True wellbeing begins at home.
Home Loan Repayment Calculator
Calculate your monthly, fortnightly and weekly repayments. See the impact of rate changes, offset accounts and extra repayments on your loan.
| Rate | Monthly | Fortnightly | Weekly |
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| Year | Principal paid | Interest paid | Balance |
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Understanding your home loan repayments
Your home loan repayment comes down to three things: how much you borrow, the interest rate, and how long you take to pay it back. Even a 0.5% difference in rate or a five-year change in term can shift your monthly commitment by hundreds of dollars - which is why comparing lenders and loan structures matters more than most borrowers realise.
This calculator gives you a clear starting point, but your actual repayment depends on the loan product you choose. Features like offset accounts, redraw facilities, and the ability to make extra repayments without penalty all affect the true cost of your loan over time. A loan with a slightly higher headline rate but a full offset account can end up costing less than a cheaper basic product - especially if you keep savings in the offset. If you're buying your first home, refinancing an existing loan, or structuring an investment property, the right repayment structure makes a measurable difference to your financial position over decades.
At Lendology, we compare repayment structures across 60+ lenders - not just the headline rate, but the total cost including fees, features, and flexibility. For a precise figure based on your actual income, expenses, and the best rate available to you, book a chat with Jason or Steve. We'll show you what you can borrow and what it will cost - across multiple lenders, side by side.
Frequently asked questions
How are home loan repayments calculated in Australia?
Your repayment is calculated using the loan amount, interest rate and term. For principal and interest loans, lenders apply the standard PMT formula which determines how much you need to pay each month so the loan reaches zero by the end of the term. Australian lenders calculate interest daily on your outstanding balance and charge it monthly. In the early years most of each repayment covers interest, with the proportion shifting toward principal over time as the balance reduces.
How does an interest rate change affect my repayments?
On a variable rate loan, when the RBA moves the cash rate your lender typically adjusts your rate within a few days. Every 0.25% rate change on a $500,000 loan shifts your monthly repayment by roughly $75. A 1% increase adds approximately $300 per month. Use the rate change simulator tab to model exactly what a rate move would do to your loan. On a fixed rate loan, your repayment stays the same until the fixed term ends.
What is the difference between principal and interest and interest only?
Principal and interest (P&I) repayments reduce your loan balance each month, so you build equity and pay less interest over the life of the loan. Interest only (IO) repayments cover just the interest charge - the balance stays the same throughout the IO period. IO is common for investment loans to preserve cash flow and maximise tax deductions, but your total interest cost is higher and the full principal must eventually be repaid. Most owner-occupiers choose P&I. Lenders also tend to charge a slightly higher rate for interest only loans.
How does an offset account reduce my home loan?
An offset account is a transaction account linked to your home loan. The balance in the offset reduces the amount your interest is calculated on, dollar for dollar. If you have $80,000 in an offset account on a $500,000 loan, interest is calculated on $420,000 only. Your minimum repayment amount stays the same, but more of each payment goes to reducing the principal rather than covering interest. Over a 30-year loan, a consistently maintained offset of $80,000 can save over $100,000 in total interest and cut years off the loan term.
How much can I save by making extra repayments?
Extra repayments have a compounding effect that grows significantly over time. On a $500,000 loan at 6.29% over 30 years, paying an extra $500 per month can shorten your loan by approximately 8 years and save over $150,000 in interest. Even $200 extra per month makes a meaningful difference. Use the additional options tab above to model your specific amount. Note that some fixed rate loans restrict or charge fees for extra repayments, so it's worth checking your loan terms before committing to a strategy.