Australia Loan Calculator
Calculate your home, car, or personal loan repayments. Add extra lump sums or ongoing payments to see how much interest and loan term you save.
Extra Repayments
Model the impact of voluntary payments
Toggle extra repayments to simulate accelerated paydown speed, calculating aggregate interest and timeline reductions instantly.
Estimated Repayment Outcomes
at 6% over 30 years
over 360 intervals
First Repayment Composition
Amortisation
First 12 Cycles| # | Principal | Interest |
|---|---|---|
| 1 | $298.65 | $1,500.00 |
| 2 | $300.14 | $1,498.51 |
| 3 | $301.65 | $1,497.01 |
| 4 | $303.15 | $1,495.50 |
| 5 | $304.67 | $1,493.98 |
| 6 | $306.19 | $1,492.46 |
| 7 | $307.72 | $1,490.93 |
| 8 | $309.26 | $1,489.39 |
| 9 | $310.81 | $1,487.84 |
| 10 | $312.36 | $1,486.29 |
| 11 | $313.92 | $1,484.73 |
| 12 | $315.49 | $1,483.16 |
Rate Sensitivity
Loan Types Explained
- Fixed Rate: Locked rate for 1–5 years - certainty and stability.
- Variable Rate: Moves with the RBA cash rate - flexibility with offset accounts.
- Split Loan: Part fixed, part variable - balance both worlds.
- Interest Only: Pay just interest for a set period - popular with investors.
Before You Borrow
- Aim for a 20% deposit to avoid Lenders Mortgage Insurance (LMI).
- Check your credit score - lenders use it to set your rate.
- Reduce existing debts to improve your borrowing capacity.
- Explore First Home Owner Grant (FHOG) or stamp duty concessions.
Money-Saving Tips
- Switch to fortnightly payments - equivalent to one extra month per year.
- Use an offset account to reduce the daily interest calculated.
- Make extra repayments whenever possible - even small amounts help.
- Review and refinance annually - a 0.5% rate cut saves thousands.
Disclaimer: This calculator provides repayment estimates for informational purposes only and does not constitute financial advice. Calculations assume constant interest rates and exclude bank fees, split structures, and loan setup costs. Always consult a licensed mortgage broker or financial adviser before making borrowing decisions.
Frequently Asked Questions
Repayment Frequency Comparison ($500,000 at 6%, 30 Years)
| Frequency | Repayment | Total Interest | Interest Saved |
|---|---|---|---|
| Monthly | $2,998 | $579,191 | - |
| Fortnightly | $1,383 | $489,521 | $89,670 |
| Weekly | $691 | $487,923 | $91,268 |
Understanding Loan Repayments & Interest
How Bank Interest Compounds
In Australia, home loan interest is calculated on your outstanding daily balance and charged to your account monthly. During the early years of a 30-year mortgage, the vast majority of each repayment covers interest, with only a small portion reducing your principal. This front-loading effect means that extra repayments made early in the loan term have a dramatically larger impact on total interest savings.
Fortnightly & Weekly Payment Strategies
Switching from monthly to fortnightly payments is one of the simplest ways to accelerate your mortgage payoff. Because there are 26 fortnights in a year (equivalent to 13 monthly payments), you effectively make one extra full payment per year. On a $500,000 loan at 6%, this strategy alone can save over $90,000 in interest and shave approximately 5 years off the loan term.
Extra Repayments
Every additional dollar paid above your minimum repayment goes directly toward reducing your principal balance. Because interest is calculated on the outstanding balance, each extra dollar creates a compounding savings effect. Even modest additional payments of $100 per month can save tens of thousands of dollars over the life of a typical 30-year home loan.
Offset Accounts
A mortgage offset account is a savings account linked to your home loan. The balance in your offset account is deducted from your outstanding loan balance when calculating daily interest. For example, if you owe $400,000 and have $50,000 in your offset account, you only pay interest on $350,000. Unlike extra repayments, offset funds remain accessible for withdrawal at any time.
Interest Rate Sensitivity
Even small changes in interest rates can have significant effects on your total repayments. A 0.25% rate increase on a $500,000 loan adds approximately $80 per month to your repayments and over $28,000 to total interest over 30 years. Use the interest rate slider to model different rate scenarios and stress-test your budget against potential Reserve Bank of Australia (RBA) rate changes.
Your Privacy
WagePad performs all loan calculations directly on your device. No financial details, loan amounts, interest rates, or personal information are ever sent to our servers, stored in databases, or shared with third parties. Your financial data stays with you.
Rate Impact on a $500,000 Loan (30 Years)
4% Rate
$2,387/mo
$359K total interest
5% Rate
$2,684/mo
$466K total interest
6% Rate
$2,998/mo
$579K total interest
7% Rate
$3,327/mo
$698K total interest
Disclaimer: This calculator provides repayment estimates for informational purposes only and does not constitute financial advice. Calculations assume constant interest rates and exclude bank fees, split structures, and loan setup costs. Always consult a licensed mortgage broker or financial adviser before making borrowing decisions.