What is a comparison rate on a home loan?

A comparison rate is a single annual percentage that combines the advertised interest rate with most standard fees and charges so you can compare home loans on a more realistic cost basis, not just the headline rate.

Does comparison rate include all fees?

No. It typically includes common, mandatory fees that apply to all borrowers on that product, but it may not include government charges, optional extras or some conditional fees. Always check the assumptions attached to any published comparison rate.

Why is the comparison rate higher than the advertised rate?

Because fees and charges add to the true cost of the loan. When those costs are expressed as part of a single annual percentage, the number usually ends up higher than the headline rate.

Can a loan with a higher interest rate have a lower comparison rate?

Yes. A slightly higher rate with low or no fees can produce a lower comparison rate than a cheaper-looking rate attached to heavy ongoing fees. That is one of the main reasons comparison rate exists.

Does comparison rate tell me what my repayments will be?

Not directly. It gives a cost signal, not a repayment schedule. You still need a repayment calculator to estimate weekly, fortnightly or monthly repayments for your specific loan amount and term.

Is comparison rate always based on the same loan amount and term?

Lenders must publish comparison rates using specified standard amounts and terms (in Australia, $150,000 over 25 years), but assumptions can differ by product. This calculator lets you set your own amount and term for planning, which is why your result may differ from a lender's published figure.

Why is my comparison rate different from the lender's?

Because this tool uses your chosen loan amount, term, rate and fees to create a planning estimate, while lenders calculate their published comparison rate under fixed regulatory assumptions. It is normal for the two numbers to differ slightly.

How does comparison rate relate to fixed periods or introductory discounts?

For fixed or introductory loans, comparison rate blends the cheaper period with assumptions about what happens when the rate reverts, as well as fees. That is why an ultra-low intro rate can still sit next to a comparison rate that looks far less impressive.

Is comparison rate enough to choose the best home loan?

No. It is a powerful filter but not the whole decision. You still need to consider features (offset, redraw, flexibility), fixed vs variable structure, your likely behaviour, and how the repayments actually feel in your budget.

Do fixed and variable loans handle comparison rate differently?

The concept is the same, but different fee profiles, fixed-term conditions and break-cost risks can all influence what the comparison rate does — and what it fails to show. That is why you should never rely on comparison rate alone.

Can comparison rates change over time?

They can. If a lender adjusts fees, product structure or pricing, the comparison rate may change even if the headline rate does not.

What should I do after using a comparison rate calculator?

Use it to narrow your shortlist to loans that behave well on cost, then move into repayment modelling, borrowing-power checks, refinance scenarios and feature comparison before you commit.

Comparison Rate Calculator Australia

Advertised rates are what lenders use to flirt. Comparison rates are what they have to show you when the lights come on. Pull fees and basic charges into the picture so you can see how a "cheap" loan actually behaves once the marketing gloss is removed.

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Compare 100+ Lenders

Up to 4 Loans Side-by-Side

Your Own Loan Size

Who this calculator is for

Borrowers comparing multiple home loans that all claim to have "sharp" rates.
First home buyers trying to understand why some loans look cheap on the surface and less friendly once fees appear.
Refinancers weighing small rate differences and wanting to know whether the cheaper-looking option actually costs less.
Anyone tired of feeling tricked by loans that hide cost behind low headline rates and busy fee structures.

What it calculates

An estimated comparison rate for each home loan based on the advertised rate, term, amount and fees.
A single annual percentage that reflects interest plus most compulsory fees in a comparable way.
A more realistic basis for comparing loans with different combinations of rates and fee structures.
Side-by-side ranking so the loan with the lowest true cost is obvious at a glance.

Why it matters

A loan with the lowest headline rate can still be more expensive if the fee structure is obnoxious. Comparison rate gives you a cleaner "apples with apples" view when you're shortlisting mortgages. Relying on advertised rates alone is exactly how polished lender theatre earns its keep.

Loan basis

Loan amount$700,000

Australia's mandated comparison rate uses $150,000 over 25 years — your real loan size can give a very different result.

Loan term30 years

Advertised rate5.49%

Upfront / establishment fee

Monthly ongoing fee

Annual / package fee

Advertised rate5.69%

Upfront / establishment fee

Monthly ongoing fee

Annual / package fee

Advertised rate5.39%

Upfront / establishment fee

Monthly ongoing fee

Annual / package fee

Comparison rate results

Loan	Advertised	Comparison rate	Monthly repayment	Total fees	Verdict
Loan CBEST	5.39%	5.47%	$3,926	$12,650	Moderate fees
Loan A	5.49%	5.52%	$3,970	$3,480	Low fees
Loan B	5.69%	5.69%	$4,058	$0	Low fees

Guide only. Excludes government charges, optional extras, break costs and future fee changes. May differ from a lender's published comparison rate.

