Mortgage Repayment Calculator Australia
Estimate your home loan repayments, total interest and total amount repaid using the loan amount, interest rate, loan term and repayment frequency. You can also see how a higher or lower interest rate could affect your repayments.
Home Loan Details
Enter your loan details below. This calculator models a principal-and-interest mortgage.
Interest Rate Comparison
See how your estimated repayment changes if the interest rate moves by 1 percentage point.
Mortgage Repayment Schedule
The table below summarises the estimated loan balance, principal repaid and interest paid at the end of each year.
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|
How to Use the Mortgage Repayment Calculator
Enter the amount you plan to borrow, your annual home loan interest rate and the length of the loan. Then choose whether you want to estimate monthly, fortnightly or weekly repayments.
The calculator will estimate:
- Your regular principal-and-interest repayment;
- Total interest over the selected loan term;
- Total amount repaid;
- An approximate final repayment date;
- A yearly mortgage balance schedule; and
- The effect of a one percentage point change in interest rates.
How Are Mortgage Repayments Calculated?
A principal-and-interest mortgage repayment can be estimated using the standard amortising loan formula:
Where:
M = repayment per period
P = amount borrowed
r = interest rate per repayment period
n = total number of repayments
The calculator converts the annual interest rate into a rate for the selected repayment frequency and then applies this formula across the loan term.
Mortgage Repayment Example
Consider a home loan with:
- Loan amount: $600,000
- Interest rate: 6.00% p.a.
- Loan term: 30 years
- Repayments: monthly
Enter these figures into the calculator above to estimate the monthly principal-and-interest repayment and total interest over the loan term.
What Is a Principal and Interest Home Loan?
With a principal-and-interest home loan, each regular repayment generally includes an amount that reduces the outstanding loan balance and an amount that covers interest.
During the earlier years of a long mortgage, a larger proportion of each repayment can go toward interest. As the outstanding balance falls, the interest component generally falls and more of each repayment goes toward principal.
What Is an Interest-Only Home Loan?
With an interest-only home loan, repayments during the interest-only period generally cover interest without reducing the principal. When the interest-only period ends, principal-and-interest repayments can be higher because the principal must then be repaid over the remaining loan term.
This calculator is designed for principal-and-interest loans, not interest-only mortgage periods.
How Interest Rates Affect Mortgage Repayments
The interest rate can have a substantial effect on both your regular repayment and the total amount of interest paid over a long home loan.
Even a relatively small rate difference can become significant when applied to a large mortgage over 20 or 30 years.
The interest-rate comparison section above estimates your repayment at:
- 1 percentage point below your entered rate;
- Your entered rate; and
- 1 percentage point above your entered rate.
This is useful for exploring how repayments could change, but it is not a prediction of future interest rates.
Monthly vs Fortnightly vs Weekly Mortgage Repayments
Home loan repayment schedules may be monthly, fortnightly or weekly, depending on the lender and loan product.
This calculator calculates a repayment directly for the selected frequency using the corresponding number of repayment periods. Actual lender calculations may use different daily-interest, rounding or payment-processing conventions.
How Can You Reduce Mortgage Interest?
Depending on your loan terms and financial circumstances, strategies that may reduce total mortgage interest can include making additional repayments, maintaining funds in a qualifying mortgage offset account, or refinancing to a lower interest rate.
Extra repayments reduce the outstanding principal sooner, which can reduce future interest. Some lenders may restrict extra repayments or charge fees on certain loan products, so check your loan conditions.
Mortgage Offset Accounts
An offset account is generally a transaction or savings account linked to a mortgage. The account balance may reduce the amount of the mortgage on which interest is calculated.
For example, if a qualifying mortgage has a balance of $500,000 and $20,000 is held in a fully offsetting account, interest may effectively be calculated on $480,000, subject to the loan’s terms and conditions.
What Costs Are Not Included?
This repayment calculator focuses on the loan repayment itself. It does not automatically include costs such as:
- Loan establishment fees;
- Ongoing package or account fees;
- Lenders mortgage insurance;
- Stamp duty;
- Conveyancing;
- Property inspections;
- Council rates;
- Home insurance;
- Mortgage discharge or refinancing fees; or
- Changes to future interest rates.
These costs should be considered separately when assessing the overall cost of buying or financing a property.
Mortgage Repayment Calculator Assumptions
This calculator uses the following simplifying assumptions:
- The loan is a principal-and-interest loan;
- The entered interest rate remains constant for the modelled term;
- Repayments remain constant unless you change the inputs;
- No additional repayments are included;
- No offset account balance is included;
- Loan fees are excluded;
- The interest rate is converted to the selected repayment frequency; and
- Results are rounded for display.
Related Home Loan Calculators
Mortgage Repayment Calculator FAQs
How do I calculate my mortgage repayment?
Enter your loan amount, annual interest rate, loan term and repayment frequency into the calculator above. It uses an amortising loan formula to estimate principal-and-interest repayments.
Does a longer mortgage term reduce repayments?
A longer term will generally reduce the regular repayment when other inputs remain unchanged, but it can increase the total amount of interest paid because the loan remains outstanding for longer.
What happens to my mortgage repayment if interest rates rise?
For a variable-rate loan, a higher interest rate will generally increase the repayment required to repay the same balance over the remaining term. The rate comparison above can model a higher-rate scenario.
Does this calculator include mortgage fees?
No. The calculator estimates principal-and-interest loan repayments and does not automatically include establishment fees, package fees, lenders mortgage insurance or property purchase costs.
Is this calculator suitable for interest-only loans?
No. It is designed for principal-and-interest home loans. Interest-only loans have a different repayment structure.
Are these repayments the same as my lender’s repayments?
Not necessarily. Lenders may use different interest accrual, rounding, fee and repayment conventions. This calculator provides an estimate rather than a lender quote.
Can this calculator tell me how much I can borrow?
No. Mortgage repayment and borrowing capacity are different calculations. Use the Home Loan Borrowing Power Calculator for an indicative borrowing estimate.