Home Loans Principal and Interest Calculator

How does the principal and interest calculator work?

It’s easy! Just follow these simple steps: 

1. Enter the total amount of your Home Loan (the amount you agreed to borrow). 
2. Enter the term of your Home Loan (the total number of years over which you agreed to pay back your Home Loan). 
3. Enter the interest rate you’ll be charged on your Home Loan (check this on your loan statement). 
4. Select the frequency of your Home Loan repayments (weekly, fortnightly, or monthly). 
5. Select whether you’ll be paying principal and interest or interest only. 
6. If you’re making extra repayments, click the ‘extra repayments’ tab and enter the amount and frequency of those repayments. 

How to read the principal and interest calculator results

The principal and interest calculator gives you a breakdown of how much of your repayment goes towards the interest and how much towards the principal each month. It also shows a running total of how much you’ve paid towards each, as well as the principal you have remaining at the end of every month.  

You might want to try putting in different extra repayment amounts. You’ll find out how the different amounts might reduce your interest charges and help you pay off your Home Loan sooner.  

Are you curious what would happen if you diverted funds from, say, your streaming services that you don’t use too often? How often are you watching episodes of Love Island UK anyway? Try it and you might find that putting those funds into your Home Loan will have surprising long-term results.

Helpful tip

A calculator is a great start, but how you use it matters. Play around with different interest rates to see how your repayments might change. Shorten your loan term to save on interest (know the trade-off is higher monthly repayments). Also, don’t forget to factor in fees; calculators won’t always show them upfront.   

Sam Hyman

General Manager – National Sales, Aussie

Can I make extra repayments on my Home Loan?

Not every borrower can make extra Home Loan repayments under the terms of their loan. While a Variable Rate Home Loan allows you to make unlimited additional repayments, Fixed Rate Home Loans can be more restricted.¹Lendi – Fixed, variable or split rate home loans: which is right for you?  Most Fixed Rate Home Loans won’t let you make uncapped extra repayments and could charge break fees if you do.²Aussie – Refinancing a fixed rate mortgage? Beware of break fees 

Before you try to make extra repayments, it’s worth contacting your lender or reading your Home Loan terms to make sure you won’t be penalised.  

If you think you might want to make extra mortgage repayments on your Home Loan, consider opting for – or refinancing to – a Home Loan with a variable interest rate. If you’d prefer a fixed rate, speak to a mortgage broker about finding a Fixed Rate Home Loan that allows for extra repayments.

Compare Home Loans with iSelect and Aussie

We’ve partnered with Aussie to help our customers compare Home Loans from a range of lenders. It doesn’t take much effort and it could save you a lot. Click here to compare Home Loans with Aussie today!