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Extra Repayment Calculator

Calculator

Use our Extra Repayment Calculator to see how making additional repayments on your home loan can save you time and money. This tool allows you to estimate how much you could save in interest by making extra contributions to your loan, and how it could shorten the overall loan term. Whether you’re looking to reduce your debt quicker or minimise your interest costs, this calculator provides valuable insights to help you make informed decisions.

How to Use the Extra Repayment Calculator

Step 1

Enter Your Loan Details

Loan Amount: Input the total amount you’ve borrowed.
Interest Rate: Add the current interest rate on your loan.
Loan Term: Choose the length of your loan, usually in years.
Repayment Frequency: Select how often you make repayments (monthly, fortnightly, or weekly).

Step 2

Enter Your Extra Contribution Per Payment

Extra Amount: Add the extra amount you plan to contribute with each regular payment.
Starts After: Choose when you plan to start making extra repayments (e.g., after 5 years).

Step 3

View Your Results

See how much time you’ll save on your loan term.
Discover how much interest you’ll save over the life of the loan.
Compare the difference between your current repayments and your increased repayments with the extra contribution.

Explanations of Key Terms

Loan Amount: The total amount borrowed for your mortgage.
Interest Rate: The percentage of the loan charged as interest by the lender.
Loan Term: The period over which you will repay your loan.
Repayment Frequency: How often you make repayments (monthly, fortnightly, or weekly).
Extra Amount: The additional amount you contribute to your regular loan repayments.
Time Saved: The number of months or years you’ll cut off your loan term by making extra repayments.
Interest Saved: The total amount of interest you’ll save by making extra contributions over the life of the loan.

FAQ

How do extra repayments help me save money?

By making extra repayments, you reduce the loan balance quicker, which lowers the amount of interest charged over This means you can pay off your loan faster and save on interest.

When is the best time to start making extra repayments?

The earlier you start making extra repayments, the more interest you save. However, even starting a few years into your loan can still make a significant difference.

How much should I contribute as extra repayments?

Even small amounts can have a big impact over Use the calculator to see how adding just $100 more per month can shorten your loan term and reduce your interest costs.

Can I make extra repayments on any loan type?

Most lenders allow extra repayments, especially on variable-rate loans. However, some fixed-rate loans may have Check with your lender for specific terms.

What if my financial situation changes, and I can’t continue making extra payments?

You can adjust or stop making extra payments at any time. The calculator provides flexibility, allowing you to experiment with different repayment amounts.

Example Scenarios

Example 1

Let’s say you have a $400,000 loan at 6% interest over 30 years. By making an extra repayment of $100 per month starting in year 5, you could save:

Time saved: 2 years and 2 months
Interest saved: $35,058.39

With these extra payments, your increased monthly repayment would be $2,498.20 instead of $2,398.20, but the long-term savings make it worth it.

Disclaimer

Please note: The results provided by this calculator are estimates and should be used for informational purposes only. Always consult a financial advisor before making significant changes to your loan repayment strategy.

Ready to start saving?

Contact us today for personalised advice on how to make extra repayments and reduce your mortgage faster. Our financial experts are here to help you achieve your goals.