Calculate your personal loan repayments
Before you start the personal loan application process, it's important to be able to have an idea of what your ideal personal loan might cost. You can use Savvy's personal loan repayment calculator today to find out how different loan terms and interest rates affect what you might spend overall.
The product features of a personal loan through Savvy
You can compare a wide range of personal loan offers with competitive rates for your profile thanks to our panel of trusted lenders.
By selecting a loan as short as one year or as long as seven, you can have a say in the cost of your repayments and your loan as a whole.
You can borrow smaller sums as low as $2,000 or apply to receive a greater amount of money all the way up to $75,000 with your lender.
There is no requirement for you to supply an asset to serve as collateral for your personal loan, freeing you up to spend however and wherever you see fit.
Thanks to our range of lending partners, you can choose to fix the interest on your personal loan or leave it variable and open to market movement.
You don’t have to stick to the schedule if you don’t want to. You can find and compare lenders who charge no fees for settling your loan early.
Types of personal loan
With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.
Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.
Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.
Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.
If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.
Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.
There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.
Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.
Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.
There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.
Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.
Why compare personal loans through Savvy?
Top tips for reducing the cost of repaying your personal loan
One of the first steps you can take to save money is to choose a shorter loan term. By reducing your time spent paying interest and fees, you can reduce the cost of both and save yourself a meaningful amount of money. A $30,000, five-year personal loan at 7.5% p.a. interest will end up costing you almost $2,500 more in interest alone, for instance.
Similarly, contributing more than the minimum can help you save and reduce your loan term. The five-year loan from the previous example comes with monthly repayments of $601, but simply paying an extra $100 each month would shorten your loan by ten months and save you over $1,000 over the life of the loan. Also, if your interest is variable, you can save money by paying more while rates are lower.
The better your rating, the lower your interest is likely to be. The rock-bottom minimum rates like those displayed above are generally available to borrowers with excellent credit scores, which is only a small portion of the population. However, by doing simple things such as paying off your debts and lowering the limit on your credit cards, you can improve your score and, as a result, lower your potential interest rate.
A more long-term view of personal loans is that, in order to consistently keep your rates as low as possible, you should refinance to other loans with different lenders. For instance, if you’re midway through your $20,000, four-year loan at 9% p.a. and find another offer for 7%, you could save over $200 by switching to the other loan for the final two years. It’s always important to ensure that any fees associated with refinancing don’t negate the benefit of doing so altogether.
A simple switch you can make to save you some extra money on your loan is to make your repayments on a fortnightly basis, rather than monthly. This is because lenders count months as being four weeks, meaning that monthly repayments are only equal to 24 payments compared to a fortnightly schedule including 26. While it may only be worth a few hundred dollars, every little bit counts in the scheme of things.
Finally, above all else, the best way to save money is by comparing options in the market as comprehensively as you can. You’re unlikely to come across the cheapest and best personal loan for you with the first offer that you find, but you’re more likely to form an educated view of which is best when you understand the loan market.
Factors which can impact your borrowing personal loan borrowing power
Of course, the more you earn, the more you’re likely to be able to comfortably afford on a weekly, fortnightly or monthly basis. For instance, without taking expenses into account, someone earning $5,000 each month is more likely to be able to comfortably manage a loan with monthly repayments of $1,000 compared to someone earning $2,500 per month.
Common personal loan queries
More about personal loan repayments explained
How do I use the personal loan repayment calculator?
Savvy’s personal loan repayment calculator is simple and easy to use no matter where you are. All you need to do is fill out a few different boxes and the calculator will crunch all the numbers for you. By inputting your desired loan amount, term and an interest rate, you can calculate how much your weekly, fortnightly or monthly repayments would cost, as well as the total overall cost of the loan.
You can take the interest rates from different lenders and input them into the calculator to give you a rough comparison of what your loan might cost with a range of financiers. This can help you gain a greater understanding of the true difference between loans, rather than simply seeing a difference in interest rate. For example, a $30,000 loan repaid monthly over five years at 7.5% p.a. interest would cost you $6,068 overall but opting for a loan with a 6.5% p.a. rate instead would save you over $800.
When using the personal loan repayment calculator, though, it’s beneficial to input your lender’s comparison rate, rather than just their interest rate. This will give you a clearer, more accurate representation of the cost of different loans, as this rate also includes any fees which are charged. A loan might have a lower interest rate than another offer, but this counts for little if the fees charged on the agreement mean that you end up paying more overall, so comparison rates are always crucial to consider.
