Australian Home Loan Repayment Calculator

The monthly repayment comes from the standard amortisation formula and is rounded to the cent. Weekly and fortnightly amounts are then converted from that monthly figure, because that is what Australian lenders document. Interest is worked out daily on your balance at your rate divided by 365, and the month of daily interest is added to the loan on the last day of each calendar month. Lenders vary on the exact day they charge interest, so your statement can differ by a few dollars over the life of the loan. Repayments, extra repayments and offset balances are simulated day by day across the whole loan, so their effect on interest and payoff time is exact for the inputs given.

Because lenders do it in two different ways and the difference is large. Dividing the yearly total by 26 keeps your yearly amount the same as paying monthly. Halving the monthly repayment and paying it 26 times means about 13 monthly repayments a year, so you pay roughly 8% more each year and clear the loan years earlier. Some lenders have no fortnightly repayment amount at all, because the contract is monthly and paying fortnightly is simply how you fund it. Check your loan documents for which one applies to you.

A little. Interest is charged on your balance each day, so paying earlier in the month leaves a smaller balance for the rest of it. On a $600,000 loan at 6% over 30 years, keeping your yearly total the same and moving from monthly to fortnightly is worth roughly $12,500 and finishes the loan about four months early, and moving to weekly is worth roughly $14,600 and about five months. The much bigger saving people attribute to paying fortnightly is usually the other thing: paying half a monthly repayment 26 times a year, which is an extra month of repayments every year rather than a timing effect.

Because the minimum repayment and the interest are worked out on different calendars. The monthly repayment is the standard formula every lender quotes, which assumes twelve equal months. Interest is charged on the actual days in each month, leap days included, which over a long loan adds up to a little more than the formula allows for. So at exactly the minimum, the balance outlasts the term by one repayment and the last one is a smaller closing payment. Lenders see the same thing, and most borrowers never notice because paying even a few dollars above the minimum, a rate change, or a single extra repayment absorbs it.

Interest is worked out each day on your loan balance less your offset balance, so money sitting in the offset reduces that day’s interest. Interest you do not pay is never added to the loan, so your repayment clears more principal and the loan ends earlier.

Yes. Choose "A loan I already have" and enter the balance your lender shows today, the years and months left on the term, your rate and the repayment your lender actually debits. Nothing about the loan’s history is needed, because none of it changes a future repayment. The calculator runs forward from today on those figures, shows what the minimum repayment for that term would be beside the amount you pay, and if your repayment is too small to cover the interest it says so rather than showing a payoff date. Interest accrued since your last statement is not included, which is at most one month of interest.

A lump sum is paid straight off the loan on the date you choose. From that day the balance is lower, so every day of interest after it is lower too, and the loan ends sooner. The money is gone into the loan and cannot be taken back. An offset account is savings held against the loan: interest is charged each day on the loan balance less the offset balance, so the saving is similar while the money sits there, but it stays yours to spend. The calculator models one lump sum and a 100% offset, and measures both against the same loan with neither.

The loan reverts to principal and interest over the remaining term, and the new repayment is worked out on what you still owe at that point, which is what lenders do. If you paid nothing off during the interest-only period that is the full amount borrowed, so the repayment steps up noticeably because the same principal is now repaid over fewer years. Any extra repayments you made during the period reduce it. During the interest-only period itself the calculator pays the interest that actually accrued between repayment dates, so the amount varies a little with the days in each month and the balance does not drift.