How to use the Home Loan Calculator
- 1 Enter the loan amount you plan to borrow.
- 2 Enter the interest rate and the loan term, usually 30 years.
- 3 Choose monthly, fortnightly or weekly repayments.
- 4 Pick principal and interest or interest only, then read the repayment and the total interest.
Worked example
$600,000 at 6% over 30 years. Monthly principal and interest repayments are about $3,597.30, with roughly $695,029 of interest over the loan. Fortnightly repayments are about $1,659.50. On interest only, the monthly repayment is $3,000, and the full $600,000 is still owed when the interest-only period ends.
Features
Monthly, fortnightly or weekly
Match the repayment schedule to your pay cycle and compare the totals.
Interest-only option
See how much lower interest-only repayments are, and that the full loan is still owed afterwards.
Total interest
The total over the loan term shows the true cost of a rate or term.
When to use it
Borrowing power check
Work out repayments on different loan sizes before you talk to a lender or broker.
Refinancing
Compare your current rate with a new offer on the same balance to see the monthly saving.
Investors
Compare interest-only and principal and interest repayments on an investment loan.
Rate buffer
Lenders assess loans at a rate about 3 percentage points higher. Add 3% to see if you could still manage.
Frequently asked questions
How are home loan repayments calculated?
With the standard formula: loan × r ÷ (1 − (1 + r)^−n), where r is the annual rate divided by the number of repayments a year and n the total number of repayments.
Do fortnightly repayments save money?
Paying half the monthly amount each fortnight adds up to 13 monthly repayments a year and saves interest. Paying the fortnightly amount calculated here saves a little because interest is charged on a lower balance sooner.
Does this include fees or LMI?
No. Lenders mortgage insurance, establishment fees and stamp duty are extra. If LMI is added to the loan, include it in the loan amount.
What is an interest-only loan?
You pay only interest for a set period, often up to 5 years, then switch to principal and interest at a higher repayment.
Why might my bank's figure be different?
Banks calculate interest daily and may round repayments up. Use this as an estimate and confirm with your lender.
How much can I borrow?
Lenders look at your income, expenses, existing debts and the deposit, and test whether you could still repay if rates rose by about 3 percentage points. Use this calculator to check the repayment on the amount you are aiming for before you apply.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated