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Mortgage Repayment Calculator

Q: How are mortgage repayments calculated?

The easiest way to calculate your potential mortgage repayments is to use a Mortgage Repayment Calculator like the one above. If you'd prefer to do the math yourself, you can use the following formula: P × [R(1+R) N ] ÷ [(1+R) N − 1] Where: P = Principal balance R = Interest rate per repayment period (annual interest rate ÷ number of repayments per year) N = Total number of repayments over the loan term

Q: Will my mortgage repayments change over time?

Most borrowers can expect their mortgage repayments to flex and shift over time. Our calculations are only accurate if every detail of your home loan remains unchanged for the duration of the loan term, which rarely happens. Chances are that your interest rate will fluctuate over the life of your loan, impacting your repayments. Additionally, extra or missed repayments, as well as the use of certain features such as offset accounts, can affect how much interest you pay overall.

Q: How do principal and interest repayments work?

Home loan repayments are made up of two parts: the principal (the borrowed funds being repaid) and interest charged on the principal. When you make principal and interest repayments, you’re both returning a portion of the borrowed funds and paying the interest accrued on those funds.

Q: How do interest-only repayments work?

If you’re making interest-only repayments, you won’t be reducing the debt you hold. Instead, you’ll simply be paying the interest charged by your lender. Most lenders limit how long a person can be on interest-only repayments; otherwise, they might never see the lent money returned.

Q: How do interest rates affect mortgage repayments?

Over the life of your loan, your interest rate will likely fluctuate. Factors driving it might include the cash rate , determined by the Reserve Bank of Australia (RBA), and your lender's discretion. If your interest rate increases, so will your home loan repayments. Conversely, if your rate is cut, you’ll pay less. However, the portion of your repayments that goes towards your principal balance will remain unchanged. Borrowers worried about changing interest rates might be tempted to fix their interest rate for a certain period, typically between one and five years.

Q: What is an amortisation schedule?

If you've used the mortgage repayment calculator above, you might be wondering what an amortisation schedule is. An amortisation schedule is a detailed table that shows the breakdown of mortgage repayments over the loan term. It outlines how much of each repayment goes towards paying down the principal (the amount borrowed) and how much goes towards paying interest. The schedule helps borrowers understand how their loan balance decreases over time and how much interest they will pay throughout the life of the loan. This can be a useful tool for planning and managing your finances effectively.

Whether you’re considering entering the market or starting a refinancing journey, our free Mortgage Repayments Calculator puts you in the driver’s seat. Compare how different interest rates, loan terms, and repayment frequencies can impact the cost of your loan.

Your estimated results

Your estimate repayment

$2,794.18 monthly

Total principal paid

$450,000.00

Total interest paid

$555,906.39

You could be paying less!

Bare Home Loan (Basic OO P&I <90%)

Estimated repayment	$2,794.18	$2,507.26
Comparison rate	6.33%	5.33%*
Total interest paid	$555,906	$452,614

More details

Promoted

Summary

Loan amount$450,000.00

Loan term30 years

Interest rate6.33 %

Payment typePrincipal & Interest

Repayment frequencyMonthly

Total extra payment$0.00

Total principal paid$450,000.00

Total interest paid$555,906.39

Estimated repayments$2,794.18
monthly

Amortisation Schedule

Years	Principal	Interest	Balance
0	$0.00	$0.00	$450,000.00
1	$4,518.53	$31,625.66	$445,481.47
2	$4,848.08	$31,296.11	$440,633.38
3	$5,201.68	$30,942.51	$435,431.70
4	$5,581.00	$30,563.19	$429,850.69
5	$5,988.02	$30,156.17	$423,862.67
6	$6,424.73	$29,719.46	$417,437.93
7	$6,893.30	$29,250.89	$410,544.63
8	$7,396.03	$28,748.16	$403,148.59
9	$7,935.43	$28,208.76	$395,213.16

Years	Principal	Interest	Balance
10	$11,675.84	$13,057.43	$350,400.01
11	$12,110.45	$12,622.82	$338,289.56
12	$12,561.20	$12,172.07	$325,728.36
13	$13,028.73	$11,704.54	$312,699.64
14	$13,513.68	$11,219.59	$299,185.96
15	$14,016.64	$10,716.63	$285,169.32
16	$14,538.33	$10,194.94	$270,630.99
17	$15,079.46	$9,653.81	$255,551.53
18	$15,640.73	$9,092.54	$239,910.80
19	$16,222.88	$8,510.39	$223,687.92

Years	Principal	Interest	Balance
20	$16,826.71	$7,906.56	$206,861.21
21	$17,452.99	$7,280.28	$189,408.22
22	$18,102.61	$6,630.66	$171,305.61
23	$18,776.39	$5,956.88	$152,529.22
24	$19,475.23	$5,258.04	$133,053.99
25	$20,200.12	$4,533.15	$112,853.87
26	$20,951.97	$3,781.30	$91,901.90
27	$21,731.80	$3,001.47	$70,170.10
28	$22,540.66	$2,192.61	$47,629.44
29	$23,379.64	$1,353.63	$24,249.80

Years	Principal	Interest	Balance
30	$24,249.80	$483.43	$0.00
	$	$	$

How to calculate your mortgage repayments

YourMortgage.com.au's Mortgage Repayment Calculator considers several factors to determine your regular home loan repayments. It can also estimate how much interest you may pay over the life of a loan and the impact of extra or lump sum repayments.

