Know Your Repayments Before You Commit
Taking out a loan is a big decision, and knowing what your repayments will look like can help you plan ahead. Our Loan Repayment Calculator gives you a quick estimate of your monthly repayments based on your loan amount, interest rate, term, and repayment frequency.
Use the calculator above to see how much your repayments could be.
What Affects Your Loan Repayments?
Lenders consider multiple factors when determining your loan repayments. Here’s what impacts how much you’ll pay:
Loan Amount
The more you borrow, the higher your repayments will be. A larger loan means spreading the cost over time.
Interest Rate
A lower rate means lower repayments. Your rate depends on factors like loan type, credit history, and lender policies.
Loan Term
A longer loan term means smaller repayments, but more interest paid over time. A shorter term increases repayments but saves on interest.
Repayment Frequency
Paying weekly or fortnightly instead of monthly can help reduce the interest you pay over the life of the loan.
Extra Repayments
Making additional payments can reduce your loan balance faster, cutting down interest costs and shortening the loan term.
Ways to Reduce Your Loan Repayments
Secure a Lower Interest Rate
Even a small rate difference can save you thousands over the life of the loan. Shopping around or refinancing can help.
Extend Your Loan Term
Stretching out your loan over a longer period reduces repayments, but you’ll pay more in interest in the long run.
Consider an Offset Account or Redraw Facility
These features help reduce interest paid by offsetting your loan balance with savings.
Make Extra Payments When Possible
If your loan allows it, paying a little extra when you can helps cut down the overall cost and term.
Loan Repayment Calculator - FAQs
What is the difference between principal & interest and interest-only repayments?
Principal & interest repayments gradually reduce your loan balance while covering interest, helping you pay off the loan over time. Interest-only repayments, on the other hand, only cover the interest for a set period, which keeps repayments lower initially but results in higher long-term costs.
Can I pay off my loan faster?
Yes! Making extra repayments, using an offset account, or switching to fortnightly payments can help you pay off your loan sooner and reduce interest costs. Some loans allow extra repayments without penalties—check with your lender.
Is it better to choose a fixed or variable interest rate?
A fixed rate keeps your repayments the same for a set period, offering stability and protection against rate hikes. A variable rate, however, fluctuates with market changes, which can mean lower repayments when rates drop but higher repayments if rates increase. A split loan (part fixed, part variable) offers a balance of both.
What fees should I consider when calculating repayments?
Aside from the interest rate, factor in additional costs like application fees, annual fees, lender’s mortgage insurance (LMI) if applicable, and potential early exit fees. These can affect your total loan cost.
Can I refinance my loan to lower my repayments?
Yes, refinancing to a lower rate, switching to a longer-term loan, or consolidating debts can help reduce repayments. A broker can assess whether refinancing is a good option for you based on your financial situation.
What if I’m struggling to meet my loan repayments?
If you’re facing financial hardship, reach out to your lender as soon as possible. They may offer temporary repayment pauses, restructuring options, or other support measures to help you manage your loan.
Can I reduce my repayments after taking a loan?
Yes. Refinancing, negotiating a lower rate, or extending your loan term are ways to reduce your repayments. A mortgage broker can help explore your options.
What happens if interest rates change?
If you’re on a variable-rate loan, your repayments may go up or down based on rate changes. Fixed-rate loans keep repayments the same for a set period.
What's Next?
Knowing your estimated repayments is just one part of the process. If you’re serious about taking the next step, we’re here to help.
Want expert guidance?
Write to us at [email protected] or call us on 08 6285 8120.
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