Shortlist sorted. Now check the rate a real lender would offer you.

Comparison rate filters out the loans hiding cost in fees. LoanGorilla shows you the actual rate a lender will offer based on your borrower profile, not a brochure.

Compare home loans Test repayments on this loan →

How this Comparison Rate Calculator works

A Comparison Rate Calculator estimates a comparison rate by combining the advertised interest rate with standard fees and costs, then expressing that combined cost as a single annual percentage over a chosen term and amount. In plain language, it answers: "If this loan's interest and standard fees were rolled together into one number, what rate would that look like?"

This calculator uses the loan amount, term, headline rate and the fees you specify to estimate that combined cost. It does not claim to replicate every lender's internal formula; it mirrors the same logic: fees are part of the price, not just decorations. The goal is not to achieve mathematical perfection down to the last cent. The goal is to stop you judging a low-rate/high-fee loan against a higher-rate/low-fee loan purely on the headline rate, which is the comparison equivalent of comparing two cars by paint colour alone.

This Comparison Rate Calculator is a planning tool, not a product disclosure statement. It:

Assumes a standard principal-and-interest structure over the term you enter.
Uses the rate, loan amount, term and fees you enter to estimate an indicative comparison rate.
Does not know every individual lender's exact comparison-rate formula or standardised assumptions.
May differ from a lender's published comparison rate, which is calculated under regulated assumptions for a specific loan amount and term.

What comparison rate does — and doesn't — include

Generally included

Advertised interest rate, standard upfront fees (application/establishment), standard ongoing fees (monthly, annual, package), and other compulsory product-level fees.

Generally not included

Government charges and duties, break costs on fixed loans, optional extras (offset on some products, pro-packs), promotional cashback, and future changes to rates, fees or your usage.

Why it still matters

Comparison rate is a powerful filter that exposes when a 'cheap' loan is hiding cost in fees — but it isn't the entire decision, especially on features and structure.

How to interpret your results

The healthiest way to read a comparison rate is as a filter, not as a final verdict.

Tame fees. If the comparison rate is only slightly higher than the advertised rate, the fee structure is probably relatively benign.
Fees doing real work. If the comparison rate jumps well above the headline rate, fees and standard charges are doing serious work in the background.
Similar comparison rates. If two loans land close to each other on comparison rate, cost differences alone aren't the deciding factor — features, flexibility and structure should matter more.

At the edges, context matters. On very small loans, a fixed application fee can make the comparison rate look ugly even though the absolute dollar cost is still manageable. On very large loans, that same fee barely moves the needle, so you must pay more attention to features and long-term rate behaviour. Comparison rate is there to help you spot when a "cheap" loan is really just a magician's trick — it's not a substitute for checking features or thinking about how you'll actually use the loan.

How to find repayments that fit your budget

Comparison rate helps you decide which loans deserve to be taken seriously. It does not tell you whether you can comfortably live with the repayments. Once you've used comparison rate to weed out the nonsense, you should:

Use the Borrowing Power Calculator if you're still working out your realistic loan range.
Put each shortlisted loan through the Home Loan Repayment Calculator to see what it does to your weekly, fortnightly or monthly budget.
Use extras and offset modelling if you plan to pay the loan down aggressively or keep a buffer in an offset account.
If you already have a mortgage, use the Refinance Calculator to compare your current loan with any new contender.

The adult sequence is: shortlist using comparison rate, test affordability and behaviour, then choose a structure that still makes sense when life stops co-operating. The childish sequence is: see a low rate, scroll past the fees, then act surprised when the mortgage feels heavier than the marketing. LoanGorilla exists to keep you out of the second one.

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Calculator assumptions

This calculator estimates a comparison rate by solving for the effective monthly rate that equates the net loan amount (loan principal less upfront fees) with the present value of all scheduled monthly repayments plus monthly and annual fees over the chosen term — then annualises that result. It assumes a standard principal-and-interest structure over the entered term and that all entered fees apply for the life of the loan. It does not include government charges, break costs on fixed loans, optional features (offset, pro-packs), promotional cashback or future changes to rates or fees. Results may differ from a lender's published comparison rate, which is calculated under regulated assumptions ($150,000 over 25 years in Australia). The calculator does not constitute financial advice. Reviewed by the LoanGorilla editorial team — last updated May 2026.

Comparison Rate Calculator FAQs

Credit information: LoanGorilla is a credit assistance provider. Information on this page is general in nature and does not constitute financial or credit advice. Consider whether any home loan product is appropriate for your circumstances. We recommend seeking independent financial and legal advice before making borrowing decisions.

Comparison rate warning: Comparison rates are based on a secured loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different loan amounts, loan terms or fees may result in a different comparison rate. Rates are subject to change without notice.