Simply enter the amount you wish to borrow, the interest rate on the table from your favourite lender, and your ideal loan term, as well as whether you wish to make principal and interest or interest only repayments, and you're on your way to knowing the value of your regular repayments. You can even adjust the calculator to advise you on how the frequency of your repayments could impact them.

Though, the calculator has its limitations. Here are a few things it can't factor in:

Interest rate changes
The later decision to refinance
The use of redraw facilities or offset accounts
Changes in repayment types (from principal and interest to interest only, for instance)

Can I calculate my own home loan repayments?

YourMortgage.com.au's Mortgage Repayment Calculator provides not only a clear estimate of regular repayments, but also an estimate of how much interest a borrower might pay over their loan's life, as well as an amortisation schedule.

But, if you'd prefer to do the sums yourself, here's the formula you can use to calculate your own home loan repayments:

P × [R × (1+R)^N] ÷ [(1+R)^N − 1]

Where:

P = Principal balance
R = Interest rate per repayment period (interest rate per annum ÷ number of repayments per annum)
N = Total number of repayments over loan term (a 30-year loan term would demand 360 monthly repayments)

To create your own amortisation schedule, which breaks down each repayment into principal and interest, showing how that mix changes over the life of the loan, you can repeat this calculation for each repayment period:

Interest charged (A) in each period:
Current loan balance × R
How much principal (B) is repaid each period:
Regular repayment - A
The resulting new loan balance:
Current balance - B

Why should I use a mortgage repayment calculator?

Our Mortgage Repayment Calculator can help you understand what your monthly, fortnightly, or weekly repayments could look like under various circumstances. It can also provide insight into the total cost of the loan over its full term.

Here's what such valuable information could mean for you:

First Home Buyers

House hunting can spur the temptation to borrow more than originally planned. When assessing your options, make sure to calculate the long-term impact mortgage repayments can have on your finances.

Refinancers

Refinancing can have a significant impact on your budget. Make sure to calculate the overall impact swapping your mortgage product will have on your repayments now and into the future.

Investors

The investment home loan you use to buy a property can make or break your returns. When considering investment options, it's worth calculating potential repayments and assessing how they might change over time.

Some of Australia's most competitive home loans

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market.

Loan purpose

Loan amount

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Compare

Filters

Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	5.29% p.a.	5.33% p.a.	$2,773	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.19% p.a.	5.10% p.a.	$2,742	Principal & Interest	Variable	$0	$0	80%	Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	Go to site	Compare		Disclosure
loans.com.au	loans.com.au Bold Home Loan (Variable OO P&I <90%)	5.39% p.a.	5.43% p.a.	$2,805	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Offset Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	Go to site	Compare	Promoted	Disclosure

Important Information and Comparison Rate Warning

Frequently Asked Questions

How are mortgage repayments calculated?

The easiest way to calculate your potential mortgage repayments is to use a Mortgage Repayment Calculator like the one above. If you'd prefer to do the math yourself, you can use the following formula:

P × [R(1+R)^N] ÷ [(1+R)^N − 1]

Where:

P = Principal balance
R = Interest rate per repayment period (annual interest rate ÷ number of repayments per year)
N = Total number of repayments over the loan term

Will my mortgage repayments change over time?

Most borrowers can expect their mortgage repayments to flex and shift over time. Our calculations are only accurate if every detail of your home loan remains unchanged for the duration of the loan term, which rarely happens. Chances are that your interest rate will fluctuate over the life of your loan, impacting your repayments. Additionally, extra or missed repayments, as well as the use of certain features such as offset accounts, can affect how much interest you pay overall.

How do principal and interest repayments work?

Home loan repayments are made up of two parts: the principal (the borrowed funds being repaid) and interest charged on the principal. When you make principal and interest repayments, you’re both returning a portion of the borrowed funds and paying the interest accrued on those funds.

How do interest-only repayments work?

If you’re making interest-only repayments, you won’t be reducing the debt you hold. Instead, you’ll simply be paying the interest charged by your lender. Most lenders limit how long a person can be on interest-only repayments; otherwise, they might never see the lent money returned.

How do interest rates affect mortgage repayments?

Over the life of your loan, your interest rate will likely fluctuate.

Factors driving it might include the cash rate, determined by the Reserve Bank of Australia (RBA), and your lender's discretion.

If your interest rate increases, so will your home loan repayments. Conversely, if your rate is cut, you’ll pay less. However, the portion of your repayments that goes towards your principal balance will remain unchanged.

Borrowers worried about changing interest rates might be tempted to fix their interest rate for a certain period, typically between one and five years.

What is an amortisation schedule?

If you've used the mortgage repayment calculator above, you might be wondering what an amortisation schedule is.

An amortisation schedule is a detailed table that shows the breakdown of mortgage repayments over the loan term.

It outlines how much of each repayment goes towards paying down the principal (the amount borrowed) and how much goes towards paying interest. The schedule helps borrowers understand how their loan balance decreases over time and how much interest they will pay throughout the life of the loan. This can be a useful tool for planning and managing your finances effectively.

More Mortgage Repayment Guides

Home Loan Hindsight Survey

Mortgage Repayment Calculator

How to calculate your mortgage repayments

Can I calculate my own home loan repayments?