See what your home loan could cost.
One of the first things you want to know when buying a property is what your repayments will look like each month. Our free loan repayment calculator gives you a quick estimate based on your loan amount, interest rate and loan term, so you can get a feel for the numbers before making any big decisions.
What affects your home loan repayments?
Loan Amount
$600,000 vs $550,000A lower loan amount reduces your repayment directly.
Interest Rate
6.5% vs 6.0%A 0.5% rate cut saves approximately $195/month on $600,000 over 30 years.
Loan Term
30 years vs 25 yearsShorter terms increase your monthly repayment reduces interest significantly.
Repayment Type
P&I vs interest-onlyInterest-only lowers your monthly cost but doesn't reduce the loan balance.
Repayment Calculator
One thing to keep in mind is that your repayments can change quite a bit depending on the interest rate you get. Even a 0.5% difference on a $600,000 loan can add up to thousands over time. That’s where we come in. We help you find the right lender and rate for your situation, so you’re not paying more than you need to.
Loan Details
Estimated Loan Repayments
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Repayment estimates assume a constant interest rate over the term and don't account for rate changes, fees, or offset/redraw balances. Interest Only figures apply for the term entered, after which principal and interest repayments would typically apply on the remaining balance. Results are general in nature and not financial advice — confirm figures with your lender before proceeding.
How extra repayments and offset can lower your total cost
Extra repayments permanently reduce your loan balance. Every dollar you pay above the minimum goes directly to principal, which means less interest accrues from that point on. On a variable rate loan, there are usually no limits or fees on extra repayments. Fixed rate loans typically restrict this, so it’s worth checking before you choose a fixed term.
Offset accounts work differently. The balance in your offset account reduces the loan balance that interest is calculated on, without actually reducing the loan itself. So if you have $50,000 in offset against a $500,000 loan, you only pay interest on $450,000. The money stays accessible, which is why many borrowers prefer offset to extra repayments for surplus funds.
| Strategy | How it works | Flexibility | Best for |
|---|---|---|---|
| Extra repayments | Permanently reduces loan balance | Low on fixed, high on variable | Paying off faster |
| Offset account | Reduces interest while funds sit there | High, funds accessible anytime | Keeping cash accessible while saving interest |
| Both combined | Maximum interest reduction | Depends on loan type | Borrowers with surplus cash and a variable loan |
Does the frequency matter?
It can make more difference than you might think. With fortnightly repayments, you make 26 half-payments a year, which works out to the equivalent of 13 monthly repayments instead of 12. That extra amount helps pay down your loan faster. Weekly repayments work in a similar way. Paying more frequently can help reduce the interest you pay over time, depending on how your lender calculates interest. It might not seem like much at first, but over a 25 to 30-year loan, those small differences can really add up.
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Frequently Asked Questions
How is my home loan repayment calculated?
Your repayment is calculated using your loan amount, interest rate, loan term and repayment type. For a standard principal and interest loan, each payment covers that period’s interest charge plus a portion of the principal. In the early years of a loan, most of each payment goes to interest. As the balance reduces over time, the principal portion grows and the interest portion shrinks. The loan repayment calculator above does this calculation for you instantly based on the inputs you enter.
What's the difference between a comparison rate and an interest rate?
The interest rate is the headline rate used to calculate your repayments. The comparison rate includes most fees and charges associated with the loan (such as application fees and ongoing monthly fees) and expresses the true annual cost as a single percentage. It’s calculated on a standardised $150,000 loan over 25 years, so it’s a useful comparison tool but won’t exactly reflect your situation. When comparing loans, always look at both, and check what fees are and aren’t included in the comparison rate.
Should I pay weekly, fortnightly or monthly on my home loan?
Fortnightly is generally better than monthly if your cash flow allows it. Because you make 26 half-payments per year rather than 12 full payments, you end up making one extra full payment annually, which reduces your principal faster and saves interest over time. Weekly works on the same principle. Monthly is fine if fortnightly doesn’t suit your pay cycle, but if you’re paid weekly or fortnightly, matching your repayment frequency to your income timing makes it easier to manage.
How much can I save by making extra repayments?
It depends on your loan amount, rate, remaining term and how much extra you pay. Even small amounts, made consistently in the early years of the loan when interest makes up the bulk of each repayment, can save thousands over the life of the loan and cut years off your term. A $200 per month extra repayment on a $600,000 loan at 6% over 30 years can shave several years off the term. Use the borrowing capacity calculator alongside this one to get a fuller picture of your position.
What is an offset account and how does it reduce my repayments?
An offset account is a transaction account linked to your home loan. The balance in it offsets your loan balance for interest calculation purposes. If you have $40,000 in offset against a $580,000 loan, you only pay interest on $540,000. The more you keep in the account, the less interest accrues. Unlike extra repayments, the money stays accessible. Not all loans include offset accounts, and some charge a fee, so it’s worth confirming whether the interest saving outweighs any additional cost before you choose a loan with this feature.
