Extra Loan Repayments Calculator

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*iSelect is the trading name of iSelect Mortgages Pty Ltd (ABN 86 148 217 181). iSelect Mortgages Pty Ltd is a credit representative (Credit Representative 400540) of Auscred Services Pty Ltd (Australian Credit Licence 442372). iSelect provides a referral to Lendi Pty Ltd, a Credit Representative of Lendi Group Finance Pty Ltd (Australian Credit License 442372). iSelect Mortgages Pty Ltd receives a commission from the Licensee for each new customer account created and for each home loan submitted through this service. Learn more.

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Updated 09/09/2021

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Updated 09/09/2021

Find out more about how we make money.

View our Privacy Policy.

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We partnered with Lendi* to help you compare home loans from over 25 lenders and over 2,500 home loan products.

What are extra repayments on a home loan?
Who can make extra home loan repayments?
How much might I save with extra loan repayments?
See if you can save money with our Extra Repayment calculator
What do the results mean?

Paying off your mortgage and owning your home outright – it’s the great Aussie dream. For many, it may seem like a pipe dream, but by making extra mortgage repayments, owning your home could become a reality sooner.

What are extra repayments on a home loan?

As the name suggests, extra repayments on a home loan are anything you pay into your loan that’s over the amount of your agreed monthly mortgage payments. By reducing the loan, even by a little, you reduce the interest that is being charged, and over the course of a 25-year mortgage, this could save you a lot of money. The Australian Government’s Moneysmart website says that extra repayments can cut your loan by years.

It can be as simple as paying a little extra each month or fortnight. You could also put your work bonus (if you get one) or tax refund (same) directly into your mortgage. They say that the first five to eight year’s payments on a typical 25-year mortgage go towards paying off interest. So, any extra payments you make during that time will reduce the interest you pay and go towards helping you own your home sooner. Extra repayments early in the loan can also give you a handy buffer should interest rates rise in the future.

Who can make extra home loan repayments?

Unfortunately, not every borrower is able to make additional repayments towards their home loan. If you have a variable rate home loan, you’ll typically be able to make unlimited extra repayments. But, most lenders place a number of restrictions on fixed rate mortgages. A common restriction prohibits borrowers from making extra repayments without penalty.

If you choose to make extra repayments anyway, you may be charged break costs. However, many lenders do allow fixed rate borrowers to make extra repayments up to a certain amount annually. Depending on your needs, this might be enough to help you meet your goals. If having the ability to make extra repayments is a priority for you, speak with your lender or a mortgage broker.

How much might I save with extra loan repayments?

The interest on your mortgage is calculated on a daily basis. So, even paying an extra $100 per month could save you thousands in interest over the life of the mortgage and help pay off your home years in advance. Not surprisingly, the more ‘extra’ you pay, the more you’ll save in interest, and the sooner you could own your home. iSelect’s extra repayment calculator above can give you a good indication of just how much you can save. When you see the difference that even a little extra each month can save you, it’s not just interesting, it’s inspiring.

See if you can save money with our Extra Repayment calculator

It’s easy to use our Extra Repayments calculator – just enter the details listed below:

  1. The amount you have borrowed or plan to borrow.
  2. The interest rate you’re currently paying.
  3. Your loan type – variable, fixed or introductory.
  4. Frequency of repayments – monthly, fortnightly or weekly.
  5. Frequency and value of planned extra repayments and when you plan to start paying them.

What do the results mean?

The Extra Repayments calculator shows both the principal amount outstanding on the loan at certain times in the loan’s life, and the amount outstanding if you made extra repayments of the entered amount. You can work in reverse, too.

Choose when you want to have your home paid off, and our Extra Repayments calculator will give you an idea of the extra repayments needed to meet your target. You can also check out a yearly breakdown of the result. It shows the principal amount owing with no extra repayments, versus the principal amount owing with extra repayments.

It also shows the total cumulative interest saved for each year of the loan. As we said, it’s inspiring. Have a play around with different repayment figures, and when you see what’s possible, you’ll be inspired to cut the life expectancy of your loan, and live mortgage free.

Compare home loans with Lendi and see if you could save even more.

A better home loan can accelerate your mortgage-free dream. So, iSelect has partnered with Lendi to help customers compare home loans from a range of lenders to help find a better deal. Compare home loans with Lendi online, or give Lendi a call on 1300 186 260 (08:30-18:30).

Get started on comparing home loans today!*

Find a home loan by comparing with iSelect’s trusted partner, Lendi.

*iSelect is the trading name of iSelect Mortgages Pty Ltd (ABN 86 148 217 181). iSelect Mortgages Pty Ltd is a credit representative (Credit Representative 400540) of Auscred Services Pty Ltd (Australian Credit Licence 442372). iSelect provides a referral to Lendi Pty Ltd, a Credit Representative of Lendi Group Finance Pty Ltd (Australian Credit License 442372). iSelect Mortgages Pty Ltd receives a commission from the Licensee for each new customer account created and for each home loan submitted through this service.