Use this home loan extra repayment calculator to see how an affordable extra payment could reduce your interest and repayment time. Enter your current loan balance, rate, remaining term and the amount you could pay on top of the minimum.
On a hypothetical $600,000 loan at 6.25% over 30 years, an extra $200 a month saves about $114,174 in interest and 3 years, 11 months. The result assumes the rate stays unchanged and you keep making the extra payments. Check your loan's repayment limits before setting up a transfer.
How to use the extra repayment calculator
Enter the amount you currently owe, rather than the original loan amount. Add your actual interest rate and the years remaining. Then choose an extra repayment amount and monthly, fortnightly or weekly frequency.
The result compares standard repayments with your extra-payment scenario. You can adjust the settings beside the result to see how a different amount affects the estimate.
The calculation uses principal and interest repayments. Weekly and fortnightly extras are converted to a monthly equivalent, so it is an estimate rather than a simulation of your lender's daily interest and payment dates. It keeps the rate constant and excludes fees, fixed-rate restrictions and offset balances.
The calculator does not have a one-off lump-sum or delayed-start input. Those examples below are separate illustrations. For a broader budget check, use our mortgage calculator and guide to affordable repayments.
Does increasing my home loan repayment make much difference?
The amount and timing both matter. You do not need to commit to a large extra payment to make progress, but a small payment will not remove the same number of years from every loan.
These examples use a $600,000 balance, 6.25% p.a., 30 years remaining and monthly principal and interest repayments. Extras start with the first payment. The unrounded standard repayment is used in the calculation; displayed repayments are rounded to whole dollars. No rate changes, fees or withdrawals are included.
| Extra each month | Total monthly payment | Time to repay | Interest saved |
|---|---|---|---|
| $0 | $3,694 | 30 years | $0 |
| $50 | $3,744 | 28 years, 11 months | $32,984 |
| $100 | $3,794 | 27 years, 10 months | $62,688 |
| $200 | $3,894 | 26 years, 1 month | $114,174 |
| $500 | $4,194 | 22 years | $226,456 |
At $50 extra a month, this example saves 13 months. Use your own balance and rate to find a figure that means something for your budget.
How does compounding interest work?
Compound interest means that interest added to a balance can itself attract interest. With regular principal and interest mortgage repayments, the main benefit of paying extra is that you owe less sooner. Each payment covers interest and reduces the debt; future interest is calculated on the smaller balance.
An extra payment reduces that balance sooner. The interest saving depends on your rate and how long that money would otherwise remain owing.
Lenders commonly calculate mortgage interest daily and charge it periodically. This tool uses monthly calculations, so your statements may differ slightly. Moneysmart's mortgage calculator also explains the assumptions behind repayment estimates.
Why you should make extra repayments on your home loan
Paying more principal can reduce interest, shorten the term and increase your home equity, if the property value is unchanged. It can also give you room in the budget later, but money paid into the loan is not automatically available whenever you want it back.
Keep a cash reserve for bills and emergencies. If you plan to buy another home soon, compare reducing the mortgage with retaining cash for a deposit and buying costs. The best amount is one you can keep paying without relying on expensive short-term debt for ordinary expenses.
When am I not able to make additional repayments?
Variable-rate loans often allow extra repayments, but check the product's fees and access rules. Fixed loans can limit extra payments or trigger a break cost. There is no single $10,000 or $20,000 annual allowance across all banks.
CommBank, ANZ and NAB measure their fixed-loan allowances differently. Check both the amount and the period it covers. Published terms checked on 12 September 2026:
| Lender | Published fixed-loan allowance | Condition to check |
|---|---|---|
| CommBank | Up to $10,000 extra for each year of the fixed loan | Excludes Interest in Advance terms; check your remaining allowance and any early repayment adjustment |
| ANZ | The lesser of 5% of the loan amount at the start of the fixed period or $5,000 each year | Check how much of this allowance you have already used |
| NAB | Up to $20,000 extra during the fixed-rate period | The allowance is for the fixed period, not a fresh $20,000 every year |
Read our CommBank, ANZ and NAB guides alongside your own loan contract. Product and contract differences matter. Obtain a current payout or break-cost quote before making a payment above the allowance or refinancing a fixed loan.
A split loan may let you direct extras to its variable portion. That is a feature to compare, not a reason to restructure automatically. Our fixed-rate guide and break-cost explanation cover the trade-offs.
What counts as extra repayments on a home loan?
Anything paid above the required repayment is an extra repayment. A separate regular transfer, a larger scheduled payment or a permitted lump sum can all reduce principal.
Check whether your bank changes the scheduled debit when its minimum repayment changes. If the rate falls and you want to keep paying the previous amount, confirm that instruction with the lender. If rates rise, make sure your transfer still covers the required amount before calling the difference an extra payment.
The power of one-off lump sum repayments
A lump sum can reduce interest even if you cannot increase your regular budget. Keep enough cash for known costs and check fixed-rate or redraw conditions before transferring it.
In a separate hypothetical calculation, pay $10,000 immediately into the $600,000 loan above and keep the original monthly payment of about $3,694. At an unchanged 6.25%, it saves about $52,253 in interest and 16 months. The loan starts the calculation at $590,000, but repayments stay at the original level.
The saving changes with the payment date, term and rate, and with whether you keep paying the original monthly amount.
