Mortgage Calculator with Extra Repayments

Why make extra home loan repayments?

When you take out a mortgage, you agree to make minimum monthly repayments that cover the principal and interest. With a standard home loan, 100% of your monthly repayments will go towards paying off the interest before you can start paying off the principal loan amount.

The interest you pay is based on your interest rate, which is calculated as a percentage of the remaining principal. If you start paying down the principal by making extra repayments on top of your standard payments, you will reduce the amount of interest you need to pay and shorten the life of the loan.

Making extra repayments can help you save tens of thousands in interest and reduce your home loan by years. 

Use the extra repayments calculator to see how much time and money you could save.

How does the extra repayments calculator work?

The extra repayment calculator works like the mortgage payment calculator, except that it will also take into account regular principal-only repayments. Simply enter the details of your home loan, as well as how much your extra repayments will be and after how many years you will start making them.

Use the loan balance chart to get a visual of how making extra repayments affects your mortgage. The earlier you start making these repayments, the more time and money you will save with your home loan. 

Your results will generate automatically when you enter your details into the calculator. You'll get an estimate of:

• Your minimum home loan repayment.
• Your total home loan repayment, including extra contributions.
• Total time saved by making extra repayments.
• Total interest saved by making extra repayments.

How accurate is the calculator?

This extra loan repayments calculator provides you with an estimate based on the details you input and a series of assumptions, including:

• Ongoing or upfront fees and charges are not taken into account.
• The interest rate remains the same over the loan term.
• Interest is calculated by compounding repayment frequency, when in practice, interest compounding frequency may not be the same as repayment frequency.
• A year is made up of 26 fortnights or 52 weeks, counted as 364 days.
• No rounding takes place during calculation, while repayments are rounded to the nearest cent in practice.
• The final repayment after repayments are increased will be a partial repayment to reduce the loan balance to zero without a negative owing amount.

Keep in mind; a calculator can't give you a precise result because of the amount of variance between financial lenders and their home loan products. Depending on the type of home loan you get and how your circumstances change over the years, the time and money you save making extra repayments may be significantly different from the answer you get here.

With this in mind, you should only use this calculator to get an indication of how making extra repayments will affect your home loan.