Comparison rate calculator
What is your true comparison rate?
A 5.99% loan with $1,200 upfront and $8 per month can cost more than a 6.10% loan with none. Enter your quoted rate and the fees below to see the honest number the ACCC mandates every lender to disclose. It updates as you type.
Calculated per Schedule 1 of the National Consumer Credit Protection Regulations 2010. Monthly compounding, principal and interest, no offset assumed. Indicative only. Not credit assistance. Confirm with a Central Lending Solutions broker.
Why this matters
What this calculator is actually telling you.
A 5.99% loan with $1,200 in fees can cost more than a 6.10% loan with no fees. The comparison rate is how the ACCC mandates lenders to disclose the real cost, so borrowers can measure lenders on the same yardstick instead of just the advertised headline.
The formula rolls the upfront cost and monthly ongoing cost into an effective rate over the full loan term. A larger loan makes the same fee proportionally smaller. A shorter term makes upfront fees more painful because they get amortised over fewer months. That is why the gap between quoted and comparison shrinks the higher your loan amount goes.
Questions
Frequently asked.
How is the comparison rate calculated?
The comparison rate is the effective interest rate a lender must disclose under Schedule 1 of the National Consumer Credit Protection Regulations. It combines the advertised interest rate with mandatory upfront and ongoing fees, expressed as a single annual percentage. Our calculator uses the same monthly compounding formula and returns a figure typically within 0.02 pp of a lender's official disclosure.
Why is my comparison rate higher than the quoted rate?
Any upfront application, valuation or settlement fee, plus any ongoing monthly package or account fee, adds to the true cost of the loan. Those costs get expressed as extra basis points above the quoted rate. A 6.20% loan with $1,200 upfront and $8 per month over 30 years lands around 6.24% comparison. The bigger the fees relative to loan size, the bigger the gap.
Should I choose the loan with the lowest comparison rate?
Usually yes, but not always. Comparison rate assumes you hold the loan for the full term. If you plan to refinance, sell or pay off early, the upfront fees weigh less over the shorter horizon and a higher-fee loan with a lower interest rate can actually cost less. A Perth broker can model both scenarios against your real timeline.
Will using this calculator affect my credit score?
No. The calculator runs entirely in your browser. No data is submitted to any lender. Your credit file is untouched.
Where do I go if I want to apply this to my own loan?
Call 0489 082 257 or send your details through. A Central Lending Solutions broker will run the comparison rate against your real scenario across more than 30 lenders and show you where the honest number sits.
Want this applied to your real situation?
Talk to Harj.
No fee for most clients. A real conversation about your numbers and your options across 30+ lenders. Most clients hear back the same day.