Mortgage Repayment Calculator for Australian Buyers
Work out what a home or investment loan will actually cost you to repay. Enter your loan amount, term, interest rate and repayment type, and this free calculator shows your regular repayment, the total interest you will pay, and how your balance falls over the life of the loan.
It is built for Australian borrowers, with principal and interest or interest-only options, and weekly, fortnightly or monthly repayments, so the figures match how lenders here actually structure a loan.
| Year | Total Payment | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $37,924 | $5,589 | $32,335 | $494,411 |
| 2 | $37,924 | $5,963 | $31,961 | $488,448 |
| 3 | $37,924 | $6,362 | $31,562 | $482,086 |
| 4 | $37,924 | $6,788 | $31,136 | $475,298 |
| 5 | $37,924 | $7,243 | $30,681 | $468,055 |
| 6 | $37,924 | $7,728 | $30,196 | $460,327 |
| 7 | $37,924 | $8,246 | $29,678 | $452,081 |
| 8 | $37,924 | $8,798 | $29,126 | $443,283 |
| 9 | $37,924 | $9,387 | $28,537 | $433,896 |
| 10 | $37,924 | $10,016 | $27,908 | $423,881 |
| 11 | $37,924 | $10,686 | $27,238 | $413,194 |
| 12 | $37,924 | $11,402 | $26,522 | $401,792 |
| 13 | $37,924 | $12,166 | $25,758 | $389,626 |
| 14 | $37,924 | $12,981 | $24,944 | $376,646 |
| 15 | $37,924 | $13,850 | $24,074 | $362,796 |
| 16 | $37,924 | $14,777 | $23,147 | $348,018 |
| 17 | $37,924 | $15,767 | $22,157 | $332,251 |
| 18 | $37,924 | $16,823 | $21,101 | $315,428 |
| 19 | $37,924 | $17,950 | $19,974 | $297,478 |
| 20 | $37,924 | $19,152 | $18,772 | $278,326 |
| 21 | $37,924 | $20,435 | $17,490 | $257,892 |
| 22 | $37,924 | $21,803 | $16,121 | $236,089 |
| 23 | $37,924 | $23,263 | $14,661 | $212,826 |
| 24 | $37,924 | $24,821 | $13,103 | $188,004 |
| 25 | $37,924 | $26,484 | $11,441 | $161,521 |
| 26 | $37,924 | $28,257 | $9,667 | $133,264 |
| 27 | $37,924 | $30,150 | $7,774 | $103,114 |
| 28 | $37,924 | $32,169 | $5,755 | $70,945 |
| 29 | $37,924 | $34,323 | $3,601 | $36,622 |
| 30 | $37,924 | $36,622 | $1,302 | $0 |
Principal & Interest: Regular repayments that pay down both the loan principal and interest. The loan balance decreases over time until it reaches $0 at the end of the term.
Interest Only: Repayments only cover the interest charges. The loan principal remains unchanged throughout the term and must be paid in full at the end or refinanced.
Note: This calculator provides estimates only. Actual repayments may vary based on your lender's policies, fees, and rate changes. Confirm your figures with your lender or a licensed mortgage broker before you commit.
How the mortgage repayment calculator works
- 1
Enter your loan amount
This is the amount you are borrowing, not the property price. If you are putting down a 20% deposit on a $625,000 property, your loan amount is $500,000.
- 2
Set your loan term
Most Australian home loans run over 30 years. A shorter term means higher repayments but far less interest paid over the life of the loan.
- 3
Enter your interest rate
Use your actual or quoted rate. Even a small change in the rate moves your repayment and your total interest noticeably, so it is worth testing a few figures.
- 4
Choose your repayment type
Principal and interest pays the loan down to zero by the end of the term. Interest only keeps repayments lower for a set period but leaves the balance untouched, which investors sometimes use for cash flow.
- 5
Pick your repayment frequency
Switch between weekly, fortnightly and monthly. Paying fortnightly rather than monthly squeezes in the equivalent of an extra month of repayments each year, which chips away at the balance faster.
A worked Australian example
Say you borrow $500,000 over a 30 year term at 6.5% per annum, on principal and interest repayments. Here is how it breaks down on a monthly basis.
