How much does a loan establishment fee cost per month you keep it?

Use the fee as one line in a total-cost worksheet

Divide a one-off establishment fee by the number of months you realistically expect to keep the loan. That converts the fee into a simple planning allocation, not an interest rate and not an accounting rule. ASIC Moneysmart says to compare the comparison rate, interest rate, application or establishment fees, ongoing fees, missed-payment costs and early-repayment conditions.

This guide is educational, not personal financial advice. We receive no commission from the official links below. Product terms can change, so open the lender’s current page and contract before relying on any fee snapshot.

Source: ASIC Moneysmart — Personal loans · National Australia Bank — Personal loans

Build the worksheet from current written terms

At the check on 10 October 2026, NAB’s personal-loan page listed a AUD 350 establishment fee, a AUD 15 monthly loan service fee, a AUD 7 weekly late-payment fee and a AUD 0 exit fee. It also said the establishment fee may be waived for refinancing, so the published fee is not universal.

Use the issuer snapshot only as a worked example. For each loan you are comparing, record the fee, whether it is waived, the ongoing fee, the quoted rate, the comparison-rate assumptions, your intended term and any early-repayment conditions.

Source: ASIC Moneysmart — Personal loans · National Australia Bank — Personal loans

Replay short and long holding periods

Using the current NAB establishment fee only, AUD 350 ÷ 12 months = AUD 29.17 per month, rounded to cents. Over 36 months, AUD 350 ÷ 36 = AUD 9.72 per month. The lower monthly allocation does not mean the longer loan is cheaper.

Add the listed monthly service fee: over 12 months, AUD 350 + (AUD 15 × 12) = AUD 530 in those two disclosed fees. Over 36 months, AUD 350 + (AUD 15 × 36) = AUD 890. Interest, late fees and any other contract costs are still outside these totals.

Source: ASIC Moneysmart — Personal loans · National Australia Bank — Personal loans

Let the comparison rate challenge the shortcut

Moneysmart says a comparison rate includes interest and most fees, but it is only accurate for the example loan amount and term used to calculate it. A lower advertised interest rate can still have a higher comparison rate, and a longer term can reduce repayments while increasing total cost.

The conclusion can also reverse if an establishment fee is waived, an early-repayment fee applies elsewhere, or your actual rate differs from the advertisement. Your next step is to calculate one-off fee ÷ expected months, then add every monthly fee and compare the lender’s total repayment and comparison-rate assumptions. Do not choose on the establishment-fee allocation alone.

Source: ASIC Moneysmart — Personal loans · National Australia Bank — Personal loans

Changes to this guide

10 October 2026: First publication after ASIC Moneysmart and issuer review, six fee calculations, waiver and term counterexamples, and network originality screening.