Mortgage Repayment Calculator Australia

How to Use This Home Loan Calculator

Enter your loan amount, interest rate, and loan term to instantly calculate your mortgage repayments. Choose between weekly, fortnightly, or monthly payment frequencies to see how each affects your repayments. The calculator also shows your total interest payable and a year-by-year breakdown of principal and interest.

Understanding Australian Mortgage Repayments

When you take out a home loan in Australia, your repayments are structured to pay off both the principal (the amount borrowed) and the interest charged by the lender. This calculator uses the standard amortization formula used by Australian banks and lenders.

How Repayment Frequency Saves You Money

Switching from monthly to fortnightly repayments is one of the easiest ways to pay off your mortgage faster. Here's why: when you pay fortnightly, you make 26 payments per year. This equals 13 monthly payments instead of 12, effectively making one extra monthly payment each year without noticing the difference.

For a $500,000 loan at 6.5% over 30 years, switching to fortnightly payments could save you over $80,000 in interest and reduce your loan term by several years.

Principal vs Interest Explained

In the early years of your mortgage, most of your repayment goes toward interest rather than reducing the principal. For example, on a new 30-year loan, around 70% of your first payment might be interest. As you progress through the loan, this ratio shifts until most of your payment reduces the principal.

Tips for Reducing Your Mortgage Faster

• Use an offset account: Money in an offset account reduces the balance your interest is calculated on, potentially saving you thousands
• Make extra repayments: Even small additional payments can significantly reduce your loan term and total interest
• Round up payments: Rounding your repayments up to the nearest $50 or $100 accelerates your payoff
• Review your rate regularly: Compare your rate to market rates annually and negotiate or refinance if you can do better
• Avoid redrawing: If you've made extra repayments, try not to redraw them—let them work to reduce your interest

Frequently Asked Questions

What is LMI and when do I pay it?

Lenders Mortgage Insurance (LMI) is a one-off premium charged when you borrow more than 80% of a property's value. It protects the lender (not you) if you default. LMI can cost thousands of dollars and is usually added to your loan.

What's the difference between interest rate and comparison rate?

The interest rate is just the rate charged on your loan. The comparison rate includes the interest rate plus most fees and charges, giving you a more accurate picture of the true cost of a loan. Always compare loans using the comparison rate.

Can I pay off my mortgage early?

Most variable rate loans allow unlimited extra repayments without penalty. Fixed rate loans typically have limits on extra repayments (often $10,000-$20,000 per year) and may charge break costs if you pay off the loan early or refinance during the fixed period.