Mortgage Repayment Calculator

Calculate your mortgage repayments

Are you trying to determine how much your home loan repayments will cost every month, or the total interest you’ll pay over the life of your mortgage? Sounds like you need a mortgage calculator.

Our home loan repayment calculator might be just the thing to help you better manage your mortgage in the years ahead. To use this online mortgage calculator: enter your expected loan amount, interest rate, home loan term, payment frequency, and choose either principal and interest or interest only.

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Please Note: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Consider whether you need financial advice from a qualified adviser.


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What can you do with a repayments calculator? Find out how your monthly repayments could change in a home loan at different interest rates and loan terms, with our CANSTAR Repayments Calculator.

Repayments on a home loan are usually made monthly, and they constitute the interest charged on your loan balance plus a small portion of your loan principal amount, unless you choose an Interest Only loan. Your monthly repayment is determined by your interest rate and your loan term, and it affects how much interest you pay over the life of your loan.You can change the size of your monthly repayment by changing many factors discussed below. The CANSTAR Repayments Calculator makes these repayment calculations easy and in just a few clicks, you can imagine different ways of repaying your loan.

Find out how you can make your repayments more affordable with CANSTAR's Home Loan Repayments Calculator

How we made our calculations

The calculations we’ve made are based on inputting the following data into our calculator, except where we have specified otherwise.

  • Loan Amount: $350,000
  • Repayment Type: Principal + Interest
  • Repayment Frequency: Monthly
  • Interest Rate: 89% (average standard variable interest rate on our database at time of writing)
  • Home Loan Term: 25 years
  • Basic monthly repayments based on these figures: $2,024/month
  • Total interest repayable over life of loan: $257,109

According to CANSTAR’s comprehensive research database, the majority of Australians (60%) are looking for a loan amount of between $350,000 and $749,000 – so we’ve based our home loan calculations for this article on a loan of $350,000. You can enter the specific loan amount you are looking for in our home loan calculators and our comparison of home loans on the market.

Disclaimer

How much you can afford to repay per month is dependent on your personal financial situation, which will differ from the figures we have used in this calculation. You should carefully consider your own income and expenses when using our calculator to try out different monthly repayments.

CANSTAR makes no guarantees that your financial institution of choice will offer you monthly repayments of a certain amount, and you should speak with a financial adviser before making any decisions.

Repayment Type

Switch from Principal + Interest to an Interest Only loan, and you won’t actually repay the principal on your loan, but you will pay less per month in total.

Repayment Type Monthly repayment Interest over loan term
Principal + Interest $2,024 $257,109
Interest Only $1,426 $427,875

Obviously, if you are able to make additional repayments – without incurring extra fees and charges for it – you will be able to pay off your loan faster and pay less interest over the life of the loan. Use our Home Loan Extra Repayments Calculator to work out how additional repayments could affect your loan.

Interest Rate

Changing the interest rate on your loan makes a massive difference to your monthly repayments. This is why it’s so important to compare your options on the CANSTAR website and find the best value home loan for your situation.

If you choose a loan at the minimum variable rate available on our database at the time of writing (for a loan of $350,000 on the terms listed above), your monthly repayments could be $70,000 less than if you choose a loan at the maximum variable rate available.

Interest Rate Monthly repayments
3.85%(min variable rate) $1,819/month
4.89%(average variable rate) $2,024/month
6.31%(max variable rate) $2,322/month

Splitting your interest rate

Splitting your home loan between variable and fixed interest rates can also make a great difference to the cost of your monthly repayments. Try our Home Loan Split Calculator to see how splitting your home loan between variable and fixed interest rates at different amounts can affect your monthly repayments. Not every financial institution offers a split loan option, however, so check the Split Loan Option column in our comparison tables.

Don’t forget the other costs

We would be remiss if we didn’t remind you that there is more to the cost of a home loan than the interest rate the institution charges. Remember to also look at the comparison rate, ongoing fee, and up-front fee listed when you’re comparing home loans using our comparison tables.

Loan Term

If you increase your loan term by just 5 years to a 30-year loan term, you could pay hundreds of dollars less per month in repayments – but tens of thousands of dollars more in interest over the life of the loan.

For example, by increasing your loan term from 25 years to 30 years, your monthly repayments decrease by $169/month, but the interest you pay overall increases by $60,841.

Loan Term Monthly repayment Interest over loan term
25 years $2,024 $257,109
30 years $1,855 $317,950

Loan Amount

The most obvious way to make your loan more affordable is to apply for a smaller loan amount. This will mean either saving more for your deposit beforehand, or searching for a less expensive home to buy.

If you decreased your $350,000 expected loan amount by $50,000 to a $300,000 loan amount, you could pay $300 less per month in repayments, and $37,000 less in interest.

What about a smaller reduction? If you decreased your $350,000 expected loan amount by just $5,000 to $345,000, your monthly repayments will decrease only slightly, but you’ll pay $4,000 less in interest over the life of your loan.

Loan Amount Monthly repayment Interest over loan term
$450,000 $2,602/month $330,569
$445,000 $2,573/month $326,896
$400,000 $2,313/month $293,839
$395,000 $2,284/month $290,166
$350,000 $2,024/month $257,109
$345,000 $1,995/month $253,436
$300,000 $1,735/month $220,379

Home loan calculators to help you work out your financial position

Use CANSTAR’s home loan calculators when you’re doing your sums about how much you can afford to borrow in a home loan:

Written by: TJ Ryan

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Disclaimer

Sponsored products are paid advertisements and do not include all providers. Canstar receives a fee for referring you to the advertiser. Canstar is not giving you advice in relation to sponsored products.

Products displayed above that are not “Sponsored” are sorted as referenced in the introductory text and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information.

Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. If you decide to apply for a home loan, you will deal directly with a financial institution not with Canstar. Rates and product information should be confirmed with the relevant financial institution. Home Loans in the table include only products that are available for somebody borrowing 80% of the total loan amount. For product information, read our detailed disclosure, important notes and additional information. Read the comparison rate warning. The results do not include all providers and may not compare all the features available to you. Canstar may earn a fee for referral of leads from the comparison table. See how we get paid.