Personal Loan Calculator

NZ personal loans use a fixed or variable annual interest rate applied to the reducing balance. Each monthly repayment covers the interest accrued that month plus part of the principal. As the balance reduces, the interest portion shrinks and the principal portion grows — a standard amortising loan. The rate you qualify for depends on your credit score, security, and the lender.

The advertised rate is interest only. The comparison rate (or effective annual rate) folds in establishment fees, monthly account-keeping fees and annual fees into a single percentage — showing the true cost. Under the CCCFA, NZ lenders must disclose both. A loan with a low advertised rate but high fees can have a much higher comparison rate.

An establishment fee ($150–$500 for personal loans) is the upfront charge for setting up the loan. If added to the loan balance, you pay interest on it for the full term — a $250 fee at 13% over 5 years adds roughly $85 in extra interest. Ongoing monthly fees ($5–$15/month) also compound the cost. Always compare total cost, not just the monthly payment.

A longer term lowers your monthly payment but increases total interest significantly. A $10,000 loan at 13% over 3 years costs about $2,160 in interest; over 5 years it rises to $3,700. The tradeoff is monthly affordability vs total cost. Use the term selector above to compare — watch the total interest and total cost figures change.

A secured loan is backed by an asset (typically a car) that the lender can repossess if you default — rates are lower, often 8%–13%. An unsecured loan has no asset backing, so rates are higher — typically 13%–25%. Approval for unsecured loans depends more on your credit score and income. This calculator works for both — just adjust the rate to match your offer.