๐Ÿ‡ฆ๐Ÿ‡บ Australia
๐Ÿ‡บ๐Ÿ‡ธ United States๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom๐Ÿ‡ฉ๐Ÿ‡ช Deutschland๐Ÿ‡ท๐Ÿ‡บ ะ ะพััะธั๐Ÿ‡ฎ๐Ÿ‡ณ India๐Ÿ‡ฆ๐Ÿ‡บ Australia๐Ÿ‡จ๐Ÿ‡ฆ Canada๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand
Homeโ€บAustraliaโ€บMortgage Repayment Calculator

Mortgage Repayment Calculator Australia 2026

Calculate your home loan repayments at current rates. Compare monthly vs fortnightly payments. See how extra repayments save interest and years off your loan. Compare two rates side by side. Default rate based on RBA cash rate of 4.10% as at March 2026.

Calculate your home loan repayments
$
Total amount borrowed (excluding offset balance)
%
Annual variable or fixed rate (average ~6.45% as at March 2026)
years
Standard term is 25 or 30 years
Fortnightly = 26 payments/year (effectively 13 months)
โ€”

Try another scenario

How to Use This Calculator

Repayment tab

Enter your loan amount, interest rate, loan term, and repayment frequency (monthly, fortnightly, or weekly). The calculator shows your repayment per period, total amount repaid over the loan life, total interest paid, and the loan end date. Fortnightly repayments are calculated as (monthly × 12) / 26, which means you effectively make 13 months of payments per year.

Extra Repayments tab

Enter an additional extra repayment amount on top of your minimum required payment. See how much interest you save, how many years you cut off the loan, and the effective return on your extra payments compared to investing elsewhere.

Compare Rates tab

Enter two interest rates to compare side by side. See the monthly repayment difference, total interest difference over the loan life, the break-even period for switching costs (assuming $1,500 in refinancing costs), and the 5-year cost difference.

Share your result

All inputs are encoded in the URL. Click Share to send your exact calculation to your broker, partner, or financial adviser.

The Formula

Standard Amortization (PMT):
PMT = P × r × (1 + r)n / ((1 + r)n − 1)

Where:
P = Principal (loan amount)
r = Periodic interest rate (annual rate / periods per year)
n = Total number of payments (years × periods per year)

Frequency Conversion:
Monthly: r = annual rate / 12, n = years × 12
Fortnightly: payment = (monthly × 12) / 26 — effectively 13 months/year
Weekly: payment = (monthly × 12) / 52 — effectively 13 months/year

Total Interest:
Total Interest = (PMT × n) − P

Extra Repayment Savings:
Each extra dollar reduces principal immediately, so less interest accrues on subsequent payments. The calculator iterates month-by-month to compute the exact savings.

Worked Example

$600,000 Home Loan at 6.2%, 30 Years

A typical Australian home loan: $600,000 principal at 6.2% variable rate over 30 years, monthly repayments.

Step 1: Monthly repayment

Loan amount$600,000
Interest rate6.2% p.a.
Monthly rate6.2% / 12 = 0.5167%
Total payments30 × 12 = 360
Monthly repayment (PMT)$3,672

Step 2: Total cost of the loan

Total repaid$3,672 × 360 = $1,321,920
Total interest$1,321,920 − $600,000 = $721,920
Interest-to-principal ratio120% of loan amount

Step 3: With $500/month extra repayments

New monthly payment$3,672 + $500 = $4,172
New loan term~20 years (was 30)
Interest saved~$250,000
Years saved~10 years

Verdict: On a $600,000 loan at 6.2%, you pay almost as much in interest ($721,920) as the loan itself. Adding $500/month in extra repayments saves approximately $250,000 in interest and 10 years. Switching to fortnightly repayments alone (without paying extra) can save ~$100,000 and 5-7 years.

