Most people will be familiar with what an interest rate is. However, there can be differences in fees and charges which impact the actual cost of a loan.
Add to this that you may be considering a loan with an introductory interest rate and comparing the real cost of a loan product can become quite confusing.
That’s where the Comparison Rate comes in. A Comparison Rate takes into account those additional costs, and adds them proportionally to the standard interest rate. This produces a more accurate representation of the cost of different loan products. Use the calculator below to see how fees and introductory rates impact your Comparison Rate.