Home loan repayment calculator
See what your repayments could look like based on loan amount, interest rate, and term — and compare different repayment options.
How are home loan repayments calculated?
Repayments are based on three key factors:
• Loan amount — how much you borrow
• Interest rate — the cost charged by your lender
• Loan term — how many years you take to repay it
Most home loans in Australia use principal & interest repayments, meaning your repayment covers both the amount borrowed and the interest. The standard calculation uses amortisation — where repayments stay consistent, but the split between interest and principal changes over time.
Example: For a $600,000 loan at 6% over 30 years, your monthly repayment would be around $3,600. But if the rate drops to 5.5%, you’d save around $200 per month — or over $70,000 across the loan term.
It’s not just about the rate — here’s what else to consider.
• Repayment Frequency: Fortnightly or weekly repayments may reduce interest paid over time due to more frequent compounding reductions in your loan balance.
• Extra Repayments: Making additional payments (even small ones) can significantly reduce your total interest and shorten your loan term.
• Loan Type: Principal & Interest repayments reduce your loan balance over time. Interest-Only repayments keep your balance the same — useful short-term, but more costly long-term.
• Loan Features: Having an offset account or redraw facility can reduce interest or give you flexibility while staying on track.
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Ready to explore your home loan options? Our expert brokers are here to guide you through the process and help you secure the best deal.