Continue your simulation with the Wisr comparison rate and learn how the application fee lifts the real cost above the interest rate.
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loan amount + interest
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interest rate of per month
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Illustrative amounts and interest rates. This is not a loan offer or credit approval.
Choose another amountAustralian lenders must show two percentages: the interest rate charged on the balance and a comparison rate that adds standard fees. In this guide you will learn how Wisr’s comparison rate is calculated, why it changes with the loan amount, how to compare it with other lenders and how to estimate your own effective rate for any amount.
Direct answer: the comparison rate combines the interest rate with standard fees, mainly the application fee, for a benchmark loan such as A$30,000 over five years. With a 9.5% rate and a fee of about A$600, the resulting comparison rate is roughly 10.3%, and it would be noticeably higher for a smaller loan repaid over a shorter term.
At the time of writing, published listings showed Wisr interest rates starting near 7.5% per year, with comparison rates about one percentage point higher at the bottom of the range. The application fee was reported at roughly A$600 depending on the product. Wisr states that it charges no ongoing monthly fees and no early repayment or exit fees.
Borrowers often treat the comparison rate as the exact cost of their own loan. It is not: it is calculated for a benchmark amount and term. If you borrow less, or for a shorter time, the fixed application fee represents a larger share of the loan, so your personal effective rate will be higher than the advertised comparison figure.
Next, you will see what the comparison rate includes and excludes, a worked calculation, how loan size changes it, tables of costs at different rates, a comparison with lenders that charge monthly fees, how to calculate your personal effective rate, mistakes to avoid and a checklist. Keep your Wisr estimate nearby to apply each step.
What the comparison rate includes
- The annual interest rate on the loan.
- The application or establishment fee.
- Ongoing fees charged by the lender, if any.
- A benchmark amount and term set by regulation.
What it leaves out
- Fees that depend on your behaviour, such as late or dishonour fees.
- Savings from fee waivers or promotions.
- Optional products such as insurance.
- The effect of extra repayments made during the term.
Because Wisr does not charge exit fees, extra repayments can reduce your real cost below the comparison rate. Conversely, a late payment adds costs the comparison rate does not show.
A worked calculation
Take A$30,000 at 9.5% over 60 months with a A$600 fee added. Using P·r/(1−(1+r)^−n) with P = A$30,600 and r = 0.0079, the repayment is about A$643. The effective rate is the rate at which A$30,000 received equals the present value of sixty payments of A$643, which works out at about 10.3%.
How loan size changes the result
| Loan at 9.5% with A$600 fee | Term | Approximate effective rate |
|---|---|---|
| A$10,000 | 3 years | about 13.5% |
| A$20,000 | 5 years | about 10.8% |
| A$30,000 | 5 years | about 10.3% |
| A$50,000 | 7 years | about 9.9% |
A small, short loan carries a much higher effective rate because the same fee is spread over fewer dollars and months. If you need a modest amount, compare Wisr with lenders that charge no upfront fee, even if their interest rate is a little higher.
Total cost at different interest rates
| Rate (A$30,600 over 5 years) | Monthly repayment | Total cost on A$30,000 |
|---|---|---|
| 7.5% | about A$613 | about A$6,790 |
| 12% | about A$681 | about A$10,840 |
| 18% | about A$777 | about A$16,620 |
| 25% | about A$898 | about A$23,890 |
The interest rate remains the main driver of cost. Moving from 18% to 12% saves about A$5,800 on this loan, far more than the application fee. Improving your credit profile before applying is the most effective way to reduce what you pay.
Comparing with monthly-fee lenders
Some lenders charge no application fee but add a monthly service fee. Over five years, a A$15 monthly fee totals A$900, more than Wisr’s application fee, and it continues until the loan ends. Comparison rates capture both structures, which is why they are useful for side-by-side comparisons at similar amounts and terms.
Calculating your personal effective rate
- Add the application fee to the amount you need.
- Calculate the repayment with your interest rate and term.
- Use a spreadsheet: RATE(months, −repayment, amount received) × 12.
- Compare the result with other offers for the same amount and term.
Using extra repayments to beat the comparison rate
Because there is no exit fee, paying an extra A$100 each month on the A$30,000 example shortens the loan by about ten months and reduces interest by roughly A$1,000. The effective rate on the money you borrowed stays the same, but the total dollars paid fall noticeably.
A two-lender comparison
Suppose you need A$12,000 over three years. Wisr offers 10.5% with a A$600 fee financed, giving a repayment of about A$410 and total cost of roughly A$2,750 on the cash received. Another lender offers 12% with no upfront fee but a A$10 monthly fee, giving about A$409 per month including the fee and total cost of roughly A$2,710.
The two offers are almost identical in cost. In this case flexibility decides: Wisr’s absence of exit fees means that if you repay a year early, you avoid twelve months of interest, while the other lender would also stop charging its monthly fee. Look at the contract terms for extra repayments before choosing.
| Item | Wisr example | Monthly-fee lender |
|---|---|---|
| Rate | 10.5% | 12% |
| Fee | A$600 upfront | A$10 per month |
| Monthly outlay | about A$410 | about A$409 |
| Total cost | about A$2,750 | about A$2,710 |
Reading the comparison rate warning
Australian advertisements must include a warning that the comparison rate applies only to the example given and that different amounts and terms will result in different comparison rates. This warning is a reminder to calculate your own figure rather than rely on the advertised one, especially if your loan is much smaller or shorter than the benchmark.
How credit profile affects both rates
Your personalised interest rate moves your comparison rate one for one, because the fee is fixed. A borrower offered 18% instead of 9.5% sees the comparison rate rise to roughly 18.9% on the benchmark loan. Working on your credit file before applying therefore changes both figures, and it remains the most powerful lever on cost.
Mistakes to avoid
- Treating the comparison rate as your exact cost.
- Comparing a comparison rate with another lender’s interest rate.
- Ignoring the size of your loan relative to the benchmark.
- Forgetting that late fees are not included.
- Overlooking the benefit of no exit fees.
Summary: using the Wisr comparison rate
The comparison rate combines interest and fees for a benchmark loan. Use it to compare lenders, then calculate your own effective rate for the exact amount and term you need.
- It includes the application fee.
- It excludes behaviour-based fees.
- Smaller loans have higher effective rates.
- The interest rate still drives most of the cost.
- Extra repayments reduce total dollars paid.
Frequently asked questions
Why is the comparison rate higher than the interest rate?
Because it includes the application fee spread across the loan.
Does Wisr charge monthly fees?
Wisr states that it charges no ongoing monthly fees on its personal loans.
Is the comparison rate the same for every loan?
No, it is calculated for a benchmark amount and term, so your own effective rate may differ.
Conclusion
The Wisr comparison rate is a useful benchmark, but your real cost depends on the amount and term you choose. Calculate your personal effective rate, compare offers on the same basis and use the absence of exit fees to cut the total you repay.