Mortgage repayment calculator
Estimate repayments on a home loan and the total interest over the term.
How it is worked out
The repayment is the fixed amount that pays the loan and its interest off exactly at the end of the term. Interest is charged on the balance still owing, so early repayments are mostly interest and later ones mostly principal. For interest only, the repayment is the interest on the full balance, and the loan amount is still owed at the end.
A worked example
A loan of $650,000 at 6.5% / year over 30 years, principal and interest, repaid monthly, is $4,108 / month. Over the term that is $1,479,039 repaid, of which $829,039 is interest. The same loan over 25 years is $4,389 / month and $666,654 in interest.
Questions
Is paying fortnightly cheaper than monthly?
Paying half the monthly repayment every fortnight is cheaper: that is 26 half-payments / year, the same as 13 monthly repayments, so the loan is paid off sooner. A true fortnightly repayment over the same term, which is what this calculator works out, costs about the same as monthly.
Why is my lender's figure different?
Lenders work interest out daily, add fees and may round. Expect a few dollars' difference in each repayment.
What is a comparison rate?
A rate that folds a lender's upfront and ongoing fees into the interest rate, worked out by law on a $150,000 loan over 25 years so two loans can be set side by side. It leaves out fees that depend on how you use the loan, and the value of features such as an offset account. This calculator takes the interest rate alone.
What is the difference between principal and interest and interest only?
Principal and interest repays the loan over the term, so each repayment owes a little less interest and clears a little more of the loan. Interest only pays the interest alone, usually for one to five years, leaves the whole loan owing at the end, and costs more interest over the life of the loan.
How does a bigger deposit change the repayment?
Every dollar of deposit is a dollar less borrowed, and with 20% of the price or more as deposit lenders charge no mortgage insurance premium. The borrowing power calculator works out what your savings leave for the deposit once your state's stamp duty and the other upfront costs are paid.