Extra repayments calculator

Pay your home loan off faster. Save mortgage interest. These are just some of the perks of making extra repayments for your home loan. Find out how much time and money you can save with our handy extra repayments calculator.

What are extra home loan repayments?

Most, if not all, variable home loans let you make extra repayments against your mortgage principal – usually for free. These extra repayments count towards the initial loan amount you borrowed, thus eliminating your debt faster. 

This also reduces your interest payments over time, since the principal used to calculate your interest gets smaller, faster. 

How does an extra home loan repayments calculator work?

Mozo’s extra repayments calculator estimates how much time and money you could save on your home loan by putting more cash into your mortgage repayments

To use the calculator, you’ll need to know:

You can also include an introductory interest rate if your home loan has one.

Enter these details into the boxes in the calculator. Now it’s time to experiment. You can make extra repayments either by adding extra money to your monthly payments or as a lump sum. Plug these numbers into the calculator to see how they could affect your long-term mortgage costs. 

How to make extra repayments on a home loan

If your home loan lets you make extra repayments, it’s usually just a matter of increasing the size of your mortgage repayments. For example, instead of transferring $2,000 a month into your mortgage account, you transfer $2,050. 

You could also transfer a lump sum payment the same way, i.e. putting your tax return or a work bonus toward your mortgage.

What happens if I pay an extra $100 a month on my home loan principal?

How much money extra repayments save you depends on your initial loan amount, loan term, and interest rate. But let’s take a look at some home loan statistics to make an estimate. 

The average mortgage size in Australia is $610,000, and the average variable home loan interest rate in Mozo’s database is 6.85% p.a. (for owner-occupiers with LVRs < 80%) as of January 2024. Let’s say you have a loan term of 25 years.

According to Mozo’s extra repayment calculator, paying an extra $100 monthly on this home loan for the first ten years could save $34,484 in total interest and discharge the mortgage 10 months early. Not too bad!

Home loan comparisons on Mozo - last updated 19 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2024
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

    Compare
    Details
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    Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
  • placeholder
    Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

    Compare
    Details
  • placeholder
    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • placeholder
    Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details
  • placeholder
    Flex Home Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    6.24% p.a. variable
    6.48% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

    Compare
    Details
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Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Extra repayments home loan FAQs

What is a home loan redraw facility?

A home loan redraw facility is a special account attached to your home loan that lets you dip back into extra repayments you’ve already made. 

Pulling funds from a redraw can sometimes come with fees. It will also increase your loan size since you’ve pulled the funds from your mortgage, thus increasing your interest payments.

Can you make extra repayments on a fixed home loan?

Extra repayments are a standard feature for variable home loans, not fixed ones. It’s unlikely you make extra repayments during your fixed home loan term

Are extra repayments worth it?

Adding a little more money to your mortgage repayments in the short term might be annoying, but the time and interest you save could be worthwhile. Essentially, extra repayments can get you debt-free faster and cheaper. 

Our extra repayments calculator makes it easy to see how this works.