Extra Repayments Calculator

Why extra repayments work so hard

Early in a loan, most of your repayment is interest and only a small slice reduces the balance. An extra repayment skips that split entirely — 100% of it comes off the principal. Every dollar you take off the balance today is a dollar that never accrues interest again for the remaining decades of the loan, which is why small, consistent extra payments compound into six-figure savings.

Worked example

On a $600,000 loan at 6% p.a. over 30 years, the minimum repayment is about $3,597 a month. Add $200 a month and the loan is repaid roughly 3–4 years earlier, saving well over $80,000 in interest. Add $500 a month and you save far more again — try the numbers above.

Practical ways to find the extra

• Keep your repayment the same after a rate cut — the difference becomes an automatic extra repayment.
• Switch to fortnightly payments at half the monthly amount to sneak in an extra month each year.
• Direct tax refunds, bonuses and work reimbursements straight at the loan or into the offset.
• Refinance to a sharper rate but keep paying the old, higher repayment.

Check the fine print first

Fixed rate loans usually cap extra repayments each year and charge break costs beyond that cap. Some loans also charge for redraw. If you want the interest benefit without locking money away, an offset account achieves nearly the same result while keeping funds accessible.