Is it possible to use my offset account to make higher payments?
A 100% offset reduces the balance used to calculate interest while your money stays in a separate linked account. Extra repayments reduce the loan balance itself. They can have a similar interest effect on a suitable loan, but the ownership and access arrangements differ.
For a $150,000 loan and $20,000 in a fully linked 100% offset, interest is generally calculated on $130,000. You still owe $150,000 before subsequent repayments. A partial offset works differently, and product fees or a higher rate can affect the value of the feature.
Redraw is access to eligible extra repayments under the lender's rules. Availability can change; it is not identical to withdrawing from an offset. If the property may become a rental, ask your tax adviser about the consequences before redrawing for private spending.
Our offset account guide and home loan features guide explain the choice. This calculator does not model an offset balance.
Will extra repayments lower my monthly bill?
Not necessarily. If your required repayment stays unchanged, a lower balance usually means you repay the debt sooner. If you need a lower required payment, ask the lender whether it can recalculate or otherwise change your repayment under the loan terms.
Ask how the change would affect redraw, the term, total interest and any fees. Reducing the regular payment gives you more cash now but generally saves less interest than keeping it at the higher level.
If repayments are becoming unaffordable, contact the lender early about assistance. Do not assume a large extra payment followed by a recalculation is the only way to manage a short-term difficulty.
Increasing your repayment frequency to pay off your loan quicker
Paying half a monthly amount every fortnight produces 26 half-payments a year, equal to 13 monthly payments. For a $2,000 monthly amount, that is $26,000 a year rather than $24,000.
However, some lenders calculate the fortnightly amount as the monthly repayment multiplied by 12 and divided by 26. That keeps the annual amount similar. Switching frequency alone does not guarantee an extra month's repayment or a fixed number of years saved.
Fortnightly means every 2 weeks, not twice a month. This tool converts frequency using 52 weeks or 26 fortnights a year; enter the additional amount you actually plan to pay for the chosen period.
When is the best time to start making additional repayments?
Earlier payments have longer to reduce interest, if your loan allows them and your budget can support them. It can still help to start later.
The table uses the same $600,000, 6.25%, 30 year loan, with $200 extra each month after the stated delay and the original repayment maintained.
| Start extra payments | Interest saved | Time saved |
|---|---|---|
| Immediately | $114,174 | 3 years, 11 months |
| After 1 year | $104,702 | 3 years, 8 months |
| After 5 years | $72,079 | 2 years, 9 months |
| After 10 years | $41,837 | 1 year, 11 months |
These are separate delayed-start calculations, not a feature of the tool above. No fees or rate changes are included.
Does my interest rate affect my extra repayments?
Yes. The same balance costs more interest at a higher rate. A lower rate can help, especially if you keep paying the previous amount, but compare switching costs and the remaining term before refinancing.
A new 30 year term may reduce the monthly bill while increasing the time you pay interest. Our refinancing guide helps you compare loans over the same remaining period. The 6.25% used here is an example rate, not a current offer or a cash-rate forecast.
Home loan extra repayment calculator FAQs
How many years can extra repayments take off my home loan?
It depends on the balance, rate, term and extra amount. In the example above, $200 extra each month saves 47 months. It is not a standard result for every $200 payment.
How much extra should I repay?
Choose an amount left after regular expenses, other commitments and a suitable reserve. Test it in the calculator, then check the lender's rules. You can start small and review it when your budget changes.
Can I make extra repayments on a fixed home loan?
Often there is an allowance, but its amount and measurement period vary. Check your contract and what you have already paid. Obtain a quote before exceeding the allowance; the calculator does not deduct break costs.
Is it better to make weekly or monthly extra payments?
Compare the annual extra amount first. $50 weekly is $2,600 a year; $50 monthly is $600. This tool averages weekly and fortnightly amounts into months, so it cannot measure every daily-interest timing difference.
Are offset and redraw the same?
No. An offset is a separate linked account; redraw is access to eligible extra loan payments under the lender's conditions. Both can reduce interest in suitable circumstances, but access, fees and tax consequences can differ.
Can I withdraw extra repayments later?
Only if your loan provides redraw and the money remains available under its terms. Check limits and restrictions before treating it as your emergency fund.
Does this calculator include lump sums or interest-only loans?
It models recurring extra repayments on a principal and interest loan. It does not have a one-off lump-sum, offset or interest-only period input. Those situations need a separate calculation.
Should I pay extra while saving for my first home?
If you have no mortgage yet, use the deposit calculator and 5% Deposit Scheme guide to plan your purchase. This tool is for reducing an existing loan; government scheme eligibility does not guarantee affordable repayments.
Check what extra repayments could save you
Bring your current balance, rate, remaining term and the extra amount your budget allows. We can compare extra repayments, offset features and refinancing costs without assuming you need a new loan.
Request a free assessment or call 1300 088 065.
References
Information checked 12 September 2026. Examples assume an unchanged 6.25% rate, not a lender offer.
- Moneysmart: paying off your mortgage faster
- Moneysmart: mortgage calculator
- Moneysmart: offset accounts
- Moneysmart: switching home loans
- CommBank: fixed-rate repayment limits
- ANZ: fixed-rate repayment tolerance
- NAB: fixed-rate early repayments
- CommBank: managing repayments
- Australian Government: home-buying schemes
- ATO: rental expenses and interest