Calculator
Loan repayment calculator, with the assumptions shown.
Use this calculator to estimate monthly repayments on a home or investment loan, for principal and interest or interest-only repayments. Results are illustrative only. They use the loan amount, interest rate and term you enter, and do not include fees, rate changes or lender assessment.
Credit is subject to lender criteria, assessment and approval. Fees, charges and eligibility criteria may apply.
Estimated monthly repayment
- Number of repayments
- 360
- Total interest
- $695,029
- Total repaid
- $1,295,029
Illustrative only. Excludes fees, rate changes and lender assessment.
How it works
How does the calculator work?
Enter a loan amount, an interest rate and a loan term, then choose principal and interest or interest-only repayments.
For principal and interest, the calculator uses the standard formula for a loan repaid in equal monthly instalments: repayment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate and n is the number of monthly repayments. For interest-only, the repayment is the loan amount multiplied by the monthly rate, and the balance does not reduce.
Worked example
What would a $600,000 loan cost each month?
Take a $600,000 loan at an example rate of 6.00% a year over 30 years. The monthly rate is 6.00% ÷ 12 = 0.50%, and there are 30 × 12 = 360 monthly repayments.
Principal and interest repayments work out to about $3,597.30 a month. Over 360 repayments that is about $1,295,029 in total, of which about $695,029 is interest.
Interest-only repayments on the same loan would be $600,000 × 0.50% = $3,000.00 a month, but the balance would still be $600,000 at the end of the interest-only period.
The 6.00% rate is an example for illustration only. It is not a rate offered by any lender.
Assumptions
What does the calculator not include?
The estimate assumes the rate stays the same for the whole term. It does not include:
- lender fees, government charges or lenders mortgage insurance
- changes to interest rates during the loan term
- offset account balances or extra repayments
- your borrowing capacity, or whether a lender will approve the loan
Any repayment or savings estimate is illustrative only and based on the information you provide. Actual outcomes depend on your loan amount, rate, fees, loan term, repayment type, lender criteria and approval. Refinancing may not be suitable for everyone.
Questions
Common questions
Is the result what I will actually pay?
No. It is an estimate based on the figures you enter. Your actual repayments depend on the lender, your rate, fees, loan features and approval. Danny can work through the real numbers with you.
Does the calculator show how much I can borrow?
No. It shows repayments for a loan amount you choose. How much you can borrow depends on your income, expenses, existing debts and each lender's assessment.
Why are interest-only repayments lower?
Because you only pay the interest. The loan balance does not reduce during the interest-only period, so you may pay more interest over the life of the loan.
General information only, not personal advice.
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