Loan Repayment Calculator

Principal and interest repayments pay off the loan balance as well as the interest, so the debt falls over time. Interest-only repayments cover just the interest for a set period, often a few years, so they are lower but the balance does not reduce. When the interest-only period ends, repayments rise because the full balance must be repaid over a shorter remaining term.

On a variable rate loan, your repayment rises whenever your lender raises its rate, and the effect grows with the loan size. Run this calculator at your current rate and again at a rate one or two percentage points higher to see the difference for your loan. If the higher figure would stretch your budget, it is worth talking through a buffer or fixed rate option.