Extra Loan Payments Calculator – Speed up Your Home Loan Repayments

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What everybody ought to know about making extra home loan repayments.

Most of us wonder paying off a home loan sooner is worth it. Apart from being debt-free sooner and the benefits that comes with, paying just a little extra each month can lead to considerable savings in the form of interest.

The calculator below allows you to see the impact of making extra repayments on your loan. You can also read on for more information about how this works and tips to pay your home loan off even sooner.

Extra loan repayment calculator

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Rates last updated August 22nd, 2017.

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A basic home loan with a competitive rate and low fees.
3.64% 3.66% $0 $0 p.a. 80% Go to site More info
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)
Combine a low variable interest rate and free redraw with no application or ongoing fees.
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.85% 3.86% $0 $0 p.a. 90% Go to site More info
Reduce Home Loans Rate Buster 100% Offset Variable Home Loan - Up to $750k (LVR <=80%)
Borrow up to 80% LVR with no ongoing fees and a 100% offset account.
3.54% 3.54% $440 $0 p.a. 80% Enquire now More info
IMB Budget Home Loan - Special LVR <=80% (Owner Occupier and Principal & Interest only)
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.79% 3.84% $445 $0 p.a. 80% Go to site More info
ING Orange Advantage Loan - $150,000 to $500,000 (LVR <=80% Owner Occupier, P&I)
A fully featured home loan with an offset account and discounts available. $1000 cashback offer available for loans over $300k. Terms and conditions apply.
3.79% 4.11% $0 $299 p.a. 80% Go to site More info
Tic:Toc Live in Loan Variable Rate
A competitive variable rate product with low fees offered by a 100% online lender.
3.68% 3.69% $0 $0 p.a. 80% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
Pay no ongoing fees on a competitive variable rate home loan.
3.86% 3.87% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate, P&I)
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.74% 4.85% $0 $0 p.a. 95% Go to site More info
Bankwest Equaliser Home Loan - LVR ≤80% (Owner Occupier, P&I & $200k+) new customers only
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.72% 4.19% $0 $0 p.a. 80% Go to site More info
Mortgage House Advantage Variable Home Loan - 80 (PAYG Special No Offset)
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.64% 3.66% $0 $0 p.a. 80% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
Get a competitive rate without features you may not use.
3.97% 4.02% $445 $0 p.a. 90% Go to site More info
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.99% 3.99% $0 $0 p.a. 110% Go to site More info
3.99% 4.04% $600 $0 p.a. 90% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
Take advantage of a 100% offset account along with no annual or application fees.
3.72% 3.74% $0 $0 p.a. 80% Go to site More info
ME Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier, P&I)
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.74% 4.81% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74% 4.12% $0 $395 p.a. 80% Go to site More info
P&N Bank & Home Loan & Bag
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.99% 4.02% $395 $0 p.a. 80% Go to site More info
Greater Bank Great Rate Home Loan - Discounted Variable ($150K+ Owner Occupier)
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
3.99% 3.99% $0 $0 p.a. 85% Go to site More info
Mortgage House Advantage Variable Home Loan - 70 (PAYG Special No Offset)
A home loan with a competitive interest rate and flexible repayment that has a maximum LVR of 70%.
3.64% 3.66% $0 $0 p.a. 70% Go to site More info
Beyond Bank Low Rate Special Home Loan - LVR <70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.83% 3.83% $0 $0 p.a. 70% Go to site More info
QT Mutual Bank Mortgage Saver Home Loan
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.95% 3.95% $0 $0 p.a. 95% Go to site More info
ME Basic Home Loan - LVR <=80% (Owner Occupier, P&I)
A low variable rate loan with no application or ongoing fees.
4.09% 4.11% $0 $0 p.a. 80% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.17% 4.21% $600 $0 p.a. 95% Go to site More info
4.57% 4.94% $0 $395 p.a. 80% Go to site More info
3.78% 3.79% $600 $0 p.a. 90% Enquire now More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
3.80% 3.81% $0 $0 p.a. 95% Enquire now More info
Connective Smart Options Basic Home Loan - LVR ≤ 70% (Owner Occupier, P&I)
A variable home loan with $0 annual or monthly fees.
3.74% 3.74% $363 $0 p.a. 70% Enquire now More info

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While making one or two additional payments doesn’t amount to much, if you keep doing this on an ongoing basis the benefits become more noticeable. If not by much, the least you can do is round off your mortgage payments. For example, if you have to repay $640 each month for a $200,000 loan, consider rounding it off to $650 and if nothing else, this will at least remove four to five payments towards the end of your loan.

When you make extra payments make sure your lender applies it to the principal and does not save it for the next payment. In addition, make sure your lender allows you to make additional repayments, because some home loans attract prepayment penalties or have limits on the amount of additional payments you can make.

Using an extra home loan payments calculator gives you a good indication of how much you stand to save by making extra payments. One thing you’ll notice is that the sooner you start making extra payments, the greater the impact will be.


How to use the extra home loan payments calculator

Using the extra repayments calculator requires you to input details about your existing home loan. Here’s the information you’ll need:

  • Loan amount. This is not the original loan amount, but how much of the principal loan amount you still have to pay. If your loan was for $600,000 and you’ve already paid $200,000 towards the principal, enter $400,000.
  • Interest rate. This refers to the interest rate that your home loan attracts and it can be fixed or variable.
  • Loan term. This refers to length of time you have left on your home loan.
  • Repayment frequency. Mention if your payments are weekly, fortnightly, or monthly.
  • Extra amount. This is how much you wish to pay in addition to your regular repayments. In this case, the more you can pay the better.
  • Starts after date. This indicates when you want to start making extra payments. For example, if you've already had your home loan for five years and want to start making extra payments now, enter five.

After entering the required information the calculator automatically tells you the effect your extra payments will have on the life of your loan. Moving the mouse over the graph lines informs you of the impact on a year-to-year basis.

Case study

Elizabeth has paid $150,000 towards the principal of her $650,000 home loan with a 5.50% p.a. rate and she still has 20 years of the original 30 years to go before she can truly call her home her own. With a steady source of income, making additional payments isn’t much of a problem and luckily, the home loan she has allows her to make extra repayments without imposing any penalties.

Using the calculator, she works out that by increasing her monthly payment from $2,271.16 to $ 2,371.16- an increase of $100 - she can reduce the loan term by 17 months and save around $18,000 in interest.

She doesn’t stop there, though. She figures that rounding off her monthly payment is just as affordable and that’s exactly what she does. She now makes a monthly payment of $2,400, which is $128.84 more than her regular payment. She will now save 22 months off her loan term and more than $22,000 in interest.

Frequently asked questions about making extra payments on your mortgage

Would it help if I also change my monthly payments to fortnightly or weekly payments?

Yes. You will be making the same value of repayments each month, but as there’s an extra fortnight in the year you’ll be making an additional repayment every year. While it doesn’t seem like much, this does add up over the loan term.

If I make extra payments and need the money later on, is there any way I can access it?

Many home loans come with redraw facilities that allow you to do just this. They allow you to make extra repayments, and then access this extra money as and when required.

What if my lender imposes extra repayment penalties?

If this is the case, you might want to calculate to see which one is more profitable. If the penalties exceed the savings, there’s no point making extra payments.

If you think you can make extra repayments towards your home loan and if your lender allows it, doing so can be in your best interest. Not only do you stand to save money, you also pay off your loan sooner. Before making extra repayments, don’t forget to find out if you can do so without facing any penalties.

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