Extra Repayments Calculator

More than most people expect, because every extra dollar reduces the balance that interest is charged on for the rest of the loan. The saving is largest early in the term, when the balance is highest. The calculator shows the interest saved and the years removed for your figures. Even a modest regular amount, kept up consistently, can take years off a 30-year loan.

Usually only up to a limit. Many lenders allow only a set amount of extra repayments each year during a fixed rate period and may charge break costs or fees above it. The limit varies from lender to lender. Variable rate loans generally allow unlimited extra repayments. Check your loan contract or ask us to confirm your lender's rules before you pay a lump sum.

For most owner-occupiers the interest saving is the same, because money in a 100% offset account reduces interest just like a repayment. The difference is access and flexibility. Offset funds stay yours to withdraw, and if the home later becomes an investment property, keeping the loan balance high can matter for tax. Ask your accountant how this applies to you.

Paying half your monthly repayment every fortnight can shorten your loan, because there are 26 fortnights in a year, which adds up to 13 monthly repayments instead of 12. Paying weekly works the same way. Check whether your lender calculates the fortnightly figure this way, as some simply divide the annual total and the saving disappears.