Personal Loan vs Credit Card Calculator

This calculator compares borrowing the same amount on a personal loan against putting it on a credit card in New Zealand, showing the total interest and the time to clear each way so you can see which is genuinely cheaper. The two products work very differently. A personal loan gives you a fixed amount at a set rate over a fixed term, with level repayments that guarantee the debt is gone by the end. A credit card is open-ended: the rate is usually higher, and because the minimum payment is tiny, a balance can drift for years racking up interest unless you commit to paying a fixed amount. You enter the amount you need, the personal loan rate and term, and the credit card rate and the fixed monthly payment you would realistically make, and the calculator amortises the loan and simulates the card month by month. It then reports the total interest and payoff time for each, names the cheaper option, and shows the difference. For a planned purchase of a fixed size, the structure of a personal loan usually wins because the term forces the balance down, while a card only competes when you can clear it inside the interest-free window. Enter your figures to see which way costs you less.

Assumes no new card spending and a steady fixed card payment. Estimate only, not financial advice.