Home Loan Repayment Calculator
Whether you’re comparing loan options, working out what a rate change does to your budget, or trying to see how much an offset account saves you, this calculator gives you the numbers. Enter your loan details and adjust the frequency, offset balance, and extra repayments to see the real cost of your loan and where you can save.
How to use this calculator
Enter the loan amount you’re borrowing – for a purchase that’s the price minus your deposit, for a refinance it’s your current outstanding balance. Set your interest rate and loan term, then choose whether your loan is Principal and Interest or Interest Only.
Principal and Interest means each repayment reduces your loan balance while covering the interest charged. Interest Only means your repayments cover only the interest for a set period – your balance doesn’t reduce during that time, and repayments increase when the interest-only period ends.
Switching the repayment frequency between monthly, fortnightly, and weekly shows you how each option affects your total. Fortnightly repayments work out to one extra monthly payment per year, which reduces your loan term and total interest without requiring a larger payment amount.
If you have or are considering an offset account, enter the balance in the offset field. Money sitting in an offset account reduces the balance interest is charged on, which cuts the amount of interest you pay and shortens your loan term. The savings card shows you exactly how much difference it makes at your current balance.
The extra repayment field lets you see the impact of putting more toward your loan each period – even a modest extra amount applied consistently makes a noticeable difference over a 30-year term.
Common Questions
What’s the difference between Principal and Interest and Interest Only repayments? With Principal and Interest, each repayment chips away at your loan balance as well as covering the interest charged for that period. Over time your balance reduces and you build equity. With Interest Only, repayments cover just the interest – your balance stays the same throughout the interest-only period. Investors sometimes use interest-only periods to maximise cash flow, but the total interest cost over the life of the loan is higher, and repayments increase once the interest-only period ends.
How does an offset account reduce my repayments? An offset account is a transaction account linked to your home loan. The balance in the account is offset against your loan balance daily before interest is calculated. So if your loan balance is $500,000 and you have $30,000 in offset, you’re only charged interest on $470,000. It doesn’t reduce your repayment amount directly – it reduces the interest component, which means more of each repayment goes toward reducing your principal.
Does paying fortnightly actually make a difference? Yes, and more than most people expect. Paying fortnightly rather than monthly results in 26 payments per year instead of 24. That’s the equivalent of one extra monthly payment per year, applied directly to your principal. On a $600,000 loan at 6.50% over 30 years, switching to fortnightly repayments typically cuts around 3-4 years off the loan term and saves tens of thousands in interest.
How accurate is this calculator? It’s a reliable planning tool but not a quote. The calculation assumes your rate stays constant over the full loan term, which won’t be the case for a variable rate loan. It also excludes lender fees and charges. Use it to understand the shape of your repayments and the impact of different variables – for a precise figure based on your actual loan, talk to your lender or broker.
Your repayment figure is only part of the picture. The rate you negotiate, whether you go fixed or variable, and how your loan is structured all affect what you actually pay over the life of the loan. If you want to compare options across 30-plus lenders and find the right structure for your situation, book a call.
