Introduction
This CommBank Personal Loan Calculator shows you what a personal loan will really cost. Type in how much you want to borrow, pick a loan term, and choose how often you want to pay. The calculator works out your repayment right away.
It also shows the total interest, the fees, and the full cost of the loan. You can pick a secured or unsecured loan, add your own interest rate, and see the comparison rate, which includes fees.
With this tool you can:
- See your weekly, fortnightly, or monthly repayment
- Find out how much interest you pay in total
- Add extra repayments to pay the loan off sooner and save money
- View a full repayment schedule and simple charts
- Compare two loan options side by side
Every number comes with a step-by-step working, so you can see how the math is done. Use it to plan your budget before you apply.
How to use our CommBank Personal Loan Calculator
Enter your loan amount, term, repayment frequency, loan type and any fees. The personal loan calculator then shows your repayment, total interest, total fees, total cost, a payoff date and a full repayment schedule.
Loan amount: Type how much you want to borrow, from $1,000 to $50,000. You can also drag the slider to set the amount.
Loan term: Pick how long you want to take to pay the loan back, from 1 to 7 years. A shorter term means bigger repayments but less interest.
Repayment frequency: Choose weekly, fortnightly or monthly. This sets how often you pay and how your repayment is shown.
Loan type: Choose secured or unsecured. Secured loans are backed by an asset, like a car, and get a lower interest rate.
Loan purpose: Pick what the loan is for, such as a car, renovation or debt consolidation. The tool shows a tip and the security type that usually suits it.
Extra repayment per period: Add any extra money you plan to pay each time. Extra repayments cut your interest and clear the loan sooner.
Custom rate: Tick the box to type your own interest rate between 1% and 30% p.a. Leave it off to use CommBank's representative rate: 16.99% p.a. for an unsecured personal loan or 8.79% p.a. for its Secured Fixed Rate Car Loan.3 At least half of CommBank's approved customers get the representative rate or lower, and your own rate depends on its assessment of your application.3
Establishment fee: Enter the one-off application fee your lender charges to set up the loan. The box starts at $250, CommBank's usual establishment fee.3
Monthly account-keeping fee: Enter any fee charged each month to keep the loan open. The box starts at $15, CommBank's monthly loan service fee.3 Put 0 if there is none.
Annual fee: Enter any yearly fee on the loan. Put 0 if there is none.
Affordability check: Click Comfortably, Manageable or Tight. The tool gives you a tip, and may suggest a smaller loan amount. Lenders also look at your debt load, so check your DTI Calculator result before applying.
Scenario B loan amount, term and rate: Enter a second loan to compare. The calculator shows both side by side so you can see which one costs less.
What Is a Personal Loan?
A personal loan is money you borrow from a bank and pay back over a set time. You pay it back in regular amounts, called repayments. On a fixed rate your repayments stay the same, while on a variable rate they can go up or down as interest rates change.1 The calculator keeps the rate the same for the whole term. Each repayment covers two things: part of the money you borrowed (the principal) and the interest the bank charges you. Personal loans are usually repaid over one to seven years.1 CommBank lends $4,000 to $50,000 on its unsecured personal loans and up to $120,000 on its Secured Fixed Rate Car Loan, over one to seven years.3
Secured vs Unsecured Loans
A secured loan is backed by something you own, like a car. If you stop paying, the bank can take that item.1 Because there is less risk for the bank, the interest rate is lower. An unsecured loan is not backed by anything, so the rate is higher. Car loans can be secured or unsecured. At CommBank, the secured option is a car loan secured against the car you are buying, and its personal loans for other things, such as a holiday, home improvements or debt consolidation, are unsecured.3
Interest Rate and Comparison Rate
The interest rate is the yearly cost of borrowing, shown as a percent (p.a. means "per year"). The comparison rate is a better guide to the true cost, because it adds fees to the interest rate.2 A comparison rate is worked out for an example loan and is only accurate for that example, so a different amount or term can give a different rate.1 CommBank works out its personal loan comparison rates on a $30,000 loan over 5 years.3 Always compare loans using the comparison rate, not just the interest rate. It works much like an APR Calculator.
Fees to Watch For
- Establishment fee: a one-off fee to set up the loan.
- Monthly account-keeping fee: a small fee charged every month.
- Annual fee: a yearly fee on some loans.
- Early repayment fee: a fee some loans charge if you pay the loan off early.1
- Missed payment fee and default interest: extra costs if you miss a repayment.1
Small fees add up. A $10 monthly fee over 5 years costs $600. CommBank's establishment fee is usually $250, and it charges a $15 monthly loan service fee.3
How the Loan Term Changes Your Cost
A short term means bigger repayments but less total interest. A long term means smaller repayments but more total interest. For example, $10,000 at 16.99% p.a. costs about $2,833 in interest over 3 years and about $7,161 over 7 years.
Repayment Frequency
You can often pay weekly, fortnightly, or monthly. Paying weekly or fortnightly cuts your balance a little faster, so you pay slightly less interest overall. Pick the one that matches your pay cycle.
Extra Repayments Save Money
Paying a bit more than you need to goes straight onto the principal. That lowers the balance interest is charged on, so you finish the loan sooner and pay less interest. Even $20 extra each month can make a real difference. Check that your loan allows free extra repayments, as some fixed-rate loans charge a break fee.1
Before You Borrow
Make sure the repayment fits your budget with room to spare. On a variable rate, check you could still afford it if the rate rose by 2% or 3%.1 Add up your income, bills, and other debts first with the Monthly Budget Calculator, and keep some savings aside. If the repayment feels tight, borrow less or choose a longer term. Lenders also look at your credit score, income, and existing debts when they decide your rate.
These numbers are estimates only. Your real rate and repayment depend on the lender's assessment of your application.