Loan Repayment Calculator
The most common question we hear from buyers is a simple one: what will this actually cost me each month? It’s the right place to start. Our free loan repayment calculator gives you an instant estimate based on your loan amount, interest rate and term so you can plan with real numbers before you commit.
But here’s the thing worth knowing: the repayment figure you see in any calculator is only as good as the interest rate behind it. Even a 0.5% difference on a $600,000 loan adds up to tens of thousands of dollars over the life of the loan. Getting the right rate, from the right lender, for your specific situation is where a broker earns their place.
Your monthly repayment isn’t just one number. It’s the result of four levers working together. Adjust any one of them and the outcome changes, sometimes significantly.
| Factor | Example of Change | Effect on Monthly Repayment |
|---|---|---|
| Loan Amount | $600,000 vs $550,000 | Lower loan amount reduces repayment directly. |
| Interest Rate | 6.5% vs 6.0% | A 0.5% rate cut saves approximately $180/month on $600,000 over 30 years. |
| Loan Term | 30 years vs 25 years | A shorter term increases monthly repayment but cuts total interest significantly. |
| Repayment Type | P&I vs interest-only | Interest-only lowers monthly cost but doesn't reduce the loan balance. |
*Figures are illustrative. Actual repayments depend on your lender, loan structure and individual circumstances.
Weekly, Fortnightly or Monthly
More than most people realise. The way repayment frequency works in Australia is simple: if you pay fortnightly, you make 26 half-payments per year instead of 12 full monthly payments. That’s the equivalent of 13 monthly payments in a year rather than 12. That one extra payment goes straight to your principal.
Weekly repayments work on the same principle. The more frequently interest is calculated against a lower balance, the less it compounds over time. It won’t transform your loan overnight, but across 25 to 30 years the cumulative effect is real.
$4,108 × 12/yr – standard monthly repayments$948 x 52/yr – same money, split differently
0
10
20
30
*Fortnightly assumes half your monthly repayment paid 26 times a year. The extra full payment lands straight on the principal – you barely
feel it week to week. Compare frequencies with ASIC’s MoneySmart calculator, or ask us to run your numbers.
$948 x 52/yr – same money, split differently
0
10
20
30
*Fortnightly assumes half your monthly repayment paid 26 times a year. The extra full payment lands straight on the principal – you barely
feel it week to week. Compare frequencies with ASIC’s MoneySmart calculator, or ask us to run your numbers.
$2,054 × 26/yr – same money, paid more frequently
0
10
20
30
*Fortnightly assumes half your monthly repayment paid 26 times a year. The extra full payment lands straight on the principal – you barely
feel it week to week. Compare frequencies with ASIC’s MoneySmart calculator, or ask us to run your numbers.
Extra repayments permanently reduce your loan balance. Every dollar you pay above the minimum goes directly to principal, which means less interest accrues from that point on. On a variable rate loan, there are usually no limits or fees on extra repayments. Fixed rate loans typically restrict this, so it’s worth checking before you choose a fixed term.
Offset accounts work differently. The balance in your offset account reduces the loan balance that interest is calculated on, without actually reducing the loan itself. So if you have $50,000 in offset against a $500,000 loan, you only pay interest on $450,000. The money stays accessible, which is why many borrowers prefer offset to extra repayments for surplus funds.
Extra repayments
Permanently reduces loan balance
Low on fixed, high on variable
Paying off faster
Offset account
Reduces interest while funds sit there
High, funds accessible anytime
Keeping cash accessible while saving interest
Both combined
Maximum interest reduction
Depends on loan type
Borrowers with surplus cash and a variable loan
The calculator gives you a figure. But the more useful question is: could that figure be lower?
The answer is almost always yes, with the right lender and the right structure. Australia has well over 100 lenders, each with different rates, serviceability policies and loan features. The gap between the most competitive variable rates and what the average borrower ends up on is often 0.5% or more, and on a $600,000 loan that’s around $180 per month, every month, for 30 years.
At Penny, we search across a 50+ lender panel to find the home loan that brings your repayment as low as it can legitimately go, based on your income, deposit, property and goals. We’ve settled 1,000+ loans, and we work at no cost to you (Penny is paid by the lender, not the borrower). Our team goes beyond the numbers to understand what you’re trying to build, then finds finance that fits. We’re recognised as the #1 female finance broker in Australia (confirm exact award wording before publishing), and we put that expertise to work for every client, whatever stage they’re at.
Whether you’re buying your first home, refinancing an existing loan, or planning an investment property purchase, the repayment calculator is the start of the conversation, not the end of it.
Your repayment is calculated using your loan amount, interest rate, loan term and repayment type. For a standard principal and interest loan, each payment covers that period’s interest charge plus a portion of the principal. In the early years of a loan, most of each payment goes to interest. As the balance reduces over time, the principal portion grows and the interest portion shrinks. The loan repayment calculator above does this calculation for you instantly based on the inputs you enter.
The interest rate is the headline rate used to calculate your repayments. The comparison rate includes most fees and charges associated with the loan (such as application fees and ongoing monthly fees) and expresses the true annual cost as a single percentage. It’s calculated on a standardised $150,000 loan over 25 years, so it’s a useful comparison tool but won’t exactly reflect your situation. When comparing loans, always look at both, and check what fees are and aren’t included in the comparison rate.
Fortnightly is generally better than monthly if your cash flow allows it. Because you make 26 half-payments per year rather than 12 full payments, you end up making one extra full payment annually, which reduces your principal faster and saves interest over time. Weekly works on the same principle. Monthly is fine if fortnightly doesn’t suit your pay cycle, but if you’re paid weekly or fortnightly, matching your repayment frequency to your income timing makes it easier to manage.
It depends on your loan amount, rate, remaining term and how much extra you pay. Even small amounts, made consistently in the early years of the loan when interest makes up the bulk of each repayment, can save thousands over the life of the loan and cut years off your term. A $200 per month extra repayment on a $600,000 loan at 6% over 30 years can shave several years off the term. Use the borrowing capacity calculator alongside this one to get a fuller picture of your position.
An offset account is a transaction account linked to your home loan. The balance in it offsets your loan balance for interest calculation purposes. If you have $40,000 in offset against a $580,000 loan, you only pay interest on $540,000. The more you keep in the account, the less interest accrues. Unlike extra repayments, the money stays accessible. Not all loans include offset accounts, and some charge a fee, so it’s worth confirming whether the interest saving outweighs any additional cost before you choose a loan with this feature.
Often, yes. If your current interest rate is higher than what’s available to you now, refinancing to a lower rate can reduce your repayment immediately. The saving depends on the rate difference, your remaining loan balance and the costs of switching (which can include discharge fees, application fees and sometimes break costs on fixed loans). A broker can run the numbers and tell you whether a refinance makes sense for your situation, and what the break-even point looks like. It’s one of the most common things we help clients think through.
The number in the calculator is a starting point. The real question is what rate is available to you, and whether the loan structure you’re in (or about to take out) is the right fit for where you want to go.
At Penny, we go beyond the numbers. We look at your full picture, match you to the right lender from our 50+ panel, and set up your loan in a way that gives you the best repayment now and the most flexibility later. At no cost to you.
Check your upfront costs with our stamp duty calculator, then explore your full home loans options with the Penny team.
Book a free 15-minute discovery call or call us on 1800 958 021.
