Last Updated: 3rd June, 2024

You can use this calculator to work out your home loan repayments with different loan sizes, interest rates, loan terms and repayment options.

How To Calculate Mortgage Repayments

To find out your mortgage repayment, simply put the following information into the calculator, and you will get the result.

  • Loan amount: The total amount of money you’re borrowing from the lender to purchase your property.

  • Loan term: The duration over which you’ll repay the loan, typically measured in years.

  • Interest rate: The percentage of the loan amount the lender uses to calculate interest, influencing your overall repayment amount.

  • Loan repayment type: The method by which you’ll repay the loan, such as principal-and-interest payments or interest-only payments.

  • Frequency: How often you’ll make repayments, whether monthly, fortnightly or weekly.

The formula for calculating monthly mortgage repayments is:

M = P * [r * (1 + r)^n] / [(1 + r)^n – 1],

where M is the monthly repayment amount, P is the principal (loan amount), r is the monthly interest rate (annual interest rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12).

What Interest Rate Should I Use?

A good starting point is to check the rates the lenders of your choice offer. Visit their websites to find their standard variable rate, which serves as a baseline for estimating your repayments.

Additionally, consider using the comparison rate, which includes fees and charges, for a more accurate picture of your monthly payments.

Tip: Consider the Buffer Rate

Assessing your ability to afford the loan involves more than just the variable rate. Lenders often apply a buffer rate to calculate your borrowing power. This buffer acts as a safety net, allowing for potential future rate increases and ensuring you can still comfortably manage repayments. By factoring in this buffer, both you and the lender are better protected against unexpected financial challenges.

What Loan Term Should I Use?

Most mortgages in Australia are for a 30-year term. However, you can choose any term you like up to 40 years, which is the maximum term offered in Australia. Be aware that the shorter your term, the higher your repayments, but also the faster you pay off the loan, the less interest you will ultimately pay.

How To Calculate Extra Mortgage Repayments

Making extra mortgage repayments can have a huge impact on your financial future by reducing your total interest paid and shortening your loan term. By paying more than the minimum required amount, you directly reduce the principal balance on your loan, which decreases the total interest you’ll pay over the life of the loan.

To see the potential benefits for yourself, try using our Extra Repayments Calculator. This allows you to input your mortgage details and explore how making additional repayments can affect your loan term and overall savings. Simply input your current mortgage balance, interest rate, desired extra repayment amount, and when you’ll start contributing to it, and the calculator will provide you with valuable insights into your financial future.

More Home Loan Calculators And Tools To Help You

FAQs: Home Loan Repayment Calculator

We’re Here To Help

The home loan repayment calculator is a helpful tool for estimating your mortgage payments, but it’s important to keep in mind that the results are based on certain assumptions and may not reflect the exact terms of your loan. That’s where the expertise of our Home Loan Experts mortgage brokers comes in.

At Home Loan Experts, we care deeply about helping you find the right interest rate for your situation from the wide range of lenders on our panel. We will do all the legwork of finding and applying for a home loan for you. Call us at 1300 889 743 or enquire online for free today.


The results from this calculator should be used as a guide only.They do not constitute a loan approval, quote or an offer to lend. The calculator is not to be relied on for making a final decision on a financial product.

Code errors or delays with updating the calculator may cause your result to be inaccurate.

You should obtain a formal approval from a lender before making any offer on a property or any financial decision that relies on a new mortgage.