Loan Repayment Calculator

A loan repayment calculator for Australian home and personal loans, and a repayment calculator Australia wide rather than one built for a single state. Enter the amount, the rate and the term, and it works out what you would pay each month. Below there is a table of repayments at common loan amounts, and a look at where the money in your first year actually goes.

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Repayments at common loan amounts

If you are here to check the repayments on 100k loan borrowings, or what 300 000 loan repayments come to, this is the quick answer. Use the loan repayment calculator above for your own rate.
Illustrative only. Not a rate offer, a quote, or a prediction. These use an assumed 6.00 per cent to show the shape. Your rate will differ.

Monthly repayment, principal and interest

$100,000   $644 over 25 years  ·  $600 over 30 years
$200,000   $1,289 over 25 years  ·  $1,199 over 30 years
$300,000   $1,933 over 25 years  ·  $1,799 over 30 years
$400,000   $2,577 over 25 years  ·  $2,398 over 30 years
$500,000   $3,222 over 25 years  ·  $2,998 over 30 years
$600,000   $3,866 over 25 years  ·  $3,597 over 30 years
$750,000   $4,832 over 25 years  ·  $4,497 over 30 years
Notice the 25 and 30 year columns. Stretching a $500,000 loan from 25 years to 30 drops the monthly repayment by about $224, which is real relief if cash flow is tight. It also adds years of interest. Neither column is the right answer on its own.

A rule of thumb that is exactly true

At 6.00 per cent over 30 years, each $100,000 borrowed costs about $600 a month.

Most rules of thumb are approximations. This one is not. The repayment formula is linear in the loan amount, so three times the loan really is three times the repayment at the same rate and term. $300,000 comes to $1,799, which is exactly three times $600 rounded.

That makes it a useful thing to carry in your head. If you are looking at a property that needs $150,000 more borrowing than the last one, at that rate and term you are looking at roughly $900 a month more. The rule breaks the moment the rate or the term changes, which is why the calculator exists.

Where your first year actually goes

A repayment figure tells you what leaves your account. It does not tell you what the money does, and the split surprises most people.
Take a $500,000 loan at an assumed 6.00 per cent over 30 years. The repayment is about $2,998 a month.

Over the first twelve months you pay $35,973.

Of that, $29,833 is interest and $6,140 comes off the loan.

Year one is 82.9 per cent interest. After a full year of repayments the balance has moved from $500,000 to $493,860.

It stays that way for a long time. The principal portion of each repayment does not overtake the interest portion until month 223, which is year 18.6 of a 30 year loan. The balance does not fall below half until year 21.
None of this is a fault in the loan. It is what amortising at a fixed repayment does: interest is charged on the balance, the balance starts at its largest, so early repayments are mostly interest by arithmetic rather than by design.

It matters for two reasons. If you expect to sell or refinance within a few years, you will have built less equity than the repayments suggest. And it is the reason extra repayments are worth so much more early than late.

What one extra $100 a month does

Same loan, $500,000 at an assumed 6.00 per cent over 30 years.

Minimum repayment only
30.0 years, total paid about $1,079,200.

Plus $100 a month
27.5 years, total paid about $1,021,900.

That single extra $100 saves about $57,300 in interest and takes roughly two and a half years off the loan.
The reason it works so hard is the shape above. Every extra dollar in the early years comes straight off a balance that is being charged interest for the next three decades. The same $100 in year 25 saves almost nothing, because there is barely any balance left to charge interest on.

Whether spare cash is better in extra repayments, in an offset account, or somewhere else entirely depends on your situation and your tax position. That is a conversation, not a calculator output.

What the calculator assumes

Every repayment calculator, including this one and the one ASIC publishes, runs on assumptions. Knowing them is the difference between using the output and believing it.

The rate never moves

The figure assumes today’s rate applies for the whole term. On a variable loan it will not. Worth running the calculator two or three times at higher rates to see what the repayment becomes.

You pay exactly the minimum

No extra repayments, no offset balance, no redraws. Any of those change the outcome, usually for the better, and none of them appear here.

Fees are not in it

This tool works out the repayment on the loan, not the cost of the loan. Application, ongoing and discharge fees sit outside it. To compare two loans properly you need the comparison rate as well.

Approval is assumed

What you can repay and what a lender will approve are different questions. Serviceability is assessed at a buffer above the actual rate, so borrowing power is usually lower than a repayment calculator implies.

