Australia Mortgage Calculator
Australian mortgage calculator: monthly, fortnightly and weekly repayments, interest-only period, extra repayments, offset account and the APRA buffer.
What it does
This calculator works out Australian home loan repayments monthly, fortnightly or weekly, with an optional interest-only period. It shows how an offset account and extra repayments cut the interest and the term, what paying half the monthly repayment every fortnight saves, and the repayment lenders test with the 3-point APRA serviceability buffer.
How to use it
- Enter the loan amount, the interest rate and the loan term.
- Choose the repayment frequency and, if you have them, an interest-only period, extra repayments and an offset balance.
- Read the repayment, the total interest, when the loan is paid off and how much you save.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How does an offset account save interest?
Interest is charged on the loan balance minus the offset balance. With $50,000 in offset against a $500,000 loan, you pay interest on $450,000, but the repayment does not change, so the extra goes to the principal. Unlike a term deposit, the saving is not taxed.
Is it better to pay fortnightly?
A fortnightly repayment worked out for 26 payments a year costs about the same as paying monthly. The saving comes from paying half the monthly repayment every fortnight: 26 halves are 13 monthly repayments a year, one more than paying monthly, which takes years off a 30-year loan.
What is LMI?
Lenders mortgage insurance protects the lender, not you, when you borrow more than 80% of the property value. It is a one-off premium set by the insurer, usually added to the loan. Some first home buyers avoid it through the Australian Government's 5% Deposit Scheme.
What is the serviceability buffer?
APRA expects banks to check that you could still afford the repayments if the rate were 3 percentage points higher than the one you are offered. That is why the amount you can borrow is lower than your current repayment alone suggests.
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