Extra Repayments Calculator
See how much interest and how many years you could save by paying a little extra each month, or a one-off lump sum, off your home loan.
Loan balance over time
Assumes a principal and interest loan with monthly repayments, a rate that doesn't change and no fees. Your regular repayment stays the same after a lump sum.
Printed from ClearCalc (clearcalc.com.au/extra-repayments-calculator/). Estimates only, not financial advice.
Why extra repayments save so much
Interest on a home loan is charged on the balance you still owe, usually worked out daily and charged monthly. Every extra dollar you pay goes straight to the principal, so from that day on you're charged less interest. Your regular repayment doesn't change, which means more of each future repayment pays down the loan, and the savings snowball.
For example, on a $600,000 loan at 6.0% over 30 years, the standard repayment is about $3,597 a month. Adding $200 a month saves roughly $107,000 in interest and finishes the loan about four years early. A one-off $20,000 lump sum at the start saves even more, because it has the full 30 years to work.
Lump sums or regular extras?
- Lump sums such as a tax refund or bonus are most powerful early in the loan, when the balance is highest.
- Regular extras are easier to stick with. Setting your repayment a little higher, or paying half your monthly repayment every fortnight, quietly adds up.
- An offset account gives a similar saving while keeping your money available. Compare it with the offset calculator.
Things to check first
- Fixed-rate loans often limit extra repayments, for example to $10,000 a year, and may charge break costs above that. Variable loans usually allow unlimited extras.
- Redraw rules. Extra repayments can usually be redrawn, but some lenders charge a fee or set a minimum, and the bank can reduce or freeze redraw.
- Higher-interest debt first. Paying off a credit card or car loan usually saves more than extra home loan repayments.
- Your rate. If your rate is high, refinancing can save as much as extra repayments, with less effort.
See your full repayment schedule with the home loan calculator, or check how a rate change affects you with the interest rate rise calculator.
Estimate only. Real savings depend on how your lender charges interest, rate changes over the life of the loan and any fees.
Frequently asked questions
How much do extra repayments save on a home loan?
On a $600,000 loan at 6.0% over 30 years, an extra $200 a month saves about $107,000 in interest and around four years. An extra $500 a month saves roughly $213,000 and nearly eight years.
Is it better to make extra repayments or use an offset account?
The interest saving is the same for each dollar. Extra repayments may suit you if you'd be tempted to spend the money. An offset keeps the cash easier to access and can be better if you might later turn the home into an investment property.
Can I get extra repayments back?
On most variable loans you can redraw extra repayments, but lenders can set limits, charge fees or reduce the redraw amount. Check your loan terms before relying on redraw for emergencies.
Do extra repayments lower my regular repayment?
Usually not. Most lenders keep your scheduled repayment the same and the loan simply finishes sooner. Some will recalculate a lower repayment if you ask.
Official sources used for this calculator include: Moneysmart – Home loans, APRA – Australian Prudential Regulation Authority, Housing Australia – Home Guarantee Scheme. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.