Finance & business New Zealand
Loan Comparison Calculator New Zealand
The loan with the lowest rate is not always the cheapest once fees and terms are counted. Enter two loan offers and the calculator shows each repayment, the interest and fees, the total cost over the life of each loan and which one costs less.
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Cheaper loan
—Repayment A
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Repayment B
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Total cost A
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Total cost B
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Difference
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Side by side
An estimate, not advice. General information and estimates only, not financial advice. Rates, fees and rules change, so check the lender's own terms and speak to a licensed adviser before you act.
How do I compare two loans?
Work out the total you will pay on each: repayments plus fees. On a $30,000 loan, A at 8.5% over 5 years with a $350 fee costs $37,280 in all, while B at 7.9% over 7 years with a $10 monthly fee costs $39,992. Loan A is cheaper by $2,712, even though B has the lower rate.
Comparing like with like
Loans with different terms are hard to compare by repayment alone. A longer loan has a smaller repayment but costs more in total, and a shorter loan costs less overall but has a bigger payment. Compare both the repayment you can afford and the total cost.
Fees count too: an upfront fee is paid once, a monthly fee runs for the whole term, and both add to the total.
Other terms to check
Look at whether you can repay early without a fee, whether the rate is fixed or variable, and whether insurance or other products are bundled in. The regulator for credit in New Zealand is the Commerce Commission.
To test one loan in detail, use the personal loan calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
repayment = amount × r ÷ (1 − (1 + r)^−n), with r = rate ÷ 12total repaid = repayment × number of monthstotal cost = total repaid + upfront fee + monthly fee × monthsinterest = total repaid − amount borroweddifference = total cost of A − total cost of B
A lower repayment often means a longer term, and a longer term means more total interest. That is why this tool compares the total cost rather than the monthly figure. It treats the loans as fixed-rate with level repayments, so it will not capture rate rises on a variable loan.
In New Zealand, lenders must give you disclosure showing the total amount you will repay and the fees, so compare the total repayable on each offer over the same period rather than just the headline rate.
A worked example
$30,000 borrowed. A: 8.5% over 5 years with a $350 fee. B: 7.9% over 7 years with a $10 monthly fee.
- Repayment A$615.50
- Repayment B$466.09
- Total cost A$37,280
- Total cost B$39,992
- Difference$2,712
Loan A is cheaper by $2,712.
Equal terms would give a fairer comparison of the rates alone.
Using the result
If one loan is cheaper but has a higher repayment, check you can afford it in a tight month. If two loans are close, pick the one with better flexibility, such as free extra repayments.
What it leaves out
Variable rate changes, early repayment fees and insurance are not modelled. Both loans are assumed to borrow the same amount.
What this calculator does not do
- Fixed rates, level repayments
- Same amount for both loans
- No early repayment fees
- An estimate, not advice
Common questions
Is the lower rate always cheaper?
No. Fees and the term can reverse it.
Why does a longer term cost more?
Interest is charged for more months.
What fees should I include?
Upfront, monthly and any annual fees.
Can I compare variable loans?
Only for the current rate.
What should I check besides cost?
Early repayment terms and flexibility.
Where these numbers come from
- Sorted — Retirement Commission money guidance Independent guidance on borrowing, saving and debt
Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.
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