut through the marketing and compare the real cost. Enter the exact figures from each offer – rate, fees, and term – and the numbers will tell you which deal is better for your specific loan amount.
Deciding whether to refinance
Refinancing can save a significant amount over the remaining life of your loan, but it comes with switching costs. Use the calculator to compare your current loan (including any ongoing fees you are already paying) against the new loan you are considering (including its upfront fees). If the new loan’s total cost over your remaining term is lower even after accounting for those upfront costs, refinancing is likely worth it.
Evaluating an introductory rate offer
Introductory rate loans are one of the most common areas where borrowers are caught out. The low honeymoon rate looks great, but the revert rate is what you will pay for the majority of the loan term. Enter the intro rate and revert rate into the calculator alongside a comparable loan with no intro rate and you will quickly see whether the introductory offer actually saves you money or just front-loads a saving that disappears once the rate reverts.
Assessing the impact of fees
Ongoing fees are easy to overlook because they are paid in small increments — $10 or $30 a month feels insignificant. But a $30 monthly fee adds up to $10,800 over a 30-year loan term. Enter it into the calculator and you can weigh that directly against a loan that charges a slightly higher rate but no ongoing fees.
Getting a more detailed assessment
This calculator is designed to give you a quick, clear comparison between two loans using the figures you already have. It is a useful starting point — but it cannot account for every factor that affects the right loan choice for your situation. Features like offset accounts, redraw facilities, repayment flexibility, and lender serviceability policies all play a role in which loan is genuinely the best fit.
That is where a mortgage broker adds real value. At Ingram Financial, we compare loans across a wide panel of lenders and can give you a full picture of your options — including features and lender policies that no calculator can capture. We are based in the Sutherland Shire and work with borrowers across Sydney and nationally.
Call Shannon or use the contact form on this page for an obligation-free conversation about your loan options.
Frequently asked questions
Yes – while it is most commonly used to compare home loans, you can use it to compare any two principal and interest loans where you know the rate, term, and fees. It is not designed for interest-only loans, as those have a different repayment structure.
Yes. You can enter both an introductory rate and an ongoing (revert) rate for each loan, along with the length of the introductory period. The calculator applies the intro rate for that period and the ongoing rate for the remainder of the term when working out the total cost.
Include any upfront fees you will be charged at settlement – such as application, valuation, or legal fees – and any fees you will pay on a recurring basis, such as monthly account-keeping fees or annual package fees. The more complete your fee information, the more accurate the comparison will be.
The comparison rate that lenders are required to advertise is calculated on a standardised $150,000 loan over 25 years. That figure is intended to help consumers make basic comparisons between products, but for most borrowers it is not representative of their actual loan. This calculator uses your real loan amount and term, which gives you a comparison that reflects your actual situation rather than an arbitrary standard.
Total cost is a very important factor – but it is not the only one. Loan features like offset accounts, the ability to make extra repayments, redraw access, and portability can also affect which loan is the best choice for your circumstances. A broker can help you weigh those features alongside the cost comparison to find the loan that suits you best.
Need some help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.