Loan Comparison Calculator

To compare home loans, look at the total cost over the loan term, not just the advertised interest rate. Enter the loan amount you want to borrow, then add each loan offer with its interest rate, loan term (typically 30 years), and any annual fees. The comparison table shows monthly repayment, total interest, total fees, and total cost for each loan. The loan with the lowest total cost is the best value — even if its monthly repayment is slightly higher. You can compare up to four loans side by side.

The total cost of a home loan is everything you pay back over the life of the loan: the principal (amount borrowed) plus total interest plus all fees. For example, a $500,000 loan at 6.50% over 30 years costs about $636,000 in interest alone, plus any establishment, annual, or monthly account fees. Total cost is the truest comparison number — a loan with a lower rate but high annual fees can end up costing more than a slightly higher-rate loan with no fees.

The interest rate is the annual percentage charged on your loan balance. The comparison rate includes the interest rate plus most upfront and ongoing fees — establishment fees, annual account-keeping fees, and service fees — expressed as a single annual percentage. Under the Credit Contracts and Consumer Finance Act (CCCFA), NZ lenders must disclose the comparison rate. A loan with a low advertised rate but high fees can have a much higher comparison rate, making it more expensive overall. Our total cost column captures this directly in dollar terms.

This calculator lets you compare loans with different rate structures side by side. For a fixed-rate loan, enter the fixed rate and the fixed term (e.g. 6.50% fixed for 2 years). For a floating-rate loan, enter the current floating rate. Most NZ borrowers split their loan across fixed terms — for example, half at 1-year fixed and half at 2-year fixed. To model a split loan, create two loan entries with the corresponding amounts and rates. The calculator treats each as a separate loan, so the total is the sum of both. Note that the calculator assumes the rate stays constant for the full loan term; in reality, fixed rates revert to floating after the fixed period.

Annual fees may seem small but they compound over 25-30 years. A $200 annual fee on a 30-year loan adds $6,000 in total fees — and that is before considering that you could have used that $200 each year to make extra repayments, reducing your interest. A loan at 6.50% with no fees costs less than a loan at 6.40% with $300/year in fees over a 30-year term for most loan sizes. Always compare the total cost column — it folds in both interest and fees over the full term.