Loan Comparison Calculator
Compare two loan quotes side by side, with their interest rate, term and fees, to see which costs less each month and in total.
Two loan quotes
Worked example
These are the calculator's starting values, so the results above match this example until you change an input.
Borrowing R 100 000: loan A at 22% over 60 months costs R 2 830,89 a month and R 171 060,97 in total. Loan B at 19.5% over 72 months costs R 2 435,39 a month and R 176 555,47 in total.
Loan A costs R 5 494,50 less in total, even though its rate is higher. Loan B's extra 12 months of interest and service fees outweigh its lower rate.
Compare the total cost, not just the rate
A lower interest rate does not always mean a cheaper loan. A longer term gives a smaller instalment, but you pay interest and the monthly service fee for more months. Fees matter too, especially on smaller loans. The fairest comparison is the total you will repay: every instalment plus all fees.
What South African lenders may charge
Under the National Credit Act, the interest rate on an unsecured personal loan is capped at the repo rate plus 21% a year. A lender may also charge a monthly service fee of up to R 69 including VAT, and a once-off initiation fee. For unsecured loans the initiation fee is at most R 165 plus 10% of the amount above R 1 000, up to R 1 050 before VAT (R 1 207,50 with VAT).
Many lenders add the initiation fee to the loan, so you also pay interest on it. This calculator counts it as a once-off cost, so the real difference between two quotes can be slightly larger.
Ask for the pre-agreement quote
Before you sign, a lender must give you a pre-agreement statement and quotation showing the rate, fees, instalment and total cost of credit. Enter the figures from each quote here to compare them on the same basis. Check whether credit life insurance is included as well: add the premium to the monthly fee to compare like with like.
Fee and rate limits from the National Credit Regulations, checked 13 October 2026; see the National Credit Regulator. Repayments use standard amortising loan maths with interest charged monthly. This page is general educational information, not financial advice.
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Open calculator →Frequently asked questions
Is a lower interest rate always better?
No. In the example above, loan A has the higher rate but costs about R 5 495 less in total, because loan B runs 12 months longer.
Should I choose a shorter loan term?
If you can afford the higher instalment, a shorter term usually costs less in total. A longer term only costs less each month.
What is the maximum initiation fee on a personal loan?
For unsecured credit, R 165 plus 10% of the amount above R 1 000, capped at R 1 050 before VAT (R 1 207,50 including VAT).
Can I compare loans with credit life insurance?
Yes. Add each loan's monthly insurance premium to its monthly fee so the totals compare like with like.