Home Loan Repayments Calculator
Estimate your repayments and see how different loan structures and repayment strategies affect the total cost of your loan.
What will your home loan really cost?
Whether you're buying your first home, investing or refinancing, understanding your repayments is one of the most important parts of choosing the right loan.
This calculator estimates your repayments and lets you compare principal and interest with interest only, while modelling the impact of extra repayments and an offset account.
This calculator includes
Frequently asked questions
What's the difference between principal & interest and interest only?
With principal and interest, each repayment reduces both your loan balance and the interest charged, so you gradually pay off the debt. With interest only, repayments cover only the interest for an agreed period, keeping repayments lower initially but leaving the loan balance unchanged.
How does an offset account work?
Money held in an offset account reduces the balance your lender charges interest on each day. For example, if you have a $500,000 loan and $20,000 in your offset account, you'll generally only pay interest on $480,000 while that balance remains in the account.
Do extra repayments really make a difference?
Yes. Extra repayments go directly towards reducing your loan balance, which means less interest is charged over time. Even small additional repayments made consistently can save a significant amount of interest and help you repay your loan sooner.
Should I use an offset account or a redraw facility?
For many borrowers, an offset account offers greater flexibility. It can reduce the interest you pay while keeping your loan balance unchanged, which may be beneficial if you later convert your home into an investment property or want easier access to your savings for a future purchase. A redraw facility can also reduce interest and is often suitable if you're focused on paying down your home loan and are comfortable leaving the extra repayments in the loan. The right option depends on your goals, future plans and spending habits.
Should I choose principal and interest or interest only?
It depends on your goals. Many owner-occupiers choose principal and interest to reduce their debt over time, while some investors choose interest only during the early years to improve cash flow. The right option depends on your financial situation, investment strategy and long-term objectives.
Are these repayments exact?
No. This calculator provides indicative estimates only. Your actual repayments will depend on your lender's interest rate, fees, loan features, repayment frequency and the final loan structure.
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These figures are a guide, not a guarantee, and they're not legal, financial, tax or credit advice. Book a free discovery call and get real numbers for your situation.