Extra Repayments Calculator
See how much interest and time you'd save by paying extra off your home loan each period.
- Time saved
- 4 years 7 months
- New payoff time
- 25 years 5 months
This calculator provides estimates only. It is general information, not financial or taxation advice, and doesn't account for your full personal circumstances. Confirm figures with your lender or a licensed adviser before making a decision.
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How this calculator works
Paying extra off your home loan — even a small amount each period — can cut years off your mortgage and save a large amount of interest, because every extra dollar goes straight to reducing your principal instead of sitting there accruing interest.
Enter your loan details as they stand today, then enter how much extra you'd pay each period on top of your normal repayment. The calculator simulates paying down the loan period by period at that higher amount and compares it to your original schedule.
Worked example: on a $500,000 loan at 6.2% p.a. over 30 years, the standard monthly repayment is $3,062.34. Adding an extra $200 a month brings the payment to $3,262.34 — and pays the loan off about 4.6 years earlier, saving roughly $108,800 in interest over the life of the loan. The earlier you start making extra repayments, the bigger the saving, because more of the loan's life is spent with a smaller balance accruing interest.
Most variable-rate home loans in Australia let you make extra repayments without penalty, but check your loan has this feature (and isn't fixed-rate, where extra repayments are often capped or penalised) before relying on this.
Frequently asked questions
- Does this work for fixed-rate loans?
- The maths is the same, but many fixed-rate loans cap extra repayments (often around $10,000–$30,000 a year) or charge a break fee if you overpay. Check your loan contract before making large extra repayments on a fixed rate.
- Is this the same as an offset account?
- No — extra repayments permanently reduce your loan balance, while an offset account keeps your savings separate but reduces the interest charged. Both save interest; extra repayments also reduce your minimum required balance, while offset money stays accessible. See our offset calculator to compare.
- What if I can't keep up the extra repayment every period?
- This calculator assumes a consistent extra amount every period. In practice even irregular lump-sum extra repayments will save interest — just less predictably than shown here.