Lump sum repayment calculator

Find out how much a lump sum payment will save you in interest

Last updated:

When you make a regular payment on a home loan, some goes towards the interest component and some goes towards the loan amount still owing so you gradually pay off your home loan in the term you agree to.

When you make a lump sum payment, sometimes you can get ahead on your repayments by months or even years, as a much large payment goes towards your home loan rather than interest. Using the calculator below you can see just how much of an impact these payments can have.

A lump sum calculator can help you figure out how paying a lump sum on your mortgage can affect the overall loan. The calculator is simple to use and can help you better manage your current loan or help you figure out your repayment options when looking for a new loan.

Lump sum calculators are a great tool to have if you happen to come into extra money during the year, like an unexpected bonus/raise or a tax return and you want to see how much they could reduce your home loan interest. As long as you know the size of your loan, the term, the repayment schedule and your interest rate you can figure out how different lump sum payments will affect your mortgage.

The table below includes variable rate home loans, many of which allow unlimited extra repayments. Be sure to check with your lender before making a lump sum payment on your loan.

Compare variable home loans

Rates last updated February 25th, 2020
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
Athena Variable Home Loan - Owner Occupier, P&I
2.84%
2.80%
$0
$0 p.a.
80%
Owner occupiers can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Bank of Melbourne Basic Home Loan - Special Offer (Owner Occupiers, P&I) LVR above 60% up to 80%
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - LVR <=75% (Owner Occupier, P&I)
2.78%
2.80%
$0
$0 p.a.
75%
A competitive interest rate for borrowers with 25% deposits saved. Unlimited redraw and extra repayments, plus no ongoing fees.
BankSA Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
90%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - (Owner Occupier, P&I)
2.88%
2.90%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
Bankwest Complete Home Loan Package Variable - $200k+ LVR <=80% (Owner Occupier, P&I)
3.05%
3.50%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
Macquarie Bank Basic Home Loan - LVR up to 70% (Owner Occupier, P&I)
3.09%
3.09%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Owner Occupier, P&I)
2.90%
2.92%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.
Homestar Star Essentials Home Loan - $150K to $850K LVR up to 80% (Owner Occupier, P&I)
2.74%
2.77%
$0
$0 p.a.
80%
A low rate variable mortgage with minimal fees and redraw facility. Requires a 20% deposit. For every complete application Homestar will donate $250 to select charities to help bushfire victims.
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Owner Occupier, P&I)
3.19%
3.19%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
3.33%
3.34%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, QLD and ACT only.
Macquarie Bank Offset Home Loan Package - LVR ≤ 80% (Owner Occupier, P&I)
3.19%
3.45%
$0
$248 p.a.
80%
Has a 100% offset account which helps you save on the amount of interest you pay on your mortgage.
loans.com.au Essentials - Variable (Owner Occupier, P&I)
3.04%
3.06%
$0
$0 p.a.
90%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
IMB Budget Home Loan - Special LVR <=90% (Owner Occupier, P&I, NSW and ACT borrowers only)
3.13%
3.19%
$449
$0 p.a.
90%
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Owner Occupier, P&I)
3.01%
3.04%
$0
$0 p.a.
80%
A competitive, flexible variable rate mortgage for home buyers borrowing above $500,000. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs.
Athena Variable Home Loan - Investor, P&I
3.24%
3.20%
$0
$0 p.a.
80%
Athena offers one of the lowest rates in the market for investors. No ongoing fees and no application fee. Principal and interest repayments.
Pepper Money Essential Prime Full Doc Home Loan - LVR >75% up to 80%
3.59%
3.79%
$599
$10 monthly ($120 p.a.)
80%
This is a competitive, flexible variable rate suitable for borrowers with a good credit history. Borrow up to 80%.
loans.com.au Smart Home Loan - (Investor, P&I)
3.19%
3.21%
$0
$0 p.a.
80%
A competitive variable investor rate for borrowers with 20% deposits. Low fees, redraw facilities and repayment flexibility.
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupied Variable P&I Rate — borrowing less than $200,000
2.99%
2.99%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Investor, P&I)
3.29%
3.32%
$0
$0 p.a.
80%
Investors with 20% deposits can get this flexible variable mortgage with low fees and a reasonable rate.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($750k+ Owner Occupier, P&I)
3.09%
3.25%
$300
$10 monthly ($120 p.a.)
80%
Get this loan with a 20% deposit and access a 100% offset account to save on interest.
Hume Bank Flexi Low Rate Home Loan - (Owner Occupier, P&I)
3.04%
3.04%
$0
$0 p.a.
95%
This flexible, basic home loan offers a very low rate and you only need a 5% deposit.
loans.com.au Offset Variable - 80% to 90% LVR (Owner Occupier, P&I)
3.12%
3.14%
$0
$0 p.a.
90%
Purchase or refinance with a low rate variable loan with offset, redraw and split loan features, loans.com.au has won a range of awards for their home loans.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Owner Occupier, P&I)
3.12%
3.28%
$300
$10 monthly ($120 p.a.)
80%
This flexible, competitive variable rate mortgage comes with a 100% offset account and redraw facility.
UBank UHomeLoan Variable Rate - The Real Reward Offer (Owner Occupier Interest Only)
3.38%
3.38%
$0
$0 p.a.
80%
A competitive discounted variable rate home loan. 0.33%p.a. Discount Offer for new Owner Occupier Loans.

