Australia Mortgage Calculator

The Australia edition of the mortgage calculator. It works out the monthly principal and interest repayment on a home loan over terms up to 30 years, together with the total interest and total repaid. Enter the loan amount — purchase price less your deposit — the annual rate and the term. Council rates, building and contents insurance and any strata levies are ownership costs that sit outside this figure.

The maths is repayment = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), with r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of monthly repayments — 360 over 30 years. Australian lenders normally calculate interest daily and charge it monthly, whereas this tool applies a month of interest to the balance at a time, so expect small differences against a real statement.

Worked example at a hypothetical 6.05%: $600,000 over 30 years gives $3,616.61 a month, $1,301,980.81 repaid in total and $701,980.81 of that as interest — more than the amount borrowed, which is what three decades of interest does. The same loan over 25 years costs $3,884.17 a month, only $267.56 more, but total interest falls to $565,250.27: a saving of $136,730.54 for one extra step on the repayment.

What the arithmetic misses is the part Australian borrowers use most. Because interest is worked out on the daily balance, an offset account reduces the balance interest is charged on without repaying the loan, and money paid ahead into redraw does the same while staying available if you need it. Both cut the interest total below what this calculator shows, and neither is modelled. Most Australian loans are also variable rate, sometimes with a fixed period at the start that is far shorter than the term, so today’s repayment is a snapshot rather than a 30-year commitment — which is exactly why running the numbers a couple of percentage points higher is worth the ten seconds it takes.

Also worth separating from the repayment: your employer’s superannuation is paid on top of your salary rather than out of it, so it is not part of the income you are servicing this loan from, and GST at 10% is already inside advertised prices where it applies. Application, valuation and ongoing account fees are excluded from the totals here, as are interest-only periods. These are estimates for planning — confirm the figures with your lender or a qualified adviser before you commit.

Other regions: United States, United Kingdom, Canada.