Extra Mortgage Repayments Calculator
Find out how much interest you could save and how many years you could cut from your home loan by making extra repayments. Free calculator from Greystone Finance.
Making extra repayments on your home loan is the simplest, most reliable way to save money and become mortgage-free sooner. Because interest is charged on your outstanding balance, every additional dollar you pay above the minimum reduces both the balance and all the future interest that balance would have generated, a compounding effect that grows the earlier and more consistently you do it.
The impact is often larger than people expect. On a typical 30-year loan, modest but regular extra repayments can cut several years off the term and save tens of thousands of dollars in interest. Paying fortnightly instead of monthly is a related trick: because there are 26 fortnights in a year, paying half your monthly amount every fortnight sneaks in the equivalent of one extra monthly repayment annually, almost without noticing.
Lump sums matter too. Directing a tax refund, work bonus or inheritance straight onto the principal takes a bite out of the balance at exactly the point where interest is highest, in the early years of the loan. A one-off extra payment early on saves far more interest than the same amount paid near the end of the term.
Before you commit, check two things about your product. First, whether there are any restrictions or fees on extra repayments. Fixed-rate loans in particular often cap how much extra you can pay each year. Second, whether you can redraw those extra payments if your circumstances change, so you keep a safety net. Many borrowers prefer to make extra repayments into an offset account instead, gaining the same interest saving while keeping the funds fully accessible.
Our calculator lets you add a regular extra amount or a lump sum and see how many years and how much interest you could save. The figures are indicative and assume your rate holds steady. To compare the extra-repayment strategy against an offset account, or to check your loan allows it, use our full calculator and speak with a Greystone broker who can map the fastest path to owning your home outright.
Run your own numbers
Repayments, stamp duty, LMI and borrowing power, all in one place, with a Greystone Finance broker on hand to confirm the real figures.
Results are indicative only and not a quote, pre-approval or financial advice. Final figures depend on your circumstances and the lender's assessment.