How to use the home loan repayment calculator (australia)
- Enter the property price and your deposit, either in dollars or as a percentage. The loan amount and LVR update automatically.
- Enter the interest rate your lender has quoted and choose the loan term.
- Choose monthly, fortnightly or weekly repayments. For fortnightly or weekly, choose true fortnightly/weekly or the accelerated "half monthly" method.
- Optionally add an interest-only period, an extra repayment per period and your settlement date.
- Review the repayment, total interest, payoff date, charts and schedule, then download the schedule as CSV.
Worked example
$750,000 property, 20% deposit, 6.00% over 30 years
The loan is $600,000 (LVR 80%). Monthly repayments are $3,597.30, with total interest of $695,031.35 and $1,295,031.35 repaid over 30 years. True fortnightly repayments are $1,659.50 and cost about the same. Paying half the monthly amount each fortnight ($1,798.65, the accelerated method) repays the loan in 638 fortnights, about 24.5 years, and total interest falls to $546,158.61, about $148,873 less than monthly.
How it works
Principal and interest repayments use R = P × r / (1 − (1 + r)−n), where P is the loan, r the annual rate ÷ periods per year (12, 26 or 52) and n the number of repayments. Accelerated fortnightly and weekly repayments are half or a quarter of the monthly repayment. Each period interest is the balance × r, rounded to the cent, and the rest of the repayment reduces the balance. During an interest-only period the repayment is P × annual rate ÷ periods per year; afterwards the loan is repaid over the remaining term.
Assumptions
- The rate you enter stays the same for the whole loan. Variable rates change over time.
- Interest compounds once per repayment period. Most Australian lenders calculate interest daily and charge it monthly, so real figures differ slightly.
- Extra repayments are applied to the balance with each repayment, from the end of any interest-only period.
- Stamp duty, lenders mortgage insurance (LMI), establishment and ongoing fees are not included.
Frequently asked questions
Are fortnightly repayments cheaper than monthly?
Only if you pay more in total. A true fortnightly repayment (the amount that repays the loan in 26 repayments a year) costs about the same as monthly. Paying half the monthly repayment every fortnight means 26 half-payments, or 13 monthly repayments a year, which repays the loan years sooner.
What happens after an interest-only period?
Repayments switch to principal and interest over the remaining term, so they rise noticeably. The calculator shows both amounts and the extra interest paid.
Does this use current interest rates?
No. It does not fetch or assume market rates. Enter the rate from your lender or broker.
What is LVR and why does it matter?
Loan-to-value ratio is the loan divided by the property value. Above 80% most lenders charge lenders mortgage insurance, which is not included here.
Limitations
- An estimate, not a loan offer. Your lender’s figures are authoritative.
- Does not model rate changes, offset accounts or redraw. Use the offset calculator for offset accounts.
- The schedule uses periodic compounding rather than daily interest.