Loan Repayment Calculator

Australian home loans calculate interest daily on the outstanding balance. This calculator uses the standard amortisation formula: each repayment covers the interest accrued plus a portion of principal, with the principal share growing over time. The result is the regular repayment that fully repays the loan within the term. Fortnightly repayments use 26 payments per year (not 24), which is why fortnightly often shaves years off the loan.

Interest rate has the largest impact — a 0.5% change on a $600,000 loan over 25 years is roughly $45,000 in total interest. Loan term matters next: extending from 25 to 30 years lowers monthly repayments by around 10-12% but adds tens of thousands in interest. Switching from monthly to true fortnightly (half the monthly amount paid every fortnight) is one of the easiest wins, saving roughly $50,000 and 3-4 years on a $500,000 loan at 6.5%.

Stress-test your repayments at 1-2% above the current rate to see how a rate rise would affect your budget. Add an extra $50-$100 per fortnight to see how much interest you can save — even modest extras compound dramatically over a 25-30 year term. If the regular repayment looks tight, refinancing to a sharper rate often saves more than other budget cuts. A broker can compare 40+ lenders to find the best fit for your goals.