Mortgage Repayment Calculator

Calculate your monthly home loan repayments, total interest, and full repayment cost for any Australian mortgage.

Loan amount

The amount you are borrowing, not including deposit or fees.

Annual interest rate

Your lender's advertised rate. Variable rates move with the RBA cash rate.

Loan term

Most Australian home loans are 25–30 years. Some lenders offer up to 40 years. Longer terms lower monthly repayments but significantly increase total interest.

Principal and interest repayments only. Does not include fees, lenders mortgage insurance, or rate changes over time. General guidance only — not financial advice.

Loan balance vs interest paid

30-year amortisation — hover to inspect each year

Remaining balanceCumulative interest paid

As you pay down the loan, more of each repayment goes to principal and less to interest. The two lines cross at the point where cumulative interest exceeds the remaining balance.

Home loan basics

How your repayment is calculated

Your monthly repayment is determined by three things: the loan amount, the interest rate, and the loan term. The standard principal-and-interest formula spreads your debt so that each payment covers the interest accrued that month plus a slice of the principal. Early payments are mostly interest; later payments are mostly principal. This is why extra repayments early in the loan save the most.

The RBA cash rate and your mortgage

Australia's variable mortgage rates are heavily influenced by the Reserve Bank of Australia (RBA) cash rate. When the RBA raises the cash rate, lenders typically pass the increase on to variable-rate borrowers within days. A 0.25% rate rise on a $600,000 loan adds roughly $95 to your monthly repayment. Fixed-rate loans are unaffected during the fixed period but revert to a variable rate afterwards.

Variable vs fixed rate loans

Variable rate loans offer flexibility — you can make extra repayments, use an offset account, and benefit when rates fall. Fixed rate loans give certainty — your repayment stays the same regardless of RBA decisions, making budgeting easier. Many Australians use a split loan, fixing a portion of their debt while keeping the rest variable to balance certainty with flexibility.

How to reduce total interest paid

The two most effective strategies are: making extra repayments whenever possible (reducing your principal faster cuts future interest), and using an offset account (your savings balance offsets the principal you're charged interest on). Even a $20,000 offset balance on a $600,000 loan at 6.5% saves over $1,300 per year in interest. Switching to fortnightly repayments instead of monthly also makes one extra full payment per year.

Frequently asked questions

What is the current mortgage interest rate in Australia?: Variable home loan interest rates in Australia typically move in line with the RBA cash rate and currently range from around 5.5% to 7.5% depending on the lender, loan type, and your LVR (loan-to-value ratio). Owner-occupier principal-and-interest loans receive the lowest rates. Always compare the comparison rate — not just the advertised rate — as it includes most fees and gives a more accurate cost.
What is the standard home loan term in Australia?: The most common loan term in Australia is 30 years, though 25 years is also popular. Shorter terms (15–20 years) mean significantly higher monthly repayments but far less total interest paid over the life of the loan. A $600,000 loan at 6.5% costs roughly $765,000 in interest over 30 years — but only around $455,000 over 20 years.
What is an offset account and how does it reduce interest?: An offset account is a transaction account linked to your mortgage. Instead of earning interest on your savings, the balance reduces the principal you are charged interest on. If you have a $600,000 loan and $50,000 in your offset, you pay interest on $550,000. This can shave years off your loan and save tens of thousands in interest, all while keeping your savings accessible.
What is LVR and how does it affect my interest rate?: LVR (Loan-to-Value Ratio) is your loan amount expressed as a percentage of the property's value. Borrowing $480,000 against an $800,000 property gives an LVR of 60%. Lenders offer lower rates to borrowers with lower LVRs because the loan is less risky. Borrowing above 80% LVR typically triggers Lenders Mortgage Insurance (LMI), which can cost tens of thousands of dollars.
Can I make extra repayments on my Australian mortgage?: On most variable-rate loans, yes — and it is one of the best things you can do. Extra repayments reduce your principal immediately, cutting the interest charged in every future month. Many fixed-rate loans cap extra repayments at $10,000–$30,000 per year during the fixed period. Check your loan contract or ask your lender before making large lump-sum payments on a fixed loan.
What other costs should I budget for when buying a home?: Beyond the loan repayments, budget for stamp duty (typically 3–6% of the property price depending on your state), conveyancing and legal fees ($1,500–$3,000), building and pest inspection ($400–$800), lenders mortgage insurance if your LVR is above 80%, and ongoing costs like council rates, strata fees, and building insurance. First home buyers may be eligible for stamp duty exemptions or concessions.