Borrowing comparison calculator

What the result means

The cheaper monthly repayment is not always the cheaper loan. A shorter term costs more each month and usually less interest overall.

How it is calculated

Compare PMT and PMT × n for each loan using the standard amortising formula

• n: Number of monthly payments in each term.

Each loan is priced independently. The headline names whichever has the lower total repaid.

Worked example

30 years at 5.8% versus 25 years at 5.5%

Same $680,000 principal.

Look at monthly

The shorter term usually costs more per month

Look at total

The shorter, cheaper-rate loan often wins on total interest

Pick the metric you can actually pay: cashflow versus lifetime interest.

Features still matter

Offset, redraw, package fees and fixed-rate break costs can outweigh a 0.1% rate gap. This comparison is interest and principal only.

A shorter term almost always costs more per month and less in total interest. A 25-year loan at 5.5% can beat a 30-year loan at 5.8% on lifetime cost and still be the one a budget cannot service. Pick the metric you can actually pay, then read the features the rate card left out.

Questions