Personal loan comparison

Personal Loan Fixed vs Variable Calculator

Compare fixed and variable personal loan rates side by side — see monthly payments, total interest, and total cost. Helps you pick certainty vs potential savings.

Side-by-side Rate stress test
01INPUTS

Total amount you want to borrow.

Fixed interest rate for the full term.

Variable rate — can change over the loan term.

Most personal loans run 1–7 years.

02RESULTS

Fixed Rate

Monthly repayment

415.17

Total interest

4,910.03

Total cost

24,910.03

Variable Rate

Monthly repayment

424.94

Total interest

5,496.45

Total cost

25,496.45

Difference Summary

Monthly payment difference−9.77
Total interest difference−586.43
Total cost difference−586.43

The fixed rate option costs less overall based on the rates entered. Variable rates can change during the loan term.

How to choose

When choosing between a fixed and variable personal loan, the key trade-off is certainty vs potential savings. A fixed rate locks in your repayment for the full term — you know exactly what you'll pay each month. A variable rate can go up or down, so you might save money if rates fall but pay more if they rise.

The calculator shows both scenarios side by side and highlights the difference. If the variable rate is lower today, it's likely the cheaper option — but you should also model a few rate-rise scenarios to see how sensitive your budget is to changes.

For more detail on either option, use the personal loan repayment calculator to model each rate separately.

Common questions
Fixed vs variable personal loan — which is better?
Neither is universally better — it depends on your priorities. A fixed-rate loan gives you certainty: the same repayment every month for the full term. A variable-rate loan can save you money if rates fall, but your repayments can increase if rates rise. If you value predictable budgeting, go fixed. If you can handle some uncertainty and want potential savings, go variable.
Can I switch from a fixed to variable personal loan later?
Some lenders allow you to switch during the loan term, but fixed-rate loans often have break fees if you exit early. Variable loans usually don't. If you think you might refinance or pay off the loan early, a variable rate gives you more flexibility.
What happens if variable rates change during my loan?
If the Reserve Bank of Australia changes the cash rate, variable personal loan rates usually move with it. Your monthly repayment goes up if rates rise and down if they fall. Use the calculator to model a few rate scenarios — try the variable rate 1–2% higher than today to stress-test your budget.

Last updated 24 May 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Reviewed by AusTax Tools Editorial Desk

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