Mortgage Repayment Calculator Australia
Estimate Australian home-loan repayments when buying, refinancing, or stress-testing affordability under different deposit, rate, and term scenarios.
How Australians use repayment estimates
Repayment estimates are used to compare buying scenarios, refinance savings, and rate-stress outcomes. The useful question is not only “what is the repayment today?” but also “what still feels safe if rates, deposit, or loan structure change?”
Who this page is for
Use this page if you are comparing owner-occupier and investor repayments, checking whether your current budget survives a higher-rate environment, or deciding between offset, extra repayments, and refinance options.
Key Australian takeaways
- A repayment estimate is most useful when paired with a 1% and 2% rate-rise stress test.
- Offset and extra repayments can both reduce interest, but they do not work the same way.
- Borrowing power may tell you what a lender could approve, while this page helps you judge what still feels safe in your own cash flow.
📈 Loan Balance Trend
📊 Principal vs Interest Composition
📋 Annual Repayment Schedule
| Year | Principal | Interest | Loan Balance |
|---|---|---|---|
| Y1 | $7,570 | $39,467 | $632,430 |
| Y3 | $8,567 | $38,471 | $615,809 |
| Y5 | $9,695 | $37,343 | $597,001 |
| Y7 | $10,971 | $36,066 | $575,716 |
| Y9 | $12,416 | $34,622 | $551,629 |
| Y11 | $14,050 | $32,987 | $524,372 |
| Y13 | $15,900 | $31,138 | $493,525 |
| Y15 | $17,993 | $29,044 | $458,617 |
| Y17 | $20,362 | $26,675 | $419,114 |
| Y19 | $23,043 | $23,995 | $374,409 |
| Y21 | $26,077 | $20,961 | $323,820 |
| Y23 | $29,510 | $17,528 | $266,569 |
| Y25 | $33,395 | $13,643 | $201,782 |
| Y27 | $37,792 | $9,246 | $128,465 |
| Y29 | $42,767 | $4,271 | $45,495 |
| Y30 | $45,495 | $1,542 | $0 |
📌 Repayment Summary
💡 Interest Saving Tips
- • Fortnightly repayments can reduce total interest by ~8%
- • Extra $200/month can shorten your loan by 4-5 years
- • Offset accounts reduce the interest calculation base
- • Fixed vs variable rates each have pros and cons
- • LVR > 80% requires LMI insurance
Related Calculators and Guides
Explore more tools to compare borrowing, upfront costs, tax impact, and home-buying strategy in one workflow.
Mortgage Repayment Calculator Australia (2026)
Last updated: March 13, 2026
What changes your repayment most
- Interest rate changes usually move repayments more than any other single factor.
- Loan term changes can lower monthly repayments but increase total interest.
- Deposit size affects the starting loan amount and LVR, which changes repayment pressure.
- Extra repayments can reduce total interest and shorten payoff years materially.
Rate-rise scenario
A 1% rate rise can noticeably increase monthly repayments on a typical Australian mortgage. That is why a realistic budget should be tested against a higher-rate scenario instead of only the current headline rate.
1% higher rate
A 1% increase is a practical baseline stress test for buyers who want to know whether their current budget still has room to breathe.
2% higher rate
A 2% increase is useful for tighter households or investors comparing how much buffer remains if rates or other expenses move against them.
Offset and extra repayments
Extra repayments usually reduce balance faster and shorten the loan. An offset account works differently: it reduces the balance used to calculate interest, which may lower total interest without always changing the required monthly repayment.
Offset account
Usually better for borrowers who want liquidity and flexibility while still reducing interest on the linked home loan balance.
Extra repayments
Often better for borrowers focused on shrinking principal faster, provided the loan structure does not limit redraw or future flexibility.
Australian examples
- Owner-occupier example: comparing a 25-year term with a 30-year term may lower monthly repayments, but total interest can rise materially.
- Investor example: comparing interest-only with principal-and-interest can improve short-term cash flow, but it also slows principal reduction and changes the long-run cost profile.
How to use this with borrowing power and upfront costs
Use borrowing power first to set a realistic price range, compare deposit and upfront costs next, and then stress-test repayments here so your plan works from approval through settlement and beyond.
Sources
- Public lender amortization and repayment documentation
- ASIC Moneysmart home-loan, offset, and budgeting guidance
- APRA housing lending standards and public responsible-lending references
For investment property scenarios, compare the repayment outcome with tax impact in the Negative Gearing Calculator.
Repayment FAQ
How much are mortgage repayments in Australia?
Repayments depend on the loan amount, interest rate, term, and repayment type. It is safer to compare multiple scenarios than to rely on one headline number.
How much does a 1% rate rise change repayments?
It can materially increase monthly repayments, especially on larger loans. Testing a higher-rate scenario is a practical stress check.
Do extra repayments make a big difference?
Often yes. Regular extra repayments can reduce total interest and shorten the loan term meaningfully.
Does offset reduce monthly repayment or total interest?
Offset usually reduces total interest by lowering the balance used for interest calculations, but it does not always directly reduce the required monthly repayment.
How should I compare repayment estimates with borrowing power?
Borrowing power shows what a lender may approve. Repayment estimates help you decide whether that number still feels safe and manageable in your own budget.
Official References
Repayment planning should reflect prudential lending standards and consumer guidance.
- According to APRA housing lending standards, lenders apply serviceability buffers above current rates when assessing repayment capacity.
- According to MoneySmart home loan guidance, borrowers should compare repayment structure, fees, and flexibility before choosing a loan.
Reviewed: March 3, 2026