Home Loan Repayment Calculator
Australia 2026

Standard principal & interest (P&I) repayments use the amortisation formula. Each repayment covers the interest charged for the period plus a portion of the principal, so the loan steadily reduces over the term. The exact split changes every month, early on, most of your payment is interest; later, most goes to principal. Interest-only loans simply charge interest each period without reducing the loan balance.

Use a real, current owner-occupier variable rate quoted by a lender, for May 2026, big-four owner-occupier P&I variable rates sit around 5.74%–5.83% p.a. We default the calculator to 5.79%. If you’re comparing scenarios, also try 1% above and 1% below to see how sensitive your repayments are to rate moves.

Same total cost, but if you pay weekly or fortnightly using the “true” divide (annual repayment ÷ 26 fortnights), you make the equivalent of one extra monthly payment per year, which can shave years and tens of thousands of dollars off a 30-year loan. Some lenders quote “equivalent fortnightly” = monthly ÷ 2; that one is identical to monthly.

Even small extra repayments can save tens of thousands. Example: an extra $200/month on a $600,000 loan at 5.79% over 30 years saves around $99,000 in interest and pays the loan off about 4 years and 7 months earlier. Use the “Extra repayment” input above to model your own situation.

P&I means each repayment reduces the loan balance, by the end of the term the loan is paid off. Interest-only means you only pay the interest portion (no balance reduction), so repayments are lower for that period (typically 1–5 years), but you’ll pay more total interest over the life of the loan.

No. It’s an indicative estimate based on the rate, term, and amount you enter. Real lender quotes account for fees, LVR pricing tiers, offset accounts, package discounts, and your full credit profile. When you’re ready, get connected with an independent broker who’ll model real lender quotes for your situation.

The interest rate is what’s charged on the loan balance. The comparison rate also includes most fees (establishment, ongoing, discharge) and is calculated on a $150,000 loan over 25 years, so it’s a fairer apples-to-apples figure. A loan with a low headline rate but high fees can have a higher comparison rate than one with a higher headline rate and no fees.

Lenders Mortgage Insurance (LMI) is generally required when you borrow more than 80% of the property value (LVR > 80%). It protects the lender, not you, and can add tens of thousands to your loan. First home buyer schemes, guarantor loans, and certain professional packages can let you avoid LMI even with a smaller deposit. Use our LMI calculator to estimate the cost.