Extra repayments calculator
See how much interest and time you'd save by paying a little extra off your home loan each month, or by dropping in a lump sum. Every option side by side, no sign-up.
Your loan balance over time
The space between the two lines is loan you've already paid off. Every dollar of it stops charging interest from the day you pay it.
| Option | Repayment | Loan-free in | Interest saved | Time saved |
|---|---|---|---|---|
| Minimum repayments only | $3,792/mo | 30 yrs | $0 | 0 mths |
| + $100 a month | $3,892/mo | 27 yrs 10 mths | $67,163 | 2 yrs 2 mths |
| + $250 a month | $4,042/mo | 25 yrs 2 mths | $145,879 | 4 yrs 10 mths |
| + $500 a month | $4,292/mo | 21 yrs 10 mths | $240,674 | 8 yrs 2 mths |
| + $1,000 a month | $4,792/mo | 17 yrs 6 mths | $359,518 | 12 yrs 6 mths |
| Fortnightly (half your monthly) | $4,108/mo | 24 yrs 2 mths | $174,513 | 5 yrs 10 mths |
| $20,000 lump sum today | $3,792/mo | 27 yrs 3 mths | $107,833 | 2 yrs 9 mths |
| Your plan | $4,292/mo | 21 yrs 10 mths | $240,674 | 8 yrs 2 mths |
In short: Extra repayments come straight off your loan balance, so every dollar stops charging interest from that day. On a $600,000 loan at 6.5% over 30 years, an extra $500 a month saves about $240,700 in interest and has the loan gone 8 years and 2 months sooner.
How it works
Why small extras go so far
Early in a loan most of your repayment is interest. Extra money skips that and goes straight to the balance, so it saves interest every month for the rest of the loan. That's why $100 a month on $600,000 at 6.5% saves about $67,000, double the roughly $33,000 you'd actually put in.
Extra repayments, offset or redraw?
An offset account cuts interest the same way and keeps the money yours to use. Redraw lets you take extra repayments back out, but the lender sets the rules and can change them. Fixed loans often cap extra repayments at around $10,000 to $30,000 a year, so check before you pay in.
FAQ
Common questions
How much do extra repayments save on a home loan?
On $600,000 at 6.5% over 30 years, $100 a month extra saves about $67,000 in interest and 2 years 2 months. $500 a month saves about $240,700 and 8 years 2 months. $1,000 a month saves about $359,500 and 12 years 6 months.
Is a lump sum or regular extra repayments better?
Both help, and money paid earlier saves more. A $20,000 lump sum today on that $600,000 loan saves about $107,800 in interest and 2 years 9 months. Regular extras build the habit and usually win over the life of the loan.
Do fortnightly repayments really save money?
Yes, if you pay half your monthly repayment every fortnight. That's 26 half-payments a year, the same as 13 monthly repayments instead of 12. On $600,000 at 6.5% it saves about $174,500 and 5 years 10 months.
Can I make extra repayments on a fixed rate loan?
Usually only up to a limit, often around $10,000 to $30,000 a year, before break costs apply. Variable loans generally let you pay as much extra as you like. Check your loan contract or ask us to look at it.
Should I pay extra off the loan or put money in an offset?
They save about the same interest. An offset keeps the money easy to get to, which matters if you might need it or plan to rent the home out later. Extra repayments suit people who'd rather not be tempted to spend it.
Home Loans & Property
Read before you decide
General information only. These calculators give estimates based on the figures you enter and published rates, and don't consider your objectives, financial situation or needs. They're not a quote, credit assessment or tax advice. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd, Australian Credit Licence 390261.
