Pay off sooner
Extra repayments calculator
See how paying a little more into your home loan may reduce interest, shorten the loan term, and shape the next conversation with a broker.
Extra repayment estimate
See the interest and time you may save.
Enter your current loan details and add a regular or one-off extra repayment to compare the estimated payoff path.
Short explanation
Understanding extra repayments
Extra repayments can be powerful, but the best structure depends on access to cash, lender rules, rate type, and whether your loan is still competitive.
How extra repayments work
A standard principal and interest repayment covers the interest charged for the period and then pays down part of the balance. When you pay extra into the loan and the lender applies it to principal, the balance can fall faster.
The effect compounds over time. Extra repayments made early in the loan often create a larger interest saving because the balance is reduced for more of the remaining term.
Weekly vs monthly extra repayments
Weekly and fortnightly extra repayments can help some borrowers build a habit around their pay cycle. Monthly extra repayments may be easier for borrowers who budget around one larger payment.
The most useful frequency is usually the one you can sustain without relying on credit cards, draining emergency savings, or missing other bills.
Redraw and offset considerations
Extra repayments and offset accounts can both reduce interest, but they work differently. Extra repayments reduce the loan balance directly. Offset savings can reduce interest while keeping funds in a linked account, subject to the product terms.
If access to cash matters, check redraw availability, processing times, minimum redraw amounts, fees, and whether your lender can change redraw access.
Want the full explanation? Read: Why an annual home loan review can be worth booking
Estimate basisHow this extra repayments estimate works
This page models extra repayments as a planning estimate and uses official Australian calculator guidance for the public-source trail.
- The calculator compares a scheduled repayment path with a path that includes regular or one-off extra repayments.
- It assumes the entered interest rate stays unchanged and extra repayments reduce the loan balance.
- It does not model lender fees, redraw rules, fixed-rate limits, offset balances, or future rate changes.
Frequently asked questions
Extra repayments calculator FAQ
Are extra repayments worth it?
Extra repayments can be worthwhile when they reduce your loan balance and cut interest without leaving you short on cash. The right answer depends on your rate, loan structure, emergency savings, other debts, and whether your lender has limits or fees.
Do extra repayments reduce monthly repayments?
Extra repayments usually reduce the loan balance and may shorten the loan term. They do not always reduce the required repayment straight away unless your lender recalculates repayments or you formally change the loan.
Is offset better than extra repayments?
An offset account can reduce interest while keeping savings accessible. Extra repayments may reduce the balance directly, but redraw access and rules vary by lender. A broker can help compare the structure for your goals.
Can I redraw extra repayments?
Some loans allow redraw, but access can depend on the lender, loan type, repayment history, and product rules. Check the specific loan terms before treating extra repayments as available savings.
Should I pay extra or refinance?
If your rate, fees, or loan features are no longer competitive, refinancing may be worth comparing before directing more cash into the current loan. The refinance savings calculator and a broker review can help frame the decision.
When you're ready to review your loan
A calculator gives you a starting number.
Turn the estimate into a practical loan check.
Treat the saving as a scenario. A broker still needs to check repayment frequency, redraw rules, fixed-rate limits, fees and whether the interest-saving assumptions fit the loan.
- Check your structureConfirm whether your loan allows extra repayments, redraw, offset, or fixed-rate limits before committing cash.
- Compare featuresAn offset account, split loan, refinance, or repayment change may suit different goals and cash-flow needs.
- Speak with a brokerA broker can test the numbers against lender policy and explain the trade-offs before you make a move.
This calculator provides a general estimate only. It is not approval, not credit advice, and not a loan recommendation. Actual outcomes depend on lender policy, borrower circumstances, rate changes, fees, documents, product rules, and verification.