- Loan amount borrowed
- $500,000
- Monthly repayment
- $3,160
- Total interest paid over 30 years
- $637,722
- Total amount repaid (principal plus interest)
- $1,137,722
On a $500,000 loan at 6.5% over 30 years, your monthly repayment works out to about $3,160, or roughly $729 a week. Over the full term you repay around $1,137,722, of which $637,722 is interest. In other words, you pay back more than double what you borrowed once interest is added in. That is exactly why dropping the rate, shortening the term or making extra repayments can save tens of thousands of dollars, and the calculator lets you test each of those.
How mortgage repayments are calculated
A principal and interest repayment is worked out so that the same fixed amount, paid every period, clears the loan to zero by the end of the term. Early on, most of each repayment is interest because the balance is large. As the balance falls, more of each repayment goes to principal, which is why a loan pays down slowly in the first few years and faster towards the end.
The three levers that move your repayment are the loan amount, the interest rate and the term. The total interest you pay is simply the sum of every repayment minus the amount you borrowed. Because that total is so sensitive to the rate, it is worth checking what a 0.25% or 0.50% difference does before you lock anything in with a lender.
Principal and interest versus interest only
With principal and interest, every repayment reduces the balance, so you build equity and the loan eventually clears. This is the standard choice for owner-occupiers and the cheapest option over the full life of the loan.
Interest-only repayments cover only the interest for a set period, commonly one to five years, so they are lower but the balance does not move. Some investors use interest only to keep holding costs down and to maximise deductible interest, but repayments jump once the interest-only period ends and you pay more interest overall. It is a cash flow decision, not a saving, so weigh it against your strategy.
How extra repayments and an offset can help
Paying a little more than the minimum, or switching from monthly to fortnightly repayments, can shave years off the loan and save a large amount of interest, because every extra dollar comes straight off the balance that interest is charged on. The calculator has an additional repayment field so you can see the effect for your own numbers.
An offset account works in a similar way. The balance sitting in your offset is deducted from your loan balance before interest is calculated, so a $30,000 offset balance on a $500,000 loan means you are only charged interest on $470,000. Unlike extra repayments, the money in an offset stays available to you, which is why many Australian borrowers prefer it.
What the calculator does not include
This calculator focuses on your scheduled repayments and interest. It does not include upfront costs such as stamp duty, lenders mortgage insurance if your deposit is under 20%, or conveyancing, and it does not include ongoing account or package fees that some lenders charge. Treat the result as the repayment side of the picture, not your total cost of buying.
Interest rates also change over the life of a loan, and a quoted rate today may not be the rate you pay in a few years. Use the figures here as an estimate to compare scenarios, and confirm your actual repayment, fees and rate with your lender or a licensed mortgage broker before you commit.
Frequently asked questions
How much would repayments be on a $500,000 loan in Australia?
On a $500,000 loan over 30 years at 6.5% per annum, principal and interest repayments work out to about $3,160 a month, or roughly $729 a week. Over the full term you would repay around $1,137,722, including about $637,722 in interest. Change the rate or term in the calculator to match your own loan.
How is a mortgage repayment calculated?
A principal and interest repayment is a fixed amount, paid each period, set so the loan reaches zero by the end of the term. It depends on three things: the loan amount, the interest rate and the term. Early repayments are mostly interest, and the principal portion grows as the balance falls.
Is it better to pay weekly, fortnightly or monthly?
Fortnightly repayments usually clear the loan faster than monthly ones. There are 26 fortnights but only 12 months in a year, so paying half the monthly amount every fortnight squeezes in the equivalent of an extra month of repayments each year, which reduces both the term and the total interest.
Should I choose principal and interest or interest only?
Principal and interest is cheaper over the life of the loan because every repayment reduces the balance and builds equity. Interest only keeps repayments lower for a set period but leaves the balance unchanged and costs more interest overall. Investors sometimes use it for cash flow, but it is not a saving.
How much can I save by making extra repayments?
Extra repayments come straight off your loan balance, so they reduce the interest charged on every period after that. Even modest extra payments can cut years off a 30 year loan and save tens of thousands in interest. Use the additional repayment field in the calculator to see the effect on your own loan.
Does this calculator include fees and stamp duty?
No. It calculates your scheduled repayments and total interest only. It does not include upfront costs like stamp duty, lenders mortgage insurance or conveyancing, or ongoing lender fees. Always confirm your full costs, fees and the actual rate with your lender or mortgage broker before committing.
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