Home Loan Comparison Calculator - True Cost
Compare up to three loans on total cost rather than headline rate. Upfront and annual fees routinely reverse the ranking over a realistic holding period, which is exactly what a rate-only comparison hides.
Your details
How long you realistically expect to keep this loan.
Loan A
Loan B
Loan C
Leave at zero to compare only two loans.
| Loan amount | $700,000 |
| Comparison period | 5 years |
| Loan A - monthly repayment 5.89%, $600 upfront, $395/yr | $4,147 |
| Loan B - monthly repayment 6.14% | $4,260 |
| Loan | Rate | Repayment | Interest | Fees | Total cost | Balance left |
|---|---|---|---|---|---|---|
| Loan A | 5.89% | $4,147 | $202,530 | $2,575 | $205,105 | $649,534 |
| Loan B | 6.14% | $4,260 | $211,440 | $0 | $211,440 | $651,576 |
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Frequently asked questions
Why not just pick the lowest rate?
Because fees are fixed and interest is proportional. On a $700,000 loan a 0.25% rate difference is about $1,750 a year, so a $395 annual fee and $600 upfront can be worth paying for a lower rate. On a $200,000 loan the same fees can outweigh it. The ranking depends on your loan size and how long you keep it.
What does the comparison rate actually tell me?
It bundles fees into a single rate, but on a standardised $150,000 loan over 25 years. If your loan is larger or shorter, the published comparison rate misrepresents your true cost. It is useful for a rough sort, not a decision.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.