Use a home loan calculator to remove the guesswork out of your loan repayments
The home loan calculator below will give you an estimate of what your repayments might be for a given interest rate and loan term. You can jump straight into it, or skip ahead and read about out how you can use it to help you with your home loan decision making.
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How do I calculate my home loan repayments?
Banks calculate your home loan repayment using a formula that takes into account the principal, or original amount you borrowed, your monthly interest rate and the number of payments over the life of the loan. The formula looks a bit complicated:
If that makes your head hurt, we’ll break it down further for you.
- M = Your monthly repayment, the figure you’re trying to solve for.
- P =The principal on the loan, or original amount you borrowed.
- i = Your effective monthly interest rate. Remember, the rate you see advertised by the bank is an annual interest rate, so you’ll need to divide by 12 to get your monthly interest rate.
- n = The total number of repayments on the loan.
Confused? It’s nothing a good scientific calculator can’t sort out. Or, you can simply use our home loan repayment calculator above to save yourself a lot of guesswork and head-scratching.
Why should you use a loan repayment calculator?
A home loan calculator is the perfect tool to help you manage your mortgage repayments and pay off your loan in time.
If you are in the market for a new home, finding the mortgage that will best suit your finances is crucial. A home loan repayment calculator can help you easily calculate the required repayments for different home loan amounts, ensuring you take up the right home loan for you in terms of affordability and suitable minimum monthly repayments.
If you currently have a mortgage, you could use the home loan repayment calculator to figure out what your new monthly repayments would be if you refinanced to a longer or shorter loan term. You would also be able to keep track of the required mortgage repayments should interest rates fluctuate during the term of your mortgage.
How to use the home loan repayment calculator
If you currently have a mortgage, a home loan repayment calculator can help you figure out how to pay off your loan sooner. New home buyers can also calculate how much they would have to pay on their mortgage and what repayment frequency they would be comfortable with depending on their current financial situation.
Using our home loan repayment calculator is simple. All you have to do is enter the following variables to calculate your monthly repayments, total interest on the loan and the total amount you would be required to pay over the term of the loan:
- Loan amount. This is the amount you intend to borrow on your mortgage.
- Interest rate. This rate will be determined by your mortgage provider while you are taking out the loan. If you are taking a fixed rate home loan, the rate will remain unchanged for the term of the loan, while a variable rate home loan will have fluctuating interest rates.
- Loan term. This is the period within which you intend to repay your mortgage. Lenders let you choose a loan term that will suit you, which can be anywhere between 10 and 30 years.
- Loan type. There are two types of home loans: ones where you make monthly interest and principal repayments, or ones where you make interest-only repayments for a given period and then start paying the principal amount. The loan type you choose will determine what your monthly repayments will be.
- Repayment frequency. Your mortgage provider will inform you whether you are allowed to make monthly, fortnightly or weekly repayments.
How you can use the home loan repayment calculator
Finding out the minimum monthly repayments you would have to make on a certain mortgage can help you determine whether it is suited for you.Our home loan repayment calculator lets you alter a range of variables to determine if a certain loan amount would be affordable to you and how long you would need to finish off your mortgage with comfortable repayments.
To help you understand how a home loan repayment calculator can help you in your home loan journey, let’s use a case study If you were to take out a mortgage of $500,000 at a rate of 5.50% p.a. for a loan term of 25 years, your minimum monthly repayments would be $3,070.44 and the mortgage would cost you $921,131 over the course of the loan term. If you paid off that same mortgage weekly, your weekly repayments would be $707.98, with your total loan repayment coming down to $920,377 (close to $800 less).
If you needed to reduce your minimum repayments due to financial difficulties, the key would be to refinance to a longer term. Let’s take the above example but alter the loan term to 30 years. Monthly repayments would then go down to $2,838.90, though the total payments on that same $500,000 mortgage would rise to $1,022,020.
With our home loan repayment calculator, you can quickly adjust your repayment frequencies, interest rate, loan term and amount to strike the perfect balance between affordable minimum repayments and a cost-effective home loan.
I am wanting to buy a home, the value of the home is about $330 000 and I have $310 000 cash from the sale of my current home.
I just need to borrow about $20 000. I have about $30 000 in my bank, this is for daily expenditure etc. I have no bank card or other debt. I own my cars etc.
My problem is I am on aged pension ( $20 000 pa) and from seasonal work I can generate about $18 000 pa.
I need the borrowings of about $20 000 until such time as I sell a private vehicle and my truck, estimated combined value $ 50 000. I have checked my veda file and I can see no problems. Previous attempts to get funding saw a reluctance due to the nature of my work which is seasonal.
YOur advice to me to get the short term borrowing of $20 000 then i can buy my house.
thanks graham,.
Hi Graham,
Thanks for leaving a question on finder.
You can check out this page about loans for pensioners.Some of the banks listed on that page accepts age pension. Also, offering an asset as a security to a loan will up your chances of approval. Moreover, it’s a good idea to reach out to those lenders to check your eligibility before submitting your application as rejected application can negatively affect your credit rating.
Cheers,
Joel
I owe 154,000 on my home loan, I am currently paying $469.30 per fortnight,plus an extra $100.00 per fortnight..There is still 15 years and 2 Months to go..How many year will it cut from my loan, with the extra $100 per fortnight?
Rob.
Hi Rob,
Thanks for your question.
May I know how much your current interest rate is so I can assist you further?
Thanks and cheers,
Anndy
Sheriff just took repo on our house we told we could refinance we need to refinance 210,000 what lender would be the best to go through we are with nab Homeside we have 14 days to do this. Any ideas would be great, thanks
Andy
Hi Andy,
Thanks for reaching out.
I’ve sent you an email to follow up with this enquiry.
Thanks,
Belinda
could you send me the dates i made payments and payment amounts loan number X
Hi Keith,
Thanks for reaching out.
Please note that finder.com.au is an online comparison website so we are not a lender and we do not offer loans ourselves. If you’re after your home loan details, you’ll need to contact your lender directly.
Thanks,
Belinda
hi,
I have an investment property in a trust and are looking to refinance on a interest only loan.
the property is a 3 bedroom unit in West Perth WA,
what can you offer me?
Hi Neil,
Thanks for your enquiry.
finder.com.au is an online comparison service, we are not a lender or an issuing provider.
However, you may be interested to compare interest-only loans to find a suitable lender.
Thanks,
Belinda
I have a good job around 65000 pa I want to buy a home for approx. 210000 but only have 15000 saved up Can you help me please
Hi Michael,
Thank you for getting in touch.
You have come through to finder.com.au, a financial comparison site, we are not able to offer personalised advice please contact a mortgage broker to discuss your needs.
Regards
Jodie
Can I easily transfer my home loan from another lender to your Super Start Home Loan and am I eligible for a Super Start if I am already in the market?
Hi Wendy,
Thanks for your question.
The staff at Bankwest will be happy to assist you with the process. The Super Start home loan is available for refinancers and borrowers already in the market.
You also have the option to get conditional approval over the phone, the process takes about 15-20 mins.
Cheers,
Shirley
We want to borrow $105,000 and pay the loan off as quickly as possible. Is there a minimum term to have the Dream Loan Express or can it be paid off as quickly as possible. Is the rate of 4.57%p.a. still applicable for this type of loan. Thank you
Hi Donna,
Thanks for your comment.
The minimum loan term is 10 years for the Dream Loan Express.
Please see this page for current rates.
Cheers,
Shirley