Home loan repayment calculator
Work out your weekly, fortnightly or monthly repayments, see the total interest, and compare principal and interest with interest-only. No sign-up.
In short: Your repayment depends on three things: how much you borrow, your interest rate and the loan term. On $600,000 at 6.5% over 30 years, principal and interest repayments are about $3,792 a month. Interest-only is about $3,250, but you're not paying the loan down.
How it works
How repayments are worked out
Lenders use: loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of repayments. Here's what most people miss: on a 30-year loan you're about 19 years in before more of each repayment goes to the loan than to interest.
Weekly, fortnightly or monthly?
The "fortnightly hack" only works if your fortnightly repayment is half your monthly one. That's 13 monthly repayments a year instead of 12, which on $600,000 at 6.5% can cut about six years and $176,000 of interest. Ask your lender before you switch.
FAQ
Common questions
How are home loan repayments calculated?
For a principal and interest loan: loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the annual rate divided by 12 and n is the number of months. $600,000 at 6.5% over 30 years is about $3,792 a month.
Are fortnightly repayments cheaper than monthly?
Only if your fortnightly repayment is half your monthly amount, which adds up to 13 monthly repayments a year. If your lender divides the annual amount by 26 instead, it makes almost no difference.
What's the difference between principal and interest and interest-only?
Principal and interest pays the loan down as you go. Interest-only is lower for a set period, often up to five years, but your balance doesn't shrink, and it usually costs more overall.
Does an offset account reduce my repayments?
It reduces the interest you're charged rather than the minimum repayment. More of each repayment goes to the principal, so the loan is paid off sooner.
How accurate is this calculator?
It's an estimate, not a quote. Your real repayment depends on your lender's rate, fees and structure, and rates can change after any Reserve Bank meeting.
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.