Borrowing more on a loan you already have

A good share of the people who land on a repayment calculator are not buying. They arrive looking for a renovation loan calculator or a top up loan calculator, working out what a loan increase would add to what they already pay.

The arithmetic is the same, with one addition: you are usually adding to an existing balance rather than starting fresh, so the question is what the combined repayment becomes, not what the new money costs on its own. Run the calculator on the total balance rather than on the increase, and compare it against what you pay now.

Whether the increase is available depends on equity, on servicing, and on what the funds are for. That part needs a lender, not a calculator.

One note for anyone searching for an SA loan calculator in particular: the repayment arithmetic is national and does not change by state. What does change is the government charges at settlement, which sit outside this calculation entirely. In South Australia those are set by the Registrar-General.

One note for anyone searching for an SA loan calculator in particular: the repayment arithmetic is national and does not change by state. What does change is the government charges at settlement, which sit outside this calculation entirely. In South Australia those are set by the Registrar-General.
Related tools on this site: borrowing power calculator for what a lender might approve, comparison rate calculator for the true cost including fees, fortnightly and weekly repayment calculator if you are paid other than monthly, and the mortgage refinance calculator if you already have a loan and are comparing.

Ready to talk about an actual loan? See buying a home, refinancing or personal loans.
Sources
Australian Government, ASIC Moneysmart: Mortgage calculator and Pay off your mortgage faster.

About the figures on this page. Every repayment, interest total and year figure was calculated directly from the standard amortising formula at monthly rests, not taken from a third party. The 6.00 per cent used throughout is a round number chosen to make the arithmetic legible. It is illustrative and is not an offer, a quote or a forecast.

General information only. Nothing on this page takes your objectives, financial situation or needs into account, and it is not a recommendation about any loan or about making extra repayments. Loanity is a credit representative and can provide credit assistance once we understand your circumstances.
STILL GOT QUESTIONS?

Loan repayment questions, answered

How do I calculate loan repayments?

The standard method multiplies the loan by the periodic interest rate, then divides by one minus the compounding factor over the number of periods left. Written out: repayment equals loan times i, divided by one minus one plus i to the power of minus n, where i is the annual rate divided by the number of repayments a year and n is the number of repayments remaining. The calculator above does it for you, and the amount, rate and term are the only three inputs it needs.

At an assumed 6.00 per cent, about $644 a month over 25 years or $600 a month over 30. Those figures are illustrative and move with the rate. A useful shortcut at that rate and term is roughly $600 a month for every $100,000 borrowed, and because the formula is linear in the loan amount that scaling is exact rather than approximate.

At an assumed 6.00 per cent, about $3,222 a month over 25 years or $2,998 over 30 years. Over the full 30 years that adds up to about $579,200 in interest on top of the $500,000 borrowed. Use the calculator with your own rate, because a difference of half a per cent changes the figure noticeably.

Because interest is charged on the balance, and the balance starts at its largest. On a $500,000 loan at 6.00 per cent over 30 years, about 82.9 per cent of the first year’s repayments is interest. The principal portion does not overtake the interest portion until around month 223, which is year 18.6. It is arithmetic rather than a fee, and it is why extra repayments made early are worth far more than the same amount made late.

A longer term lowers the repayment and raises the total interest. On a $500,000 loan at an assumed 6.00 per cent the monthly difference is about $224, and the interest difference over the life of the loan is considerable. Which suits you depends on how tight cash flow is and how much certainty you want, and it is worth deciding deliberately rather than accepting the default term you are offered.

On a $500,000 loan at an assumed 6.00 per cent over 30 years, roughly $57,300 in interest, and it takes about two and a half years off the loan. The saving is that large because the extra comes off a balance that would otherwise be charged interest for decades. The same $100 late in the loan saves very little.

No. It works out the repayment on the loan itself. Application, ongoing and discharge fees sit outside the calculation. To compare the true cost of two loans you also need the comparison rate, which folds most compulsory fees into a single figure.

No, and the gap is usually significant. What you can repay is your judgement. What a lender will approve is theirs, and lenders assess servicing at a buffer above the actual rate rather than at the rate itself. Borrowing power is normally lower than a repayment calculator would suggest.

On a variable loan the repayment rises. It is worth running the calculator two or three times at rates above your current one to see what the figure becomes, because that is the number that matters if you are deciding how much to borrow rather than what today costs.

Yes. The amortising formula is the same whatever the loan is for. What changes is the term, which is usually much shorter, and the rate, which is usually higher on unsecured lending. Enter your own figures rather than the home loan defaults.