Mortgage Repayment Calculator
Calculate your Australian home loan repayments. Compare principal & interest vs interest-only payments.
How Mortgage Repayments Work in Australia
Australian home loans are typically repaid over 25–30 years. Your repayment amount depends on three factors: the loan amount, the interest rate, and the loan term. Most borrowers choose principal and interest (P&I) repayments, where each payment covers both the interest owing and reduces the loan balance.
Principal & Interest vs Interest Only
Principal & Interest (P&I): Each repayment covers the interest charged that period plus a portion of the original loan amount. Early in the loan, most of your repayment goes to interest. Over time, a larger proportion goes to reducing the principal. This is the standard and most cost-effective repayment method.
Interest Only (IO): You only pay the interest charged — the loan balance doesn't reduce. This results in lower repayments short-term but costs significantly more over the life of the loan. Interest-only periods are typically limited to 5 years for owner-occupiers and 10 years for investors.
Fortnightly vs Monthly Repayments
Switching from monthly to fortnightly repayments (paying half the monthly amount every two weeks) is one of the simplest ways to save on your mortgage. Because there are 26 fortnights in a year, you effectively make 13 monthly payments instead of 12 — paying off your loan years earlier and saving thousands in interest.
Current Interest Rates
As of 2025, Australian variable home loan rates for owner-occupiers typically range from 6.0% to 7.0%, depending on the lender, your LVR (loan-to-value ratio), and whether the loan is for an owner-occupied or investment property. Fixed rates vary by term length and market conditions.