Home Loan Repayment Calculator
Work out how much your home loan repayments will be and see the total interest you’ll pay over the life of your mortgage. This calculator helps you compare different loan amounts, terms, and repayment frequencies so you can plan your budget with confidence.
How to Use This Calculator
1. Enter your loan amount – This is the total amount you plan to borrow (the property price minus your deposit).
2. Set the interest rate – Use the comparison rate from your lender for the most accurate result.
3. Choose your loan term – Most Australian home loans are 25-30 years, though shorter terms mean higher repayments but less total interest.
4. Select repayment frequency – See how weekly or fortnightly payments compare to monthly.
5. View your results – The calculator shows your repayment amount, total interest, and total amount paid. Toggle the amortisation schedule to see the breakdown over time.
FAQs
Home Loan Repayment Questions
How are home loan repayments calculated?
Home loan repayments are calculated using a standard amortisation formula that considers your loan amount, interest rate, and loan term. Each repayment covers both interest charges and principal reduction. Early in the loan, most of your payment goes toward interest, but over time more goes toward the principal.
Should I choose weekly, fortnightly, or monthly repayments?
Fortnightly repayments can help you pay off your loan faster because you make 26 half-payments per year (equivalent to 13 monthly payments instead of 12). Weekly repayments work similarly. This extra payment each year can save thousands in interest and reduce your loan term.
What interest rate should I use in the calculator?
Use the comparison rate rather than the advertised rate for a more accurate picture. The comparison rate includes most fees and charges. If you’re comparing loans, current Australian home loan rates typically range from around 5.5% to 7% depending on the loan type and your circumstances.
Can I pay off my home loan faster?
Yes! Making extra repayments, even small ones, can significantly reduce your total interest and loan term. Many loans allow unlimited extra repayments without penalty. Use an offset account if available, or increase your regular repayment amount above the minimum.
What’s the difference between principal and interest vs interest-only loans?
With principal and interest (P&I) loans, each payment reduces your debt. Interest-only loans only cover interest charges for a set period (usually 1-5 years), meaning your balance stays the same. Interest-only loans have lower initial repayments but cost more overall.