See your full loan repayment schedule, total interest, and how extra repayments shorten your payoff time.
Rates as of Q2 2025 (example)
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This calculator generates the full loan repayment schedule (amortisation table) for a fixed-rate loan, showing exactly how much of each repayment goes to principal and how much to interest, and how the outstanding balance reduces over time. It also shows the dramatic impact of extra monthly repayments — making even modest additional payments can save tens of thousands in interest and cut years off a 30-year home loan.
Each month, interest is charged on the remaining balance at the monthly rate (annual rate ÷ 12). The fixed monthly repayment pays the interest first, with the remainder reducing the principal. As the balance decreases, a larger proportion of each repayment goes to principal and less to interest — this is the "amortisation" process.
Formula: Monthly Repayment = [Loan Amount × Monthly Rate] ÷ [1 − (1 + Monthly Rate)−N]. Each month: Interest = Balance × Monthly Rate. Principal Paid = Monthly Repayment − Interest. New Balance = Balance − Principal Paid.
Example: A A$500,000 loan at 6% (example rate — enter your actual rate) over 30 years: monthly repayment ≈ A$2,997.75, total interest ≈ A$579,190.95. Adding an extra A$500/month repayment: the loan is paid off in 21 years (108 months earlier), saving approximately A$199,501 in interest. (Note: this example is for illustration purposes only.)
For most Australian home loan borrowers, the monthly repayment is the single largest item in the household budget — and the total interest paid over a 30-year loan is often nearly as large as the loan itself, as shown in the example above. This makes it one of the highest-value areas in personal finance to optimise. Australian home loans commonly offer a redraw facility or offset account that can achieve a similar effect to extra repayments: paying surplus funds into a redraw-capable home loan (or an offset account) reduces the balance on which interest is charged, reducing daily interest and effectively accelerating the loan payoff — while keeping the funds accessible. Most standard variable rate home loans in Australia allow unlimited extra repayments without penalty, making it easy to pay ahead. Fixed-rate home loans, by contrast, often cap the extra repayments allowed during the fixed period (typically A$10,000-A$20,000 per year above the minimum) and charge break costs for repaying beyond these limits or refinancing during the fixed term. When comparing home loans, the extra repayment flexibility and offset account availability are as important as the interest rate, because the ability to pay ahead interest-free (through an offset) significantly affects the true cost of the loan over its life.
An amortisation schedule is a table showing the breakdown of each loan repayment into principal and interest components, and the outstanding balance after each payment. In the early years of a loan, most of each repayment goes to interest (because the balance is high); in later years, more goes to principal (because the balance has reduced). The schedule helps you understand exactly where your repayments are going and how quickly you are building equity.
If you pay exactly half your monthly repayment amount fortnightly, you make 26 half-payments per year, which equals 13 full monthly payments rather than 12. This extra month's repayment each year significantly reduces the outstanding balance faster, saving a material amount of interest and shortening the loan term by several years on a typical 30-year home loan. Many Australian borrowers with fortnightly pay cycles take advantage of this by setting up fortnightly loan repayments. Note: check with your lender whether they offer fortnightly repayments and whether the interest is charged daily or monthly.
For variable-rate home loans, most Australian lenders allow unlimited extra repayments without penalty — check your loan's terms and conditions. For fixed-rate home loans, extra repayments are often capped (commonly at A\$10,000-A\$20,000 per year above the minimum) and repaying more than this (or repaying the full loan) during the fixed period may trigger a break cost. Use this calculator to quantify the interest saving from extra repayments, then check with your lender whether there are any restrictions.
A redraw facility allows you to access extra repayments you have made above the minimum, if you need the funds later. Making extra repayments reduces your outstanding balance and thus the interest charged, while the redraw facility means you can recover those funds if an emergency arises. Redraw is effectively a savings buffer built into your home loan. Not all home loan products offer redraw — check your loan's features. An alternative is an offset account, which achieves a similar interest-reducing effect but keeps the funds in a separate account (typically with full transaction account access).
The interest rate is the rate used to calculate your monthly repayment — it is the rate shown in this calculator. The comparison rate is a standardised figure that incorporates most fees (application fee, ongoing fee, and discharge fee) into a single annual percentage, allowing you to compare the true cost of different home loans. Because fees vary between lenders, a loan with a low interest rate but high fees may have a higher comparison rate than a loan with a slightly higher rate but lower fees. Always check both the interest rate and the comparison rate when comparing home loans.
For a variable-rate loan, when the interest rate rises, your repayment amount increases (if you are on a principal and interest loan with repayments adjusted to maintain the original term) or your loan term extends (if your lender keeps the repayment the same and extends the term instead — check your lender's policy). Use this calculator to model the impact of a rate change: enter the new rate and see the updated monthly repayment and total interest. For a A\$500,000 loan, a 1% rate increase adds approximately A\$300-A\$350 to the monthly repayment.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only and does not represent a rate currently offered by any specific lender — actual rates, fees, comparison rates, and repayment terms depend on the lender, loan type, and your individual circumstances and change frequently. This calculator models a fixed interest rate for the full loan term — for variable-rate loans, actual repayments will change if rates change. Consult a qualified financial adviser or mortgage broker for advice specific to your circumstances.