Over 30 years, it costs the same as a flat rate of
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Move a slider to see the difference.
Introductory rate–
Flat-rate equivalent, whole loan–
Rate after the intro period–
Principal & interest, monthly repayments, a 30-year term. When the introductory period ends the repayment is recalculated at the new rate over the years that remain, which is how Australian lenders do it, and the new rate is assumed to stay put after that. The flat-rate equivalent is the single rate that would charge the same total interest over the 30 years. It is not a comparison rate: it includes no fees. Neither figure depends on the loan amount, so the loan amount is not an input. Indicative only. Not financial advice.