Our Expert says
The Rate You See Is Rarely the Rate You Get
Advertised rates like "from 1.08% p.a." are best case scenarios for top tier applicants with excellent credit scores, high income and existing relationships with the bank.
Most borrowers receive rates of 5% to 12% EIR depending on their credit profile. When using this calculator, run scenarios at multiple rates, the advertised rate, a mid-range estimate 7% to 8% EIR) and a conservative estimate 10% to 12% EIR) to understand the realistic range of monthly repayments before applying. 
How Tenure Affects Total Cost
The same loan can cost vastly different amounts depending on repayment period.
| Loan Amount | 2 Years (EIR 8%) | 3 Years (EIR 8%) | 5 Years (EIR 8%) |
|---|---|---|---|
| $10,000 | $453 per month = $872 interest | $313 per month = $1,268 interest | $203 per month = $2,180 interest |
| $20,000 | $905 per month = $1,720 interest | $626 per month = $2,536 interest | $406 per month = $4,360 interest |
| $30,000 | $1,358 per month = $2,592 interest | $939 per month = $3,804 interest | $608 per month = $6,480 interest |
| $50,000 | $2,263 per month = $4,312 interest | $1,565 per month = $6,340 interest | $1,014 per month = $10,840 interest |
A $30,000 loan over 5 years costs $6,480 in interest nearly double the $3,804 interest on a 3 year loan. When to Use This Calculator
What This Calculator Helps With
Compare loan amounts
See how borrowing $20,000 vs $30,000 affects monthly payments
Compare tenures
Understand the trade-off between lower monthly payments and total interest cost
Budget planning
Check if the monthly repayment fits within your budget before applying
Rate scenarios
Test different interest rates to prepare for actual loan offers
What This Calculator Does NOT Do
Guarantee approval or actual rates offered
Factor in processing fees or insurance (if any)
Account for early repayment or lump sum payments
Replace official loan quotes from banks
