Loan Repayment Calculator
What will your loan repayments actually be?
Before you start looking at properties, it helps to know what a loan will actually cost you each month. Use this calculator to estimate repayments across different loan amounts, rates and terms.
How does it work?
A loan repayment calculator works out your estimated monthly, fortnightly, or weekly repayments based on your loan amount, the interest rate, and the loan term. It uses a standard amortisation formula that spreads your repayments evenly across the term, with early repayments weighted more toward interest and later ones weighted more toward principal. The result is an estimate. Your actual repayments will depend on the exact rate your lender offers, any fees, and how often repayments are debited.
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.
What drives your repayment amount up or down?
The loan amount
The more you borrow, the higher your repayments. A larger deposit reduces the loan amount and therefore the repayments.
The interest rate
Even a small difference in rate makes a meaningful difference to repayments over time. This is why comparing lenders matters. A rate that is lower by even half a percent can save a significant amount over a 30-year term.
The loan term
A longer term (30 years vs. 25 years) reduces monthly repayments but increases the total interest paid. A shorter term means higher monthly repayments but you pay off the loan faster and pay less interest overall.
Fixed vs. variable rate
A fixed rate stays the same for a set period giving you certainty. A variable rate moves with the market. Your repayments stay the same on a fixed rate but can go up or down on a variable rate.
Repayment Frequency
Paying fortnightly instead of monthly can shave time off your loan and reduce the total interest you pay. Our fortnightly repayment calculator shows exactly how much difference this makes.
What actually moves the needle on your mortgage
• Set up an offset account and keep your savings there. Every dollar in your offset reduces the interest you pay.
• Switch to fortnightly repayments instead of monthly. Because there are 26 fortnights in a year rather than 24 half-months, you effectively make one extra monthly repayment per year.
• Make extra repayments whenever you can. Even small additional amounts made early in the loan have a compounding effect on how quickly you pay it off.
• Review your rate every 1 to 2 years. Lenders often offer better rates to new customers than to existing ones. A refinance can reduce your repayments significantly.
• Build a repayment buffer if possible. Getting ahead on repayments gives you a safety net if your income changes.
Loan repayment questions we get asked a lot:
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A shorter term means less interest paid over the life of the loan, but higher repayments each month. How those two sit against each other comes down to your income stability and how much buffer you want in your budget. A longer term with the flexibility to make extra repayments is another structure people look at, because it keeps the required repayment lower while still allowing you to pay it down faster.
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On a variable rate loan, your repayments will increase when the lender raises their rate. On a fixed rate loan, your repayments stay the same until the fixed period ends. When lenders stress-test your borrowing capacity they use a buffer above the current rate, which is partly designed to make sure you can handle rate increases.
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Most lenders allow you to change your repayment frequency. Contact your lender directly or ask us to check on your behalf.
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Principal and interest (P&I) repayments reduce your loan balance with every payment. Interest-only repayments cover just the interest, so the loan balance does not reduce during the interest-only period. Interest-only is commonly used by investors for cash flow purposes. Our interest-only calculator shows you the difference in repayment amounts.
Want to know your repayments would actually look like?
A calculator gives you a starting estimate. A discovery call gives you the real numbers based on actual lender rates for your situation.