Extra Repayment Calculator

Find out exactly how much you can save in interest by making extra repayments towards your home loan.

Extra repayment calculator

Most of us wonder if making additional repayment into your home loan is beneficial for you? Apart from the obvious which is being debt-free sooner, paying just a little extra each month can lead to considerable savings in the form of interest.

The calculator will allow you to see the impact of making the extra repayments to your home loan.

It is important that you make sure your lender allows you to make additional repayments because some home loans attract prepayment penalties i.e. fixed rate home loans.

FAQs about this Calculator

  • How do extra repayments to your home loan work?

    Any extra repayments you make is the amount above the minimum loan repayment set by your lender. This extra repayment goes toward the principal of the loan rather than the interest.

  • How to use the extra home loan payments calculator?

    Using the extra repayments calculator requires you to input details about your existing home loan. Here’s the information you’ll need:

    • Loan amount
      This refers to the outstanding loan balance that you need pay off.

    • Interest rate
      This is the interest rate that you are currently paying which can be fixed or variable.

    • Loan Terms
      This is referring to the amount of time you have to repay the loan with usual loan term ranging from 25 to 30 years

    • Repayment frequency
      Referring if your payments are weekly, fortnightly, or monthly.

    • Extra amount
      This is how much you wish to pay in addition to your regular repayments on your home loan and living expenses.

    • Starts after date
      This indicates when you want to start making your first extra payments.

    While you think making one or two additional payments doesn’t amount to much, if you keep doing this on an ongoing basis, the benefits will compound and become more noticeable. This is because interest is calculated daily so the more additional repayment you make, the less interest you pay in the long term. What this also mean is that the sooner you start making extra payments, the more savings you have in the long term.

  • What are your options?

    There are three options for making extra repayments which can be effective in paying off your home loan sooner.

    Switching the frequency of your repayment
    By switching your repayment to higher repayment frequency like a fortnightly, you are making more repayments in a year in comparison to monthly because you end up paying the equivalent of 13 monthly instalments and not 12. That’s an extra month’s repayment you may not even notice.

    Making a lump sum payment
    Another strategy is to make one-off lump sum payments when you have some extra money, such as your tax return, a work bonus or an inheritance.

    Pay a little extra each month
    If you can afford to, paying a little more on an ongoing basis can make a big difference over the term of the loan. This calculator will show you the benefit of making regular additional payments to your loan. 

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