Mortgage Extra Repayments Calculator

Find out how much interest and time you save by making extra repayments on your home loan. Even a small extra payment each month can make a significant difference.

$
$50k$3m
%
0.5%15%
years
1 yr30 yrs
$
$0$5,000/mo

Your Savings

Interest saved

$98,420

Standard repayment $3,378/mo
New repayment $3,878/mo
Original payoff Apr 2050
New payoff date Jun 2045
Time saved 4 yrs 10 mo
Total interest (standard) $513,400
Total interest (with extra) $414,980

Why extra repayments save so much

Every extra dollar you pay reduces your principal immediately. Because interest is calculated daily on your outstanding balance, a lower balance means less interest accrues — compounding the benefit over time.

On a $500,000 loan at 6.2%, an extra $500/month saves over $98,000 in interest and nearly 5 years off your loan. The earlier in your loan term you make extra repayments, the more you save.

Best strategies for extra repayments

  • ✓Offset account — keeps cash accessible while reducing daily interest. Functionally identical to repaying but you can redraw.
  • ✓Round up repayments — if your repayment is $2,847, pay $3,000. Small extra amounts add up dramatically.
  • ✓Use windfalls — tax refunds, bonuses, and inheritances as lump sum repayments accelerate payoff significantly.
  • ✓Switch to fortnightly — 26 fortnightly payments = 13 monthly payments per year, effectively one free repayment.

Frequently Asked Questions

Can I make extra repayments on a fixed home loan? +
Most fixed rate loans cap extra repayments at $10,000–$20,000 per year. Exceeding this can trigger break costs. Variable rate loans almost always allow unlimited extra repayments without penalty. Check your loan terms — if you're planning significant extra repayments, a variable or split loan may be more suitable.
What is the difference between extra repayments and an offset account? +
Extra repayments permanently reduce your loan balance (though many variable loans let you redraw). An offset account holds your savings separately — your balance reduces the interest-bearing principal each day, but the cash stays accessible. Both achieve similar interest savings; offset accounts offer more flexibility if you might need the funds.
Should I invest spare cash or pay off my mortgage faster? +
This depends on your interest rate vs. expected investment return. If your mortgage rate is 6.2% and you expect investments to return 7–9%, investing may yield more — but with higher risk. Paying down your mortgage is a guaranteed, risk-free "return" equal to your interest rate. Many Australians split the difference, using an offset account for liquidity while also investing.
How much interest will I save with $200/month extra? +
On a $500,000 loan at 6.2% with 25 years remaining, an extra $200/month saves approximately $44,000 in interest and cuts around 2 years off the loan. The exact savings vary with your balance and rate — use this calculator to find your personal figure.

Disclaimer: This calculator provides estimates for general information purposes only and does not constitute financial advice. Results assume a constant interest rate, monthly compounding, and that extra repayments are made consistently. Actual savings may vary based on your loan type, lender policies, and any redraw or offset arrangements. Always consult a licensed mortgage broker or financial adviser before making changes to your loan structure.