Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. Always consult with a qualified tax professional or accountant before making investment decisions. This tool does not constitute advice from the Australian Taxation Office. Evercend Pty Limited does not hold an Australian Credit Licence, and does not provide any credit or credit related services.
Home loan repayment calculator inputs and results
Home Loan Repayment Calculator
P&I vs interest-only, extra repayments, total interest, all live as you type.
Current average variable ~6.3%
Optional: see interest saved
Monthly repayment
$3,710
Total interest
$735,574
Total repaid
$1,335,574
Paid off in
30yr
How home loan repayments work
A home loan repayment is the regular amount you pay your lender, made up of interest on what you owe and a portion of the loan principal. On a principal and interest loan, each repayment slowly reduces the balance you owe.
The size of your repayment depends on the amount borrowed, the interest rate, the loan term and how often you repay. This calculator estimates your repayment and the total interest over the life of the loan. It is a model, not a quote or an approval, and your lender's figures may differ.
How to use this calculator
Enter the loan amount
Use the amount you plan to borrow after your deposit.
Add the interest rate
Enter the annual interest rate for the loan.
Set the term and frequency
Choose the loan term in years and how often you repay.
Read the result
The calculator shows your repayment and the total interest over the loan.
How this calculator works
The calculator works out the level repayment needed to pay off the loan amount, plus interest, evenly over the term you choose. It then adds up the interest across every repayment to show the total interest you would pay.
Assumptions used
Interest is calculated by compounding at the same frequency as your repayments, in line with the approach ASIC MoneySmart uses. The interest rate is assumed to stay the same for the life of the loan. The estimate covers principal and interest loans only. It does not include upfront costs such as loan establishment fees, lenders mortgage insurance, or ongoing account fees, and it does not confirm that a lender will approve the loan.
Worked example
A borrower takes a $500,000 loan over 30 years at 6.0%, repaid monthly.
The monthly repayment is about $2,998. Over the full 30 year term, the total interest is about $579,200, so the total amount repaid is about $1,079,200.
Small changes make a large difference over 30 years. A lower rate, a shorter term, or more frequent repayments all reduce the total interest you pay.
What changes your repayments
Several things move your repayment amount and the total interest you pay. The main ones are:
Loan amount
The larger the amount you borrow, the higher your repayment and the more interest you pay over the loan.
Interest rate
A higher rate raises both your repayment and the total interest. Even a small difference in rate adds up over a long loan.
Loan term
A shorter term means higher repayments but less total interest. A longer term lowers the repayment but increases the total interest paid.
Repayment frequency
Paying fortnightly rather than monthly means you make the equivalent of one extra monthly repayment each year, because there are 26 fortnights in a year. This can reduce the interest you pay and shorten the loan.
Extra repayments
Paying more than the required amount, or adding a lump sum, reduces the balance that interest is charged on. In the early years most of a repayment goes towards interest, so extra payments early have the largest effect.
Offset account
Money held in an offset account reduces the loan balance that interest is charged on. For example, $20,000 in an offset account on a $500,000 loan means interest is charged on $480,000.
Interest type
A variable rate can rise or fall over the loan, changing your repayment. A fixed rate stays the same for a set period, which makes repayments predictable during that time.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Repayment type | Principal and interest | ASIC MoneySmart |
| Interest compounding | At the repayment frequency | ASIC MoneySmart, mortgage calculator |
| Fortnightly effect | 26 fortnights equal one extra monthly repayment a year | ASIC MoneySmart |
| Comparison rate | Interest plus most fees, as a single figure | ASIC MoneySmart glossary |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
Repayments are worked out so the loan amount and the interest are paid off evenly over the loan term. Each repayment covers the interest owing for the period plus a portion of the principal. As the balance falls, more of each repayment goes towards principal.
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Sources
- •ASIC MoneySmart, choosing a home loan
- •ASIC MoneySmart, pay off your mortgage faster
- •ASIC MoneySmart, mortgage calculator assumptions
- •Reserve Bank of Australia, lenders interest rates statistics
Content reviewed and figures checked against the sources above on 10 August 2026.