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30 Jan, 2026
Split loan calculator
Can’t decide between a fixed or variable interest rate? Why not have both? Our split loan calculator helps you decide if a split home loan works for your needs.
Loan details
Your estimated results
Summary
| Loan amount | $0 |
| Loan term | 30 years |
| Fixed portion of loan | $0 |
| Fixed term | 1 year |
| Fixed rate | 4.14% |
| Variable rate | 5.22% |
| Fixed monthly repayments | $0 |
|---|---|
| Variable monthly repayments | $0 |
| Total monthly repayments | $0 |
| Repayments after fixed period | $0 |
| Total interest payable | $0 |
| Total cost of loan | $0 |
| For a variable rate only loan, the interest payable would be |
$0 |
How to calculate Split Loan mortgage repayments
What to enter
Our calculator allows you to do the sums to help decide the optimum way to split your home loan between a variable interest rate portion and a fixed-rate portion.
Firstly, enter the entire loan amount at the top of the 'loan details' column, then enter the loan term in years and the frequency of your loan repayments (monthly, fortnightly, weekly).
Next, enter the dollar amount for the portion of the loan to be fixed, the number of years you may fix for, and the fixed interest rate that will apply.
Finally, enter the loan's variable interest rate which the calculator will automatically apply to the remaining portion of the loan.
What it calculates
Our calculator will display your new repayments (both fixed and variable portions, and the total). It will also show what your repayments would be after the fixed period if the fixed portion of your loan was to revert to variable interest rate on the other portion.
You'll also be able to see the total interest payable on your split loan as well as its total cost (including the amount you borrowed as well).
You can compare the total interest payable with a fixed component to the interest payable if you were leave your home loan on a variable rate only.
Be sure to note the figures so you can compare them when you enter different fixed-rate amounts if you're considering various options.
What is a split loan and how would it work?
A 'split' home loan essentially allows a borrower to divide their loan in two, with one portion having a fixed interest rate and the other a variable interest rate. This approach can offer some borrowers the best of both options:
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a stable fixed-rate portion of the loan where repayments will be unchanged and known in advance
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the flexibility of a variable rate loan that may benefit from falling interest rates (or not)
Borrowers are free to decide the split ratio: for example, 50/50, 60/40, or 70/30 depending on what best suits their circumstances.
Split loan example
Say you take out a loan of $700,000 over 30 years and decide to split it 60/40.
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$420,000 (60%) of the loan amount would remain at the current variable rate of 5.50% p.a.
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$280,000 (40%) is fixed at 5.20% p.a. for three years
Your new monthly repayments would be:
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variable component - $2,385
-
fixed component - $1,538
This would be a total of $3,923 a month.
Taking this split option would see you pay less interest on the loan ($727,726) than if you'd left the entire loan amount on a variable rate ($730,828) - a saving of more than $3,100 over the life of the loan
If you'd decided to fix part of the loan for five year, the total interest savings would have been more than $5,000.
When a split loan could work for you
Splitting your loan can potentially save you money during periods of rising interest rates as it will leave one portion of your loan unchanged, generally at a lower rate, as variable interest rates rise.
Conversely, they may also see you pay more in interest if your variable rate falls below the fixed rate you are paying but, as with most financial matters, it can all come down to the numbers.
How to decide whether to split your home loan
Our split loan calculator is a good place to start but it's wise to speak to the professionals - a financial advisor or mortgage broker - on whether it could be the right move for you.
They can offer their view on the prospective movement of interest rates and the ratio of variable to fixed rate that could be best for your circumstances.
How do I split my home loan?
If you want to split an existing home loan, you will need to submit an application with your bank or lender. Technically, it involves taking out two home loans rather than one.
If you haven't already got a loan, you can apply to set up a new home loan under a split loan structure. Your bank, lender, or mortgage broker can assist you with the process.
Frequently Asked Questions
Splitting your home loan allows you to benefit from a variable and a fixed rate home loan, whilst minimising the risks involved in doing so.
Having a portion of the home loan secured in a fixed rate means there will be a level of security and predictability in your repayment schedule, and any rate hikes will not impact this rate. On the other hand, the portion of your mortgage that has a variable rate means you can remain somewhat flexible, and if the standard variable rate dips you can take advantage and cut costs.
Essentially, if the interest rate rises, you won’t be as harshly affected. At the same time, if the interest rate falls, you won’t be kicking yourself for missing out.
It will all ultimately come down to the numbers when deciding whether a split home loan is right for you. Ideally, you want to know how much you’ll be saving in interest if you split it, and whether a fixed or variable interest rate is going to be more favourable.
The calculator is a useful starting point, but it’s advised that borrowers speak to a qualified and professional mortgage broker or financial adviser that can give expert advice on what option will be most beneficial.
If you decide you want to split your mortgage, a professional can advise you on what portion you want to have a fixed rate and what portion to have a variable rate. It’s important to understand the benefits, but also the limitations of both loan types.
A split loan is a type of loan. While you technically do have two or more loans, you generally can’t split it between different lenders.
As mentioned, you can split an existing home loan. This will depend on your current situation (for example, whether you have a fixed or variable rate loan) and whether your lender offers split loans. You could also refinance to a split loan. Ultimately, it comes down to you and your lender.
You may be able to pay off your loan faster with a split loan if you use the features of the variable portion to your advantage. For example, if you make extra repayments, deposit money into an offset account, or see your interest rate drop - this could save you time and interest charges on your loan. However, having a split loan alone will not see you pay off your loan faster - that will come down to you.
Split loans are not only available to owner occupiers; you can also split your home loan if you’re an investor. Of course, you will still need to submit an application and be approved by your lender.
Generally speaking, a guarantor should be able to assist you with securing a split loan. A guarantor could help you borrow a higher amount - in some cases, 100% or even 105% of the loan to value ratio (LVR). In the event you were unable to make your mortgage repayments on either your fixed or variable portion of your loan, the responsibility would then fall on your guarantor.
Since 1995 we've been helping Australians learn about home ownership, compare home loans and get help from home loan specialists to find the right home loan for them.
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