What will the repayments be?
Principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments. The chart shows how the balance falls and how much of each year goes to interest, which is the part of a loan most people never see.
No rates are quoted on this site. Where a rate is needed, you enter the one you have been offered. Nothing here is recorded or sent to us.
At a glance
- You enter
- Loan amount, your rate, term, frequency, any interest-only period and extra repayments
- You see
- The repayment, total interest, the payoff date with extras and a year-by-year balance chart
- Assumed
- Rate held constant, repayments in arrears, no fees or offset balance
The method, in the order a lender uses it.
Every figure above comes from these steps and nothing else. If a lender's number differs from ours, one of the items in the second list is usually the reason.
Repayment
Standard annuity formula: the amount that repays the balance over the term at the periodic rate (annual rate divided by 12, 26 or 52).
Interest-only
During the interest-only years the repayment is interest on the full balance. Afterwards the balance is repaid over the years that remain, so the principal and interest repayment is higher than a loan with no interest-only period.
Extra repayments
Added to every principal and interest repayment and applied to the balance, which shortens the loan. The saving shown is the interest avoided.
Chart
Balance at the end of each year, with the interest and principal paid in that year.
What this tool does not include
- Rate changes over the term, which are certain over 30 years.
- Offset balances and redraw, which reduce interest without changing the scheduled repayment.
- Fees, lenders mortgage insurance capitalised into the loan, and package costs.
- Fortnightly repayments that are half the monthly amount (which pays a little more each year) versus a true fortnightly annuity, which this tool uses.
Asked before the calculator, and after it.
Does paying fortnightly save interest?
Only if the fortnightly amount is half the monthly repayment, because you then make the equivalent of 13 monthly repayments a year. A true fortnightly repayment calculated over the same term saves very little. Ask your lender which method they use. Principal and interest, in the glossary.
Why is the principal and interest repayment higher after an interest-only period?
Because the same balance has to be repaid over fewer years. Five years interest-only on a 30 year loan means the principal is cleared over 25.
How much difference do extra repayments make?
Early extra repayments do the most work because they remove principal that would otherwise attract interest for decades. The tool shows the years saved and the interest avoided for the amount you enter.
Why does the site not show a rate?
A rate without its comparison rate, conditions and structure tells you almost nothing, and rates change faster than a website does. Any rate we show you is yours, in writing, with everything attached.
Same discipline, different question.
Each shows its method and its assumptions. None quotes a rate. All six tools.
How much could I borrow?
A lender does not start from the price of the house.
Open Refinance savingsIs switching worth it?
A lower rate is not automatically a saving.
Open Stamp dutyWhat will the government charge?
Transfer duty is the largest cost of buying after the price itself and it differs by state, by purpose and by whether it is your first home.
Open Fixed rate endingWhat happens when my fixed rate ends?
When a fixed term ends the loan reverts to the lender's variable rate, and the repayment moves on the day.
Open Development feasibilityDoes the project stack up?
Before a lender, a valuer or a quantity surveyor looks at a project, a developer needs a first answer to one question: what margin is left after every cost, including the cost of the money.
OpenLonger reads from the archive.
When the number raises a question, ask it.
A finance review starts with a conversation and a written position from Dayan Kasturiratna, who provides the credit assistance on every file. No credit check to start.
Calculators on this page provide estimates for general information only, from the figures you enter and the assumptions shown. They do not take account of your objectives, financial situation or needs, are not credit assistance, an offer or an approval, and should not be relied on without checking with your lender, conveyancer or adviser. Opulent Finance does not provide tax, legal or accounting advice.
