Estimate principal-and-interest repayments, compare loan terms and explore how ongoing property costs, higher rates and extra payments could affect an Australian home loan.
Estimated components of the lifetime loan repayments
How scheduled repayments gradually reduce the principal
Estimated principal, interest and extra payments for each year
| Year | Principal repaid | Interest charged | Extra payments | Total paid | Ending balance |
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See how different deposit percentages and loan terms affect the estimated monthly repayment and total interest.
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Model the repayment and total interest if the selected rate were to increase.
This comparison assumes the higher rate continues for the remaining loan term. It is a stress scenario, not a forecast of future interest rates.
Add regular extra payments or a lump sum to estimate the possible reduction in interest and loan duration.
This calculator provides an Australian planning estimate only. Actual rates, repayment calculations, fees, LMI, valuations, transfer duty, grants, concessions, council charges, strata levies and insurance costs vary by lender, borrower, property, state or territory. It is not a credit assessment, pre-approval or loan offer.
This calculator starts with the property price and deposit to estimate the base loan amount. It then applies the selected interest rate, repayment frequency and loan term to model a principal‑and‑interest repayment. These figures provide a structured way to compare loan scenarios using Australian mortgage settings.
You can add recurring property expenses, test different deposit sizes, compare loan terms, model higher interest rates and explore the impact of extra repayments. These tools help illustrate how a loan behaves under different assumptions, but they do not replicate a lender’s credit assessment or approval process.
Principal and interest form the core repayment to the lender, but homeowners typically face additional recurring costs. Council rates, water charges, building insurance, strata levies and maintenance can significantly affect the total monthly cost of owning a property.
Purchase expenses are separate again. Depending on the transaction, these may include transfer duty, conveyancing, building and pest inspections, registration charges, lender fees and moving costs. These costs are not automatically included in the loan repayment and must be budgeted for separately.
The estimated base loan is the property price minus the entered deposit. Purchase costs paid separately do not reduce the loan unless additional cash is contributed.
The entered rate is held constant for the calculation. A variable rate can rise or fall over time, while a fixed rate usually applies only for its agreed fixed period.
A longer term generally produces a smaller scheduled repayment but allows interest to accrue for more years. A shorter term requires larger repayments and may reduce total interest.
Monthly, fortnightly and weekly schedules divide the loan into different payment periods. The lender’s method should be checked before assuming that a different frequency will create an extra annual repayment.
A true equivalent fortnightly repayment is calculated over 26 payment periods per year. This differs from dividing a quoted monthly repayment by two and paying that amount every fortnight.
Twelve monthly repayments contain 24 half‑monthly amounts. Paying half the monthly figure 26 times contributes two additional half‑payments— effectively one extra monthly repayment each year. It is this larger annual total, not the word “fortnightly,” that accelerates repayment.
Ask the lender whether its fortnightly amount is an equivalent scheduled repayment or half of the monthly repayment before comparing potential savings.
APRA requires regulated authorised deposit‑taking institutions to assess residential mortgage serviceability using a buffer of at least three percentage points above the loan rate, unless APRA specifies otherwise. The higher assessment rate helps test whether the borrower could manage repayments under financial pressure.
The assessment rate is not the rate initially charged on the loan. Lenders also consider income, expenses, liabilities, dependants and their own credit policies. See APRA’s Credit Risk Management standard.
The page’s stress test serves a different purpose. It shows how the entered loan would behave if the interest rate rose by the selected amount and then remained at that higher level.
Loan‑to‑value ratio compares the loan with the property value accepted by the lender. For example, if an $825,000 property is purchased with a $165,000 deposit, the base loan is $660,000 and the initial LVR is 80%, assuming the lender accepts the purchase price as the property value.
LMI may be required when the LVR is above 80%, although lender rules, professional concessions and eligible government guarantee schemes can produce different outcomes. LMI protects the lender if a default and subsequent sale leave a shortfall; it does not protect the borrower.
The premium may be paid from available funds or added to the loan when permitted. Capitalising it increases both the balance and the resulting LVR. Obtain an actual quote rather than relying on a generic percentage.
MoneySmart provides further information about deposits, LVR and lenders mortgage insurance.
Changing the deposit alters the starting loan balance. Changing the term affects how quickly that balance must be repaid. The comparison table holds the property price and interest rate constant so that the effects of those two inputs are easier to see.
The lowest displayed monthly repayment is not necessarily the least expensive option. Compare the initial cash required, regular repayment and total interest together.
A qualifying extra repayment reduces principal earlier than the standard schedule. Future interest is then calculated on a smaller balance, which may reduce both total interest and the time needed to repay the loan.
The result assumes that additional payments continue as entered and are applied to principal without fees. Actual products may restrict extra repayments during fixed‑rate periods or impose conditions on redraw access.
MoneySmart recommends checking loan conditions before relying on extra repayments. See its guide to paying off a mortgage faster.
This calculator answers a defined mathematical question: what repayment results from the entered loan amount, rate, term and frequency? It does not determine whether a household can afford that repayment or whether a lender will approve it.
A lender examines verified income, living expenses, existing debts, credit limits, credit history, deposit sources and the proposed security property. It may also apply income discounts, expense benchmarks, rate floors and other policies.
MoneySmart similarly describes its mortgage calculator as a model rather than a prediction. Review the assumptions in the MoneySmart mortgage calculator.
It models principal and interest using the entered loan amount, rate, term and repayment frequency. Entered council charges, insurance, strata fees and LMI allocations are shown separately from the loan repayment.
The lender may calculate interest daily, use different payment dates, apply fees or rounding, or use another rate. Variable‑rate changes and the actual settlement date can also alter the schedule.
Not necessarily. A true equivalent fortnightly amount may produce a similar annual total to monthly repayments. Paying half the monthly amount 26 times produces a larger annual total and can therefore repay the loan faster.
No. The result depends on the lender’s accepted property value, final loan balance and policy. Any fees or LMI capitalised into the loan can also affect the final LVR.
No. Transfer duty depends on the state or territory, property, purchase price and buyer eligibility. Use the relevant government revenue calculator for a current estimate.
Some fixed‑rate loans permit limited extra repayments while others impose restrictions or break costs. Check the loan contract or ask the lender before relying on the projected saving.