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Extra Mortgage Repayments Calculator
Extra Mortgage Repayments Calculator
Written by
Tina Sendin
Edited by
Andrew Kemp
Reviewed by
Sam HymanCompare home loans the easy way
We partnered with Aussie to help you compare home loans from over 25 lenders and over 2,500 home loan products.
Calculate your savings from making extra mortgage repayments
Long story short
Extra loan repayments can save you the big bucks
Chucking in an extra $500 a month could save you hundreds of thousands in total interest throughout your mortgage and cut years off your loan.
Pay off your home faster, one dollar at a time
Even small, regular extra payments knock down your loan faster and save you heaps in interest.
Less interest means more in your pocket
Most of your early repayments go toward interest. Extra payments slash this and build equity quicker.
Our flexible calculator can help you plan smarter
See how extra repayments can speed up your loan payoff and save you cash.
Calculate your savings from making extra mortgage repayments
What are extra repayments on a mortgage?
As the name suggests, these are additional payments on a home loan that’s over the amount of your agreed or minimum monthly repayments.
Extra repayments can reduce the total interest payable and cut your loan by years!
For a typical Aussie with a 30-year mortgage, the first five to eight years’ worth of repayments mostly go towards interest – not the principal. The more additional repayments you chuck in early on, the less interest you’ll cop, and the faster you’ll cross the finish line and finally pay off your home.
Helpful tip
Paying extra can be as simple as putting in a little more money into your mortgage each month or fortnight – or whenever you get a windfall. Whether it’s $50 on payday, your end-of-year work bonus, or your entire tax refund, every extra dollar chips away at your loan principal and knocks down the interest you’ll end up paying overall.
Don’t have big chunks of cash lying around? That’s fine. Sometimes it’s the smaller, regular extra amounts that pack the biggest punch. And should interest rates take a nasty jump, you’ll have a handy buffer to ride them out.
Sam Hyman
General Manager – National Sales, Aussie
How do I use the extra mortgage repayments calculator?
It’s easy to use our extra repayments calculator. Just enter the loan details listed below:
- the amount you have borrowed or plan to borrow
- your loan type
- the loan term – or how many years you’re planning to pay
- the interest rate you’re currently paying
- repayment frequency – monthly, fortnightly, or weekly
- the repayment type – whether principal and interest or interest only
- the frequency and value of any regular extra repayments you have in mind
- extra repayment amount – the value of any lump sum payment and when you plan to contribute them.
To see how much interest you can save and how many years you can shave off your entire life of the loan with extra repayments, click the ‘Extra repayments’ button and enter:
- the frequency and value of any regular extra repayments you have in mind
- the value of any lump sums and when you plan to contribute them.
The extra repayments calculator shows the amount of interest saved and how many years you can shave off your loan, as well as the principal and total interest outstanding on the loan throughout its life.
You can also see it all in a graph by choosing the ‘Repayment chart’ tab. Watch the seismic shift every time you increase the extra home loan repayments and lump sum amounts.
You can work backwards, too! Choose when you want to pay off your home, and our extra home loan repayment calculator will give you an idea of the repayments needed to meet your target.
Go on, have a fiddle with different repayment figures. See for yourself what adding an extra hundred bucks can do to the life expectancy of your loan (and how it lets your wallet breathe a little easier in the long term).
How much can I save with extra mortgage repayments?
The interest on your mortgage is calculated on a daily basis. So, even paying an extra $500 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 you pay, the more you’ll save in interest, and the sooner you could own your home.
iSelect’s extra repayment calculator can give you a good indication of just how much you can save. You’ll see the difference that even a little extra each month can save you. It’s not just interesting, it’s inspiring.
| Description | Without extra repayments | With $500 extra repayments per month |
| Principal loan amount | $500,000 | |
| Interest rate | 5.89% p.a. | |
| Standard monthly repayment | $2,963 | |
| Total monthly repayment | $2,963 | $3,463 |
| Total interest payable | $566,495 | $372,426 |
| Time taken to repay loan | 30 years | 21 years |
Source: Indicative numbers from iSelect lump sum calculator, May 2025
As you can see, adding $500 to your monthly repayments can save you $194,069 throughout the life of the loan, and help you own your property outright nine years early!
Is it worth making extra mortgage repayments?
Usually, yes – but as always, let’s break it down.
Pros
- Slash the lifetime of your loan
- Save big on the total interest payable
- Build equity faster
- Have a buffer if interest rates rise
Cons
- Fixed-rate loans may charge fees for extra payments
- Fixed-rate loans might limit extra payments
- Extra repayments might mean reduced liquidity – meaning less shopping or gadget splurges!
- If you want to be able to access your extra repayments in an emergency, you’ll need to look into a redraw facility or offset account (and pay associated costs, e.g. activation fees). Always worth checking the features and details in your home loan account!
While extra mortgage repayments can bring a lot of benefits like bringing your loan balance down over time, it’s also a good idea to weigh the pros and cons to ensure you can afford them. It all boils down to personal circumstances – what might work for some may not work for others!
Frequently asked questions
Can you make extra mortgage repayments with a variable rate?
Yes, most variable-rate loans in Australia allow you to pay extra whenever you like, often without penalty.
Can you make extra mortgage repayments with a fixed rate?
Fixed-rate loans often have a limit on extra repayments during the fixed-rate period. Exceeding these limits can incur fees or break costs.
Do extra mortgage repayments go directly to the principal?
Yep, generally your lender applies extra repayments straight to the principal (the core amount you owe, not counting interest and other charges). That’s how it reduces your interest, since interest is calculated on whatever principal is left day by day.
Some home loans also offer redraw facilities or offset accounts, which can affect how extra repayments reduce interest and whether your can access those extra funds later.
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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 Lendi Group Distribution Pty Ltd (Australian Credit Licence 246786). iSelect provides a referral to Lendi Group Pty Ltd, a Credit Representative of Lendi Group Distribution Pty Ltd (Australian Credit License 246786). iSelect Mortgages Pty Ltd receives a commission from Lendi Group Distribution Pty Ltd, the licensee for each new customer account created and for each home loan submitted through this service.