Comparison Rate Calculator

A comparison rate is a single percentage that combines a loan's interest rate with most of its fees and charges, so loans can be compared on total cost rather than headline rate. Lenders must show it next to advertised rates. It does not include every cost, such as early repayment or break fees, and it is calculated on a standard example loan that may differ from yours.

Because it adds the loan's fees to the interest cost. A loan with a sharp rate but a large application fee or annual package fee will show a bigger gap between the two figures. When the comparison rate sits close to the interest rate, the loan has few fees. That gap is often the quickest way to spot a fee-heavy product.

Not always. The comparison rate is based on a standard example, so on a much larger or smaller loan, or if you refinance within a few years, the true cost order can change. Features matter too: an offset account can save more interest than a slightly lower rate. Use this calculator with your own loan amount, then weigh the features you will actually use.