Home Loan Repayment Calculator Australia
Work out your home loan repayments — monthly, fortnightly, or weekly. Includes offset account savings, extra repayments, and a full year-by-year breakdown.
Offset account & extra repayments (optional)
A Lending Specialist can compare dozens of lenders and find the lowest rate for your situation.
Understanding your home loan repayments
Your home loan repayment depends on three things: the loan amount, the interest rate, and the loan term. With a principal & interest loan, your repayments stay the same each month, but the composition changes — early repayments are mostly interest, while later ones are mostly principal. By the time you reach year 25 of a 30-year loan, you're paying very little interest and mostly chipping away at the principal.
Monthly vs fortnightly vs weekly repayments
Paying fortnightly instead of monthly is one of the simplest ways to save money on your home loan. There are 26 fortnights in a year but only 24 half-monthly periods — so making 26 half-payments effectively means you make 13 full monthly payments per year instead of 12. That extra payment goes straight to reducing your principal.
On a $600,000 loan at 6.2% over 30 years, switching to fortnightly repayments saves around $60,000 in interest and cuts about 4 years off your loan — without any noticeable change to your weekly budget.
How an offset account works
An offset account is a savings or transaction account linked to your home loan. Your lender calculates interest on your loan balance minus whatever's sitting in the offset account. So if you have a $600,000 loan and $50,000 in offset, you pay interest on $550,000 that month.
Your repayments stay the same, but more of each payment goes toward principal rather than interest. The result: you pay the loan off faster and save interest — without tying up your money or losing access to it. Unlike extra repayments, you can withdraw from an offset account anytime.
Extra repayments
Making extra repayments — even $200 a month — directly reduces your loan balance and lowers the interest charged the following month. Over a 30-year loan, consistent extra repayments can save you tens of thousands in interest. Most variable rate loans allow unlimited extra repayments; fixed rate loans typically cap them at $10,000–$20,000 per year.
- Variable rate loans: Usually allow unlimited extra repayments with no penalty. Redraw is typically available.
- Fixed rate loans: Often cap extra repayments at $10,000–$20,000 per year. Exceeding the cap may incur break fees.
- Interest-only loans: Your repayment doesn't reduce the principal — you're essentially renting the money. The loan balance stays the same throughout the IO period, and repayments jump sharply when it reverts to P&I.
Frequently asked questions
What's the difference between the interest rate and comparison rate?
The advertised interest rate is the rate used to calculate your repayments. The comparison rate includes fees and charges — like annual fees and application fees — rolled into a single annual percentage, making it easier to compare loans apples-to-apples. Always check the comparison rate when shopping around.
Can I make extra repayments on a fixed rate loan?
Most lenders allow extra repayments on fixed rate loans, but typically cap them at $10,000–$20,000 per year. Exceeding the cap may trigger a break fee. Variable rate loans generally have no cap on extra repayments, and most offer a redraw facility so you can access the funds if needed.
How much can I borrow for a home loan?
Your borrowing capacity depends on your income, existing debts, living expenses, and the lender's assessment rate (typically 3% above the current rate as a buffer). Use our Borrowing Capacity Calculator for an estimate.
Should I choose a fixed or variable home loan?
Variable rate loans offer flexibility — unlimited extra repayments, offset accounts, and the ability to benefit if rates fall. Fixed rate loans give payment certainty for the fixed period (usually 1–5 years), but you lose flexibility and may pay more if rates drop. Our Fixed vs Variable Calculator can help you compare the total cost of each option.