Compare up to 4 providers

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How to use the lump sum calculator

how

In order to use a lump sum calculator you’ll need certain details regarding your loan and the payment you’re looking to make. You’ll first need your original loan amount, the term of the loan, the interest rate you’re paying on the loan and how often you make repayments on the loan. You’ll also need the total amount of money you’re looking to pay towards your mortgage and the starts after date (in years).

Once you input all of the necessary information into the calculator you’ll be able to see the results right away and figure out if putting a lump sum toward your mortgage will be worth it in terms of savings. Usually a lump sum payment will go toward your principal more so than interest, which will help you pay down your loan faster than just making general repayments.

  • Your loan amount. This is the amount of money you originally borrowed.
  • The loan term. This refers to the length of time the loan is for.
  • The interest rate. This is the agreed upon amount of interest that is attached to your mortgage, expressed as a percentage.
  • The repayment frequency. This is how often you make scheduled repayments toward the mortgage. This can be weekly, fortnightly, or monthly, depending upon your agreement with your lender.

Case study

Susan just inherited some money unexpectedly. Since she is looking for a responsible way to use her new-found money she decides to take some of it and pay a lump sum toward her mortgage. She knows that by doing this she’ll save some money on the interest rate of her loan and take some time off her loan term. In order to figure out exactly what a lump sum will do for her mortgage she uses a lump sum calculator.

After she gathers all of her information and opens the loan calculator and then enters in her information into the designated fields. Susan inputs her original loan amount, $300,000. She then inputs her interest rate (5.5%), her loan term (20 years) and her repayment frequency (monthly).

Susan then has to input her lump sum information. She is looking to put down $10,000 and has had her mortgage for two years. According to the calculator, Susan has been making monthly payments of $2,063.66 a month and has a remaining balance of $282,571 after two years. If she were to put a lump sum of $10,000 toward her loan she’ll save $16,141 on interest and take a year off her loan.

FAQs

What information will I need to use the calculator?

When using any calculator you won’t need any personal details like your name, date of birth, or address. All you need for the lump sum calculator is the original amount of money you borrowed, the loan term, the agreed upon interest rate, your repayment frequency, the amount of the lump sum you’re looking to pay, and finally how long you’ve had the mortgage (the start after date).

How do lump sum payments work?

Lump sum payments are large payments that you make toward your loan. This is in addition to your scheduled repayments. They are a way to pay your loan down faster as they go toward your principal instead of your interest. Since this payment will lower your principal it will cause your interest to go down as well since that rate is based on the size of the principal amount.

How accurate is the calculator?

The calculator uses all of the information you put into it to create an accurate result. There is no guessing involved, and it works purely by calculations.

What should I look for when making a lump sum payment?

Always check the terms of your loan before making a lump sum payment toward your mortgage as you may be charged a fee for paying an additional repayment. If these penalties are built into the loan it might not be worth it to make this payment. You should also to check out other options that may be more beneficial, like putting the money into a 100% offset account.

Lump sum calculators can help take the guess work out of loan repayments and allow you to see what affects a lump sum payment will have on your overall loan.

If you’re looking to make a lump sum payment toward your mortgage or would like to see if this kind of payment is worth doing, try out a lump sum calculator. You only need a handful of details regarding your current loan and the size of the payment you’d like to make and the calculator will do the work for you.

For more detailed advice regarding your mortgage compare and talk to the available mortgage brokers in your area.

Compare home loans from across the market

Rates last updated February 25th, 2020
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
Athena Variable Home Loan - Owner Occupier, P&I
2.84%
2.80%
$0
$0 p.a.
80%
Owner occupiers can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees.
Bank of Melbourne Basic Home Loan - Special Offer (Owner Occupiers, P&I) LVR above 60% up to 80%
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - LVR <=75% (Owner Occupier, P&I)
2.78%
2.80%
$0
$0 p.a.
75%
A competitive interest rate for borrowers with 25% deposits saved. Unlimited redraw and extra repayments, plus no ongoing fees.

Compare up to 4 providers

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Important Information*
Logo for Athena Variable Home Loan - Owner Occupier, P&I
Athena Variable Home Loan - Owner Occupier, P&I

Owner occupiers can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees.

Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for loans.com.au Essentials - Variable (Owner Occupier, P&I)
loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.04% p.a.
comp rate of 3.06% p.a.

Logo for loans.com.au Smart Home Loan - (Owner Occupier, P&I)
loans.com.au Smart Home Loan - (Owner Occupier, P&I)

Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.

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2 Responses

  1. Default Gravatar
    garethJuly 8, 2013

    hi, we are about to receive a 100k lump sum we have two home loans on the one property 213k at 5.45% and 129k at 5.69% also a 7k personnel loan at 16.4%. into which loan(s) should we place the money

    • Avatarfinder Customer Care
      ShirleyJuly 9, 2013Staff

      Hi Gareth,

      Thanks for your comment.

      Since finder.com.au is a comparison website we’re not licensed to give any personalised financial advice. You may want to consider speaking to a financial advisor.

      Cheers,
      Shirley

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