Personal Loan Calculator

NZ personal loans use a fixed or variable annual interest rate applied to the reducing balance. Each monthly repayment covers the interest accrued that month plus part of the principal. As the balance reduces, the interest portion of each payment shrinks and the principal portion grows — a standard amortising loan. The interest rate you qualify for depends on your credit score, whether you have security (secured vs unsecured), and the lender.

The advertised rate is the annual interest rate only. The comparison rate (or effective annual rate) includes the interest rate plus most upfront and ongoing fees — establishment fees, monthly account-keeping fees, and annual fees — expressed as a single annual percentage. It shows the true cost. A loan with a low advertised rate but high fees can have a much higher comparison rate. Under the Credit Contracts and Consumer Finance Act (CCCFA), NZ lenders must disclose the comparison rate.

An establishment fee is the upfront charge for setting up the loan, typically $150–$500 for personal loans. When the establishment fee is added to the loan principal (capitalised), you pay interest on the fee for the full loan term — a $250 fee on a 5-year loan at 13% costs roughly $85 in extra interest. Ongoing monthly fees of $5–$15 per month also compound the cost. Always compare the total cost (repayments + all fees) rather than just the monthly payment.

A longer loan term reduces your monthly payment but significantly increases total interest paid. For example, a $10,000 loan at 13% over 3 years costs about $2,160 in interest; over 5 years interest rises to $3,700. The tradeoff is always monthly affordability vs total cost. Our calculator lets you compare different terms instantly — look at the total interest and total cost figures side by side.

A secured personal loan is backed by an asset (typically a car) that the lender can repossess if you default. Secured loans generally offer lower interest rates — often 8%–13% — because the lender's risk is reduced. An unsecured personal loan has no asset backing, so rates are higher — typically 13%–25% — reflecting the higher risk to the lender. Approval for unsecured loans depends more on your credit score and income. Use this calculator for both types; adjust the rate to match your offer.