Home Loan Repayment Calculator

Understanding your repayments

Your repayment is made up of two parts: interest (the cost of borrowing) and principal (paying down what you owe). Early in the loan most of each repayment goes to interest; over time more goes to principal.

Even a small change in your interest rate can make a big difference over 25–30 years. If your rate looks higher than what's on offer today, it may be worth checking whether refinancing could save you money.

Worked examples

These indicative principal & interest figures assume a 30-year term. Your actual rate will depend on your deposit, income and the lender — a broker can confirm what you'd realistically qualify for.

• $400,000 at 6.10% — about $2,424/month, roughly $472,600 in total interest.
• $650,000 at 6.10% — about $3,939/month, roughly $768,000 in total interest.
• $900,000 at 6.10% — about $5,454/month, roughly $1,063,400 in total interest.

Notice how the total interest can rival the amount borrowed. That's why even a 0.25%–0.50% rate difference — or shaving a few years off the term — can save you tens of thousands.

Three ways to pay less interest

• Pay more often. Fortnightly repayments squeeze in the equivalent of one extra monthly payment a year.
• Use an offset account. Savings held against your loan reduce the balance interest is charged on.
• Review your rate regularly. Rates drift; refinancing or a lender rate review can reset yours to market.