Loan Comparison Calculator

How to compare two loans properly

It puts two loans side by side on the same terms, so you are comparing like with like rather than comparing two marketing pages.

Enter the amount, the interest rate, the term and any upfront fee for each loan. The calculator returns the repayment, the total interest, the total fees and the total amount repaid for both, and shows you the difference. That last figure is the one worth looking at. Lenders advertise the repayment because it is the smallest, friendliest number in the arrangement. It is also the number that gets smaller the longer you borrow for, which means the loan that looks most affordable on a monthly basis is frequently the one that costs the most by the end. Comparing totals removes that illusion. Two other things this makes visible. An upfront fee changes the picture more than people expect on a short loan, because you are paying it once regardless of how quickly you clear the balance. And a lower rate over a longer term routinely loses to a higher rate over a shorter one.

Lower total cost

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Enter both loans to compare.

Loan A

$0 /mo

Interest$0

Fees$0

Total cost$0

Loan B

$0 /mo

Interest$0

Fees$0

Total cost$0

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This calculator is a guide only and does not constitute a quote, an offer of credit, or financial advice. It estimates repayments on a reducing balance and adds any fees you enter (as a dollar amount or a percentage of the loan) to the total cost; it does not capture every fee, charge or feature a lender may apply. Results depend on the figures and assumptions you enter — the fees, charges and the way interest is calculated are set by each lender's contract, which prevails and may differ from this estimate. A lower total cost often means higher monthly repayments over a shorter term. Compare the full terms of each loan and seek independent advice if needed.

What a comparison rate is, and what it is not

A comparison rate is a single figure that folds interest and fees together so that two loans can be lined up against each other. It is genuinely useful, and it is routinely misread.

The interest rate alone does not tell you what a loan costs, because fees sit outside it. A loan with a low advertised rate and a large establishment fee can cost more than one with a higher rate and no fee. The comparison rate closes that gap and gives you a single number to rank lenders by. Here is the part that gets missed: it is calculated on a standardised example and is only true for that example. The Beforepay Personal Loan comparison rate is 29.50% p.a., calculated on the example set out in the product disclosure. Change the amount or the term and it changes too. So use it to compare lenders on a common basis, not to work out what you personally will repay, because the figure that governs that is in your loan contract. One more limit: fees that only apply in certain circumstances usually sit outside the calculation, so two loans with the same comparison rate can still behave differently if something goes wrong.

How Beforepay compares, in plain figures

Here are the numbers to put into the calculator if you want to compare a Beforepay product against an offer you have in front of you.

A Beforepay Personal Loan covers $2,001 to $5,000 over 3 to 12 months, with a fixed 5% setup fee and interest of up to 24% p.a. The published comparison rate is 29.50% p.a., true only for the standardised example it is calculated on. Pay Advance is designed to bridge the gap until payday, covering $50 to $2,000 over a term of up to 62 days, repaid in up to 4 instalments aligned to your pay cycle, with the same 5% fee and the same maximum rate. Neither product charges late fees or early repayment fees, and neither involves a traditional credit check through a credit bureau, though your circumstances are assessed either way. Two notes on comparing fairly. Under $2,001, comparing Personal Loans is the wrong exercise. And against a payday lender, look at the fee structure rather than the headline rate, because that is usually where the cost sits.

What comparing on paper leaves out

Two loans can look identical in a table and behave very differently in practice.

It cannot tell you what either lender will actually offer you. Advertised rates are usually maximums or representative figures, and the rate you are offered comes out of an assessment of your circumstances. Compare the offers you have received, not the rates you have seen advertised. It cannot tell you how a lender behaves when things go wrong. Whether hardship support is easy to access, how quickly someone answers, what happens if your pay lands late: none of that appears in a rate. It is worth more than a few tenths of a percent. It cannot tell you whether to borrow at all. If both loans look tight against your income, the answer the calculator is quietly giving you is neither. It cannot account for fees it has not been told about. Read the schedule of fees for any loan you are seriously considering, and put every fee you find into the comparison.

OUR LOANS

Find a loan that fits

Beforepay has a loan to suit almost any occasion, whether you need a little extra for a sudden expense or are planning for something bigger.

SHORT TERM

Beforepay Pay Advance

Need cash before payday? Get money in your account in as little as 5 minutes.

Borrow $50–$2,000†

Repay within 62 days

Approved in under 60 seconds

BEST FOR

Covering unexpected bills, rent shortfalls, or bridging the gap until your next paycheck.

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LONG TERM

Beforepay Personal Loan

Larger expenses on the horizon? Get bigger amounts and longer to repay with Personal Loan.

Borrow $2,001–$5,000†

3-12 month terms§

Competitive interest rate‡

No hidden fees ever

BEST FOR

Car repairs, medical bills, moving costs, travel, or any larger purchases you want to pay off over time.

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How it works

A fast loan is only 3 steps away.

Create your account

Getting started is simple - sign up online or download the Beforepay app.

Connect your bank

Connect your bank account to explore your loan options or use Beforepay's money tools.

Choose your loan

Borrow up to $2,000 with Pay Advance or apply for a Personal Loan of up to $5,000. Eligibility criteria applies.

Create your account

Getting started is simple - sign up online or download the Beforepay app.

Connect your bank

Connect your bank account to explore your loan options or use Beforepay's money tools.

Choose your loan

Borrow up to $2,000 with Pay Advance or apply for a Personal Loan of up to $5,000. Eligibility criteria applies.

ACTUAL REAL PEOPLE

FAQs

Everything you need to know.

What is a comparison rate?

A single percentage that combines the interest rate and standard fees on a loan, so you can compare lenders on a common basis. It is calculated on a standardised example and is only true for that example.

Why is the comparison rate higher than the interest rate?

Because it includes fees that the interest rate leaves out. A gap between the two is normal and reflects the cost of the fees, not an error.

Should I choose the loan with the lowest repayment?

Not necessarily. A lower repayment often means a longer term, and a longer term usually means more interest in total. Compare the total amount repaid as well as the repayment.

Does comparing loans affect my credit score?

Beforepay does not run a traditional credit check through a credit bureau, and applying will not affect your credit score. Other lenders vary, and some record an enquiry, so check before applying to several at once.

What fees should I look for when comparing loans?

Establishment or setup fees, ongoing account fees, fees that apply if a repayment is missed, and any charge for paying the loan out early. Beforepay charges neither a late fee nor an early repayment fee, but plenty of lenders charge both, so check the schedule of fees before you commit.

Applications are typically approved in under 60 seconds, though some applications may require additional review.

† Approved loan amounts are subject to Beforepay’s lending criteria and verification requirements.

‡ Comparison rate calculated on a $2,500 loan over a 2-year term.

‡ WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or loan amounts may result in a different comparison rate.

Terms and conditions apply. All applications are subject to credit assessment, eligibility criteria and lending limits. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. BPG Credit Pty Ltd, ABN 59 673 570 575, Australian Credit Licence 554659, is the credit provider for Beforepay Personal Loans. Beforepay Pay Advance is offered by Beforepay Finance Pty Ltd, ABN 45 636 670 525. Both entities are subsidiaries of Beforepay Group Limited, ABN 63 633 925 505. Level 9, Suite 1, 77 Castlereagh Street, Sydney NSW 2000. Beforepay Group Limited and its Beforepay goods and services are in no way sponsored, approved or affiliated with Quadpay Inc., Openpay Pty Ltd, Afterpay Pty Ltd, ZipMoney Payments Pty Ltd and their associated entities/affiliated companies. Bank logos and trademarks are the property of their respective owners and are used for identification purposes only. No endorsement or affiliation is implied.

How to compare two loans properly