Calculate your monthly home loan repayments by entering your loan amount, interest rate, and
loan term. This calculator helps you understand how much you'll need to repay each month.
Results
Loan Amount: $0
Interest Rate: 0%
Loan Term: 0 years
Loan Type: Principal & Interest
Monthly Repayment:$0
Understanding Home Loan Repayments
Your monthly home loan repayment is calculated based on several factors: the loan amount,
the interest rate, the loan term, and the type of loan you choose. There are two main types
of home loan repayments:
Principal & Interest (P&I): Your repayment includes both the principal amount and
interest. This is the most common type of home loan and ensures your loan is paid off by
the end of the term.
Interest Only (IO): Your repayment only covers the interest on the loan. The principal
amount remains unchanged during the interest-only period, which is typically limited to
5-10 years.
How are Repayments Calculated?
The calculator uses different formulas depending on your chosen loan type:
For Principal & Interest loans, we use the standard amortization formula that calculates
equal monthly payments to fully repay the loan over the specified term. Each payment
includes both principal and interest components, with the interest portion decreasing and
the principal portion increasing over time.
For Interest Only loans, the monthly payment is simply the interest charged on the loan
amount. The principal amount remains unchanged during the interest-only period.
Factors Affecting Your Repayments
Several factors can influence your monthly repayments:
Interest rate changes (if you have a variable rate loan)
Additional repayments you make
Loan features like offset accounts or redraw facilities
Changes to your loan term
The type of loan (Principal & Interest vs Interest Only)