What are personal loans and how do they work?
A personal loan is a type of finance designed to be used for flexible purposes in your personal life. For example, you might want to take out a loan to cover the cost of medical expenses, help you pay for other bills over the next month or two or even aid you in planning your dream wedding. Unlike other finance such as home and car loans which are required to be used for the purchase of a particular asset, personal loans can essentially be used however you like.
In most cases, these loans are unsecured, meaning you won’t be required to put any collateral up as security for the agreement. However, there are secured personal loans available, which you might look to if you wanted to expand your borrowing power. Aside from this, though, they’re largely structured in the same way as any other similar finance agreement: you apply and (if approved) receive a lump sum from a lender, which you then repay with interest and fees over a set term either weekly, fortnightly or monthly.
Once you’ve paid off the entirety of your loan, you’ll be released from the agreement. If you took out a secured personal loan, the asset you used as collateral (such as your car) will also be lifted once you complete your repayments. Paying off a personal loan successfully can also help you get approved for better finance deals in the future, as lenders look for applicants who have demonstrated the ability to pay off similar debts in the past. Doing so in a timely fashion can also boost your credit score.
How do I compare personal loans?
When it comes to finding the best personal loan, there’s a range of different factors which you should take into consideration. By comparing each of the following variables, you can maximise your chances of securing the best personal loan for your needs. The factors to account for when deciding on your personal loan include:
Perhaps the most important area to consider when comparing different loan offers is their interest rates. This will form the most substantial cost over the course of your agreement in most cases, typically costing thousands of dollars overall. It’s for this reason that it’s crucial to compare: even small differences in rates can result in substantial savings throughout your agreement. For instance, while a $30,000 loan over five years at 8.5% p.a. would cost $6,930 in interest, choosing a loan with 7.5% p.a. interest instead would save you almost $900 overall.
It isn’t just interest which you’ll need to keep an eye on when comparing offers, though, but fees as well. The two main costs to consider here are establishment and ongoing fees. Your one-off establishment fee can cost up to $595 and ongoing costs can set you back up to $10 each month. However, many lenders choose not to charge one or both costs, so you could potentially save hundreds by choosing the right loan. You can compare based on comparison rates, which is a figure that incorporates both the interest and fees on your loan.
You’ll also need to make sure the amount you’re applying to borrow is offered by your lender. This is especially true of those looking to take out particularly small or large loans, as lenders will enforce different minimums and maximums. While you can take out a loan as small as $2,000, some lenders will require you to apply for a minimum of $5,000. Similarly, not all lenders can accommodate applications of $75,000, with many setting their maximum at $50,000. Make sure your lender can approve an application for the loan funds you need before you commence the process.
The same applies to personal loan repayment terms. As mentioned, you should always prioritise your comfort in repaying your personal loan, so it’s important to look for lenders who enable you to borrow over your preferred term length. If you want to have your repayments completed in just one to two years, keep your eye out for lenders who set their minimum terms lower, as some require you to take a minimum of three years regardless of your loan size. Many lenders will cap their maximum terms at five years also, meaning you may not be able to repay over the full seven.
There’s little point in preparing an application with a lender whose criteria you don’t quite meet. Before you consider gathering all your documents and filling out your form, it’s crucial to double-check each qualification point to ensure you’re able to be approved. Although criteria will vary slightly depending on who you decide to apply with, you’ll need to meet the following basic points:
- You must be at least 18 years old
- You must be a citizen, permanent resident or eligible visa holder
- You must be employed and earning a stable income of at least $20,000 per year
- You must have a good credit record with no history of defaults or bankruptcy
One of the biggest advantages of a personal loan is the ability it provides you to make repayments above the minimum required amount. By making additional payments towards your outstanding loan debt, you can save money on interest and fees across your term and shorten your repayment period overall. For example, by paying an extra $100 per month on a $50,000 loan over five years at 8% p.a., you can save over $1,200 and six months. Not all lenders will offer this on their loans, though, so it’s important to compare offers so you can find one which can offer you the freedom to make faster repayments.
Finally, you might also look to secure a loan which comes with other added features, such as a redraw facility or the option to choose your payment schedule. A redraw facility provides access to any additional payments made during your loan term, giving you a cheaper and hassle-free alternative to applying for another loan down the line. Of course, accessing funds in this manner could result in your loan costing more or taking longer to be repaid. You should also ensure you can choose between weekly, fortnightly or monthly repayments in line with your preference.
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.