How to use the home loan repayments calculator?

Understanding what your home loan or mortgage repayments will be is extremely important, in particular the amount of your total loan repayments versus the total interest charged. For your given loan or mortgage, just enter your loan amount, loan term (in years), repayment type which will either be principal and interest or interest only, the repayment frequency (monthly, fortnightly, weekly) and your annual interest rate.

*It is important to note that the calculations or estimates provided here are for informational purposes only and should not be considered as financial advice. It is recommended that you consult with a qualified accountant or financial advisor before making any decisions based on the information provided.

Calculator inputs and their definitions

1. Loan amount: this is the outstanding or remaining balance of your home loan or your principal balance. This excludes any amounts in your offset account.
2. Loan term (in years): this is the number of years remaining on your loan.
3. Repayment type: Most banks offer two repayment methods for your home loan or mortgage - principal and interest or interest only.
   1. Principal and interest: this means that a portion of your monthly loan repayments will be put towards paying down your principal, as well as the interest it accrues.
   2. Interest only: this means that your monthly loan repayments will only be paying down the interest your loan accrues. This means that for your interest only period, your principal balance or loan amount does not change.
4. Annual interest rate: this is the annual interest rate on your loan. This can either be a fixed or a variable rate. It is important to note that our home loan repayments calculator will use this interest rate for the life of the loan.

An example scenario

Amanda is looking to purchase her first home and is wanting to understand what her principal and interest monthly repayments would be for a $650,000 purchase price on a 30 year loan term at 6.50%.

Using the personal tax calculator, Amanda's inputs are:

1. Loan amount: $650,000
2. Loan term (in years): 30
3. Repayment type: Principal and Interest
4. Annual interest rate: 6.50%

The home loan repayments calculator will automatically determine Amanda’s total loan repayments and total interest charged for the life of the loan. This is based on the whether you make principal and interest repayments, or interest only repayments for a period of 1-5 yrs.

1. Total interest charged = $829,039.17
2. Total loan repayments = Loan amount + Total interest charged = $650,000 + $829,039.17 = $1,479,039.17

The chart will also plot your loan balance year on year, to give you an indication of how it changes over the loan term.