Mortgage Repayment Calculator | Home Loan Repayment Calculator

Here are the details you’ll need to enter about your home loan. Refinance

1

Loan amount

How much money are you looking to borrow for a home loan?

2

Repayment type

Will you be making principal and interest or interest-only repayments? Hint: Most home loans involve principal and interest repayments where you pay back the amount borrowed and the interest charged from the start.

3

Loan term

Over how many years would you like to repay your home loan? The default is usually 30 years for new home loans.

4

Interest rate

What is the annual interest rate on your home loan?

Once you’ve entered these details, our calculator will give you an estimate of your home loan repayments. You can choose to see weekly, fortnightly or monthly repayments.

How is interest calculated on a home loan?

Interest is calculated daily and charged monthly onto your outstanding loan balance. This means that each month, you pay interest on the amount you still owe. As you make repayments, your loan balance decreases, so the interest you pay also decreases over time.

Here’s an example:

You take out a $600,000 home loan with a 6.00% interest rate over 30 years

To calculate the annual interest cost, you’ll need to convert the interest rate to a decimal: 6.00% / 100 = 0.0600

Then you multiply the loan amount by this decimal: $600,000 x 0.0600 = $36,000

To find out the daily interest cost, you’ll need to divide the annual interest by 365 days: $36,000 / 365 = $98.63

To calculate the monthly interest cost, you’ll need to multiply the daily interest by the number of days in a month (e.g. 31 days): $98.63 x 31 = $3,057.53

Your monthly interest cost would be approximately $3,057.53

Your regular mortgage repayments are based on the loan amount, interest rate, any fees, and the loan term. The repayment amount is calculated by spreading the total loan balance, - both principal and interest - over the loan term. Each lender may use a slightly different formula. The calculation also considers how often you make payments (monthly, fortnightly, or weekly) and adjusts accordingly.

This table shows how much the interest rate can affect your monthly repayments.

Home loan amount	$400,000
Interest rate	6.00%
Estimated monthly repayments	$2,398.20
Home loan amount	$400,000
Interest rate	6.50%
Estimated monthly repayments	$2,528.27 (+ $130.07)
Home loan amount	$600,000
Interest rate	6.00%
Estimated monthly repayments	$3,597.30
Home loan amount	$600,000
Interest rate	6.50%
Estimated monthly repayments	$3,792.41 (+ $195.11)
Home loan amount	$800,000
Interest rate	6.00%
Estimated monthly repayments	$4,796.40
Home loan amount	$800,000
Interest rate	6.50%
Estimated monthly repayments	$5,056.54 (+ $260.14)
Home loan amount	$1,000,000
Interest rate	6.00%
Estimated monthly repayments	$5,995.51
Home loan amount	$1,000,000
Interest rate	6.50%
Estimated monthly repayments	$6,320.68 (+ $325.17)

Home loan amount	Interest rate	Estimated monthly repayments
$400,000	6.00%	$2,398.20
$400,000	6.50%	$2,528.27 (+ $130.07)
$600,000	6.00%	$3,597.30
$600,000	6.50%	$3,792.41 (+ $195.11)
$800,000	6.00%	$4,796.40
$800,000	6.50%	$5,056.54 (+ $260.14)
$1,000,000	6.00%	$5,995.51
$1,000,000	6.50%	$6,320.68 (+ $325.17)

This example is based on an owner-occupier home loan over 30 years with principal & interest repayments. Other fees and charges applied by lenders would also affect the repayment amount.

Home loans guides & resources

What's the next step on your property journey? Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.

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FAQs about home loan repayments

How do home loan repayments work?

Understanding home loan repayments involves several key factors:

Loan amount: The total amount you borrow from the lender. For example, if you take out a $500,000 home loan, that’s your principal loan amount.

Interest rate: This is the percentage the lender charges you annually for borrowing the money. The rate can be fixed (remains the same over a set period) or variable (changes with market conditions).

Loan term: This is the period over which you’ll repay the loan. Common terms are 25 or 30 years. A longer term means lower repayments but more interest over time, while a shorter term means higher repayments but less total interest.

Repayment structure: Will you make repayments that cover the principal and interest or only the interest portion of the loan, known as interest-only?

Borrower type: Are you planning to live in the property (owner occupier) or rent it out (investor)? Repayment frequency: How often will you make repayments? While monthly is usually the default, making fortnightly or weekly repayments will mean you pay down the loan faster and save on interest.

Extra payments: Some loans let you make extra payments beyond your regular repayments. These additional payments go straight towards reducing your loan principal, which lowers your total interest costs and helps you pay off the loan faster.

Useful features: You might want features like a home loan with an offset account, which can help lower the amount of interest you pay on your mortgage.

What interest rate do I pay on my home loan?

The interest rate on your mortgage depends on the loan, lender and your financial situation. Right now, the average rate for owner-occupier home loans is 6.28% p.a., so a rate close to this is competitive. You can compare the best interest rates by reading our home loans comparison guide.

Will my home loan deposit change how my mortgage repayments are calculated?

Your mortgage repayments will be affected by the size of your home deposit. Lenders offer different interest rates based on your loan-to-value ratio (LVR), which is determined by how much deposit you have. If your deposit is less than 20%, most banks will also charge lender’s mortgage insurance (LMI) due to the higher perceived risk.

What is the average mortgage repayment in Australia?

The average home loan repayment is currently $3,932 per month. How much you actually pay depends on your loan amount, the interest rate, loan term and repayment frequency. Use the calculator on this page to work out your estimated mortgage repayments.

How can I repay my home loan sooner?

Some loans let you make extra payments on top of your regular ones. These extra payments reduce your loan balance, which lowers the total interest you pay over time and shortens the loan term. Most lenders offer a redraw facility, letting you withdraw any extra payments you’ve made if needed, though there might be limits on how much you can withdraw.

Which is better: weekly, fortnightly or monthly repayments?

Choosing between weekly, fortnightly or monthly home loan repayments depends on your financial situation and goals. Weekly and fortnightly repayments can help you pay off your loan faster and reduce interest costs because you make more repayments each year.

For example, let’s say you have a home loan of $600,000 with a 5.99% interest rate over a 30-year term. The table below gives you an idea on how each payment frequency impacts your total loan repayments over a year.

Monthly (12 payments a year)

Repayment amount: $3,953.45

Total annual repayment: $43,121.40

Extra paid per year: N/A

Total interest paid: $693,638

Fortnightly (26 payments a year)

Repayment amount: $1,796.73

Total annual repayment: $46,714.98

Extra paid per year: $3,593.58

Total interest paid: $545,283

Weekly (52 payments a year)

Repayment amount: $898.36

Total annual repayment: $46,714.72

Extra paid per year: $3,593.32

Total interest paid: $544,625

In the scenario above, you’ll save almost $150,000 in interest by switching to fortnightly or weekly repayments over the life of the loan. Keep in mind it assumes the interest rate won’t change during the loan term.

Home Loan Repayment Calculator