Home Loan Repayment Calculator
Work out your mortgage repayments, total interest and how much faster you could pay off your loan with extra repayments or an offset account.
Loan balance over time
| Year | Interest paid | Principal paid | Balance |
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Printed from ClearCalc (clearcalc.com.au/home-loan-calculator/). Estimates only, not financial advice.
How home loan repayments are worked out
Most Australian home loans are principal and interest. Each repayment covers the interest charged since your last payment, and the rest pays down the loan. Early on, most of each repayment is interest. By the end, most of it is principal.
The repayment formula is P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the interest rate per repayment period and n is the number of repayments. For a $600,000 loan at 6.5% over 30 years, that's about $3,792 a month, and about $765,000 in interest over the life of the loan.
Monthly, fortnightly or weekly?
Banks calculate fortnightly and weekly repayments slightly differently, but the big win comes from one simple habit: pay half your monthly repayment every fortnight. There are 26 fortnights in a year, so you make the equivalent of 13 monthly repayments instead of 12. On a $600,000 loan at 6.5%, that could save around $176,000 in interest and take about six years off the loan.
Ways to pay your loan off faster
- Extra repayments. An extra $200 a month on the same loan saves around $122,000 in interest and finishes about four years early.
- Offset account. Money in an offset account reduces the balance you're charged interest on. $50,000 sitting in an offset could save more than $230,000 over 30 years, and you can still access the money.
- Keep your repayment when rates fall. If your rate drops, keep paying the old amount.
- Check your rate every year or two. A lower rate is the fastest way to cut interest. Use the refinance calculator to see if switching is worth it.
Interest-only loans
With an interest-only loan you pay just the interest for a set period, often up to five years, and the balance doesn't go down. Repayments then rise, because the full loan has to be repaid over the remaining years. They suit some investors, but for most home owners they cost much more in total.
In September 2026 the average variable home loan rate was about 6.90%, with the lowest advertised rates under 6%. Your rate depends on your lender, deposit and loan type. This calculator gives estimates only and doesn't include fees such as application, valuation or annual package fees.
Frequently asked questions
What are the repayments on a $600,000 home loan?
At 6.5% over 30 years, monthly repayments are about $3,792. Fortnightly repayments are about $1,750 and weekly about $875. Every 1% change in the rate moves the monthly repayment by roughly $390.
How much are repayments per $100,000 borrowed?
At 6.5% over 30 years, each $100,000 costs about $632 a month. Multiply that by your loan size for a quick estimate.
Do extra repayments really make a difference?
Yes. Extra money goes straight to the principal, so you pay less interest from then on. On a $600,000 loan at 6.5%, an extra $200 a month saves about $122,000 and four years. Check your loan allows extra repayments, as some fixed-rate loans limit them.
How does an offset account work?
An offset account is a transaction account linked to your home loan. Its balance is subtracted from the loan before interest is worked out. With $50,000 in offset on a $600,000 loan, you pay interest on $550,000 only, while your repayment stays the same, so the loan is paid off sooner.
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.