Extra Repayment Calculator
What affects the impact of extra repayments?
When you start making extra repayments
Extra repayments made early in the loan have a much bigger impact than those made near the end. This is because more of your early repayments go toward interest rather than reducing your principal.
The amount of the extra repayment
Even a modest extra amount each month compounded over years can make a substantial difference. You do not have to make large lump sums to benefit.
Your interest rate
The higher your interest rate, the more you save by reducing your balance early. Extra repayments are more powerful in high-rate environments.
Whether your loan allows extra repayments
Most variable rate loans allow unlimited extra repayments. Fixed rate loans often cap or restrict them. Check the terms of your loan before making significant extra repayments.
The calculator has been provided in good faith as a guidance tool only. Results are not financial advice, are a guide only, and are not a guaranteed outcome or quote. Borrowers should always discuss their individual situation with an Australian Credit Licensee or authorised Credit Representative.
Getting the most out of extra repayments
• Set up an automatic extra transfer on payday before you have a chance to spend it.
• Put any windfall income (tax refunds, bonuses, gifts) straight onto your mortgage.
• If your loan has a redraw facility, extra repayments are still accessible if you need them later.
• On a fixed rate loan, check your extra repayment limit before you exceed it as fees can apply.
• Consider whether an offset account might suit you better than making extra repayments if you want to keep your savings accessible.
Extra repayment questions we get asked a lot:
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If your loan has a redraw facility, yes. Redraw lets you access extra repayments you have made. Not all loans have redraw, and some charge a fee to use it. Check your loan terms or ask us.
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Both reduce the interest you pay, but in different ways. Extra repayments permanently reduce your loan balance. Offset keeps your savings separate and accessible while still reducing the interest you pay. If you want flexibility, an offset account is usually more versatile. Our Home Loan Offset Calculator shows the difference.
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Not automatically. Your minimum repayment stays the same unless you specifically ask the lender to recalculate it. The benefit of extra repayments is that they reduce your loan term and total interest, not your required monthly payment.
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It depends on the lender and loan product. Many fixed rate loans cap extra repayments (commonly around $10,000 per year) and charge fees if you exceed the limit. Check your loan conditions or ask us before making significant extra repayments on a fixed rate product.
Want to set your loan up to pay it off faster?
How your loan is structured affects how much interest you pay over time. Book a discovery call and we'll walk you through the features and what each one does.