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Extra Repayments Calculator

How to calculate your savings?

Using the extra repayments calculator is very simple. Work out how much you can afford to repay each month, enter the details of your loan into the calculator and then enter the difference between the normal repayments and the amount you can afford to repay into the extra repayment section.

The calculator will then work out the length of your new mortgage term and the total amount that you will save.

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Why make extra repayments on your mortgage?

Making extra repayments instead of, for instance, putting more in super, is a simple and effective way to minimise the length of your loan and reduce the interest payable. If you refinance to a lower interest rate and then start to make those extra repayments, it can be even more beneficial!

By making higher repayments you reduce the principal on your loan much faster. Even with a small $100 /month additional repayment, this will make a very large difference on the total cost of your mortgage.

Can I make extra repayments to my offset account?

Yes, making additional repayments to a 100% offset account will have the same effect as if you had made the extra repayments to your loan account.

If you are disciplined with your money then it is better to make those extra payments to your offset account. This will enable you to access the funds in the future with greater ease. Of course if you access the funds you have paid into your offset account then you will lose the benefit from making your additional repayments.

To find out more about how an offset account works or to calculate your average offset balance please see our 100% offset account page.

More mortgage calculators

You can access a range of mortgage calculators on our website which will help you to work out your borrowing capacity and the cost of your mortgage. If you wish to speak to an expert mortgage broker, please call us on 1300 899 743 or enquire online and we can let you know which lenders can approve you.

  • Thomas

    Hi Home Loan Experts, is payment on the offset account more beneficial than saving money? Can someone explain me.

  • Hi Thomas, generally putting money on an offset account is either the same or better than your savings. The account earns no interest, however the bank will take the balance into account when calculating your loan interest.

    Nonetheless, if the interest rate you get on a saving account is higher than your mortgage repayment rate you would be better off with putting money in a savings account or vice-versa.

  • Logue

    Are there any tax benefits to making extra repayments on my mortgage?

  • Hey Logue,

    Making extra home loan repayments has no immediate tax benefit. In addition, any extra repayments that you make can be easily withdrawn again via a redraw facility or an offset account. If you’re not disciplined enough, or your current expenses won’t allow you to, it can easily have you lose the benefit of making extra mortgage repayments.

  • rombeli

    The offset account thing sounds great. Can I have a simple calculation example?

  • Hi rombeli,

    Say you had a home loan of $500k and an offset account with $100k in it. This would mean bank would only charge you interest as if you owed them $400k. Instead of earning $3.5k p.a. on the $100k in a 3.5% savings account, you can save $5k in interest. Also, the ATO would tax you on the $3,500 interest you earn from the savings account you actually end up even further ahead by choosing an offset account. Hope this helps. You can try out your own calculations here:
    http://www.homeloanexperts.com.au/home-loan-types/100-offset-home-loan-account/