Australian Home Loan Rate Snapshot (March 2026)

RBA cash rate history (recent)
Date Cash Rate Change
17 March 2026 4.10% +0.25%
February 2026 3.85% +0.25%
Previous (held) 3.60% —

Source: Reserve Bank of Australia. Cash rate decisions affect variable home loan rates.

Average home loan rates (March 2026)
Rate Type Rate
Average variable rate (market) ~6.45%
Average new loan rate ~5.50%
Best available variable ~5.08%
Average loan size (new loans) $736,257

Sources: Finder.com.au, Money.com.au. Rates as at March 2026.

Principal & Interest vs Interest Only
Feature P&I Interest Only
Each payment covers Interest + principal Interest only
Loan balance Decreases over time Stays the same
Total interest paid Lower Higher
Common use Owner-occupiers Investors (for tax deductions)

Interest-only periods are typically 1-5 years, after which the loan reverts to P&I with higher repayments.

FAQ

The advertised rate (or headline rate) is the interest rate charged on your loan balance. The comparison rate includes the interest rate PLUS most fees and charges associated with the loan, expressed as a single percentage. By law, Australian lenders must display the comparison rate alongside the advertised rate. The comparison rate gives a more accurate picture of the true cost of the loan, though it is calculated on a $150,000 loan over 25 years and may not perfectly reflect your situation.
An offset account is a transaction account linked to your home loan. The balance in the offset account is deducted from your loan balance when calculating interest. For example, if you have a $500,000 loan and $50,000 in your offset account, you only pay interest on $450,000. This has the same effect as making extra repayments, but your money remains accessible. The interest savings are tax-free (since you are paying less interest rather than earning interest income). Offset accounts are most effective with variable-rate loans.
Fixed rates give certainty — your repayments stay the same for the fixed period (typically 1-5 years), protecting you from rate rises. However, you may miss out if rates fall, and most fixed loans limit extra repayments to $10,000-$20,000/year with break costs if you exit early. Variable rates move with the market, offer unlimited extra repayments, and give access to offset and redraw. Many Australians choose a split loan — fixing a portion for certainty while keeping the rest variable for flexibility. With the RBA cash rate at 4.10% as at March 2026, the decision depends on your expectations for future rate movements.
Lenders Mortgage Insurance (LMI) protects the lender if you default on the loan. It is required when your loan-to-value ratio (LVR) exceeds 80% — that is, when your deposit is less than 20% of the property value. LMI can cost from $5,000 to over $30,000 depending on the loan amount and LVR. To avoid LMI: save a 20% deposit, use a family guarantee (parents guarantee part of the loan using their property as security), or check government schemes like the First Home Guarantee which allows eligible first-home buyers to purchase with as little as 5% deposit without LMI.
You should review your home loan at least once a year, and especially after any RBA rate change. The “loyalty tax” is real — existing borrowers often pay higher rates than new customers at the same lender. Steps: (1) Check your current rate against market rates using comparison tools. (2) Call your lender and ask for a rate match or discount. (3) If they refuse, consider refinancing to a cheaper lender. Switching costs are typically $1,000-$2,000, which can be recouped within months if you save 0.25% or more. Even a 0.25% rate reduction on a $500,000 loan saves about $80/month.

Related Calculators

Income Tax Calculator
Calculate Australian income tax with Stage 3 tax cuts for FY 2025-26.
Stamp Duty Calculator
Calculate stamp duty on property purchases in every state and territory.
Capital Gains Tax Calculator
Calculate CGT on investment property with the 50% discount and main residence exemption.
Negative Gearing Calculator
Calculate the tax benefit of negative gearing on investment property.
GST Calculator
Calculate GST on goods and services. Inclusive and exclusive GST computation.
Superannuation Calculator
Project your super balance at retirement with employer and voluntary contributions.

Add This Calculator to Your Website

Embed the sum.money Mortgage Repayment Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/au/mortgage-repayment-calculator" width="100%" height="600"></iframe>