Continue your simulation with a CommBank personal loan repayment calculator that includes every fee, not only the advertised interest rate.
Many repayment calculators show only principal and interest, which makes loans look cheaper than they really are. CommBank charges an establishment fee and a monthly loan service fee on its unsecured personal loans, and both affect what you actually pay. This guide shows how to include them, how they change the comparison rate and how loan size alters their impact.
Short answer: on a $10,000 loan over five years at 9% a year, the repayment is about $208 a month before fees. Adding the $15 monthly service fee brings the outgoing to about $223, and the $250 establishment fee adds a further upfront cost. Together these fees raise the effective annual cost from 9% to roughly 13% in this example.
Fees matter more on small loans because they are fixed amounts. The same $250 and $15 a month are a far larger share of a $5,000 loan than of a $20,000 loan. That is why Australian lenders must publish a comparison rate, which combines interest and most fees into a single figure based on a standard loan amount and term.
CommBank sometimes waives the establishment fee during promotional periods for loans funded within a set window. If you are planning a purchase, checking whether a promotion is running can save money. The monthly service fee usually still applies, so include it in your calculation even when the upfront fee has been removed.
Below you will find a step-by-step method for including fees, tables showing the effective cost at different loan sizes and terms, a comparison of fixed and variable loans, tips for reducing total cost, frequent mistakes and answers to common questions. Rates and fees are illustrative, so confirm the current figures on the CommBank website before deciding.
Step-by-step: adding fees to the calculation
- Calculate the monthly repayment from amount, rate and term.
- Add the monthly loan service fee to get the real monthly outgoing.
- Multiply by the number of months to find the total of payments.
- Add the establishment fee if you pay it upfront or include it in the loan.
- Subtract the amount borrowed to find the true total cost.
This method gives a total cost in dollars, which is easier to compare than percentages. Using the example above, the total cost of the $10,000 loan over five years at 9% is roughly $2,455 in interest plus $900 in monthly fees and $250 upfront, a total of about $3,605. That is the figure to compare with other offers.
How loan size changes the effective cost
| Amount over 5 years at 9% | Monthly including $15 fee | Effective annual cost |
|---|---|---|
| $5,000 | $119 | About 17.3% |
| $10,000 | $223 | About 13.1% |
| $20,000 | $430 | About 11.1% |
The effective annual cost treats the establishment fee as reducing the money you receive and adds the monthly fee to each payment. The smaller the loan, the bigger the gap between the headline rate and the real cost. For small sums, a lender without monthly fees can be cheaper even if its advertised rate is higher.
Term length and fees
A longer term means more monthly service fees. On the $10,000 loan at 9%, a three-year term gives a repayment of about $318 a month and interest of around $1,450, plus $540 in monthly fees. The five-year term has a lower payment but $900 in fees and more interest, so the shorter loan is cheaper overall.
| Term for $10,000 at 9% | Monthly including fee | Interest | Service fees | Total cost with $250 fee |
|---|---|---|---|---|
| 3 years | $333 | $1,448 | $540 | $2,238 |
| 5 years | $223 | $2,455 | $900 | $3,605 |
Fixed or variable rate loans
CommBank offers both. The fixed loan locks in your repayment, which makes budgeting simple. The variable loan rate can rise or fall, but it usually allows extra repayments and early payout without break costs. When you calculate a variable loan, test a rate one or two points higher than today to see how a rise would affect you.
Ways to reduce the total cost
- Apply during a promotion that waives the establishment fee.
- Choose the shortest term you can comfortably afford.
- Make extra repayments on a variable loan where there is no break cost.
- Improve your credit file first to qualify for a lower personal rate.
- Compare with lenders that charge no monthly fees, especially for small amounts.
The comparison rate explained
In Australia, lenders must show a comparison rate alongside the interest rate in advertising. It is calculated on a standard example, often $30,000 over five years for unsecured loans, and includes most fees. Because your loan may be smaller or shorter, your real cost can differ from the comparison rate. Always calculate using your own amount and term.
Common mistakes
- Forgetting the monthly service fee entirely.
- Comparing only interest rates between lenders with different fees.
- Assuming a variable rate will stay the same for the whole term.
- Choosing the longest term to minimise the payment without checking total cost.
Worked example: buying a used car
Josh wants to borrow $12,000 for a used car and is choosing between a five-year and a four-year term at a fixed 9.5% rate. The five-year loan costs about $252 a month plus the $15 fee, while the four-year option costs about $301 plus the fee. The shorter term saves roughly $650 in interest and $180 in service fees.
He checks his budget and finds that the higher payment still leaves a comfortable buffer, so he chooses four years. He also asks whether an establishment fee waiver is running, which would save a further $250. For a car purchase, he compares the result with a secured car loan, which may offer a lower rate because the vehicle acts as security.
Secured versus unsecured loans
CommBank also offers secured car loans, where the vehicle is used as security. Secured loans often carry lower rates because the lender can repossess the car if payments stop. The trade-off is that the car must usually meet age and value conditions. For other purposes, such as travel or renovation, an unsecured loan is normally the only option.
Checking the calculation yourself
Use a spreadsheet to confirm any figure. Enter the annual rate divided by twelve, the number of months and the amount as a negative number in the PMT function. Add the monthly fee to the result. Multiply by the term and add the establishment fee to see the total cost. Repeat for each offer you are considering.
Keep a simple table with the lender, rate, fees, monthly outgoing and total cost for each option. Seeing the totals side by side often makes the best choice obvious and protects you from being swayed by a low headline rate that hides higher fees.
Do repayments change if I pay weekly?
Paying weekly or fortnightly can slightly reduce interest on a variable loan because the balance falls sooner. Check whether your loan allows it.
If you are unsure which term to choose, compare the extra monthly cost of the shorter loan with the total saving. When the saving is large and the extra payment fits your budget, the shorter term is usually the smarter choice.
Frequently asked questions
Can the establishment fee be added to the loan?
It is often included in the amount financed, which means you pay interest on it too.
Is there a fee for early repayment?
Variable loans usually have no break costs; fixed loans may. Check the current terms.
Conclusion
A useful CommBank personal loan repayment calculator must include the establishment and monthly fees. Compare total cost in dollars, test a few terms and confirm current rates and fees with CommBank before you apply.