Useful next calculations
When to use this calculator
- Before comparing mortgage products, brokers or repayment types.
- When you want to test how a different deposit, rate or term changes the payment.
- When you need a quick estimate before using a formal illustration or agreement in principle.
- When you are stress-testing your budget against a higher rate.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Loan Amount (A$) | A$200,000 |
| Property Value (A$) | A$250,000 |
| Interest Rate (%) | 5.5% |
| Term (Years) | 25 years |
For those figures the calculator returns:
- Monthly payment: A$1,228.17
- Total interest: A$168,452.50
- LTV: 80.00%
How to read your results
Monthly Payment
Estimated monthly mortgage repayment under the rate, term and balance you entered. Compare it with a lender illustration before you apply.
Total Interest
Additional amount paid above the original principal during the term, using the rate you entered. Fees and early-repayment charges are not included unless you added them.
LTV
Loan-to-value is the mortgage as a percentage of the property value. Crossing common LTV bands can change product eligibility and pricing.
Method & assumptions
This calculator works on a standard capital and interest repayment basis, spreading your loan across the chosen term so that each monthly payment reduces the outstanding balance while also covering interest. The calculation uses compound interest applied monthly, which is how most mortgage lenders price their products. The result shows an illustrative monthly payment based on the rate and term you enter — it does not account for mortgage fees added to the loan, payment holidays, or rate changes at the end of a fixed period. Real-world repayments may differ slightly depending on how your lender calculates daily interest. Always request a full Key Facts Illustration (KFI) or European Standardised Information Sheet (ESIS) from any lender before committing.
Common mistakes
- Mixing up loan amount and property value, which distorts affordability and LTV.
- Using a headline rate but forgetting fees, insurance or repayment type.
- Testing only one term length instead of comparing payment and total cost together.
- Treating the result as a lender decision rather than a planning estimate.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
How to read this Australian home-loan estimate
Guidance reviewed 2 September 2026This calculator runs a standard principal-and-interest amortisation: a fixed loan amount, a constant interest rate, and equal repayments over the term you choose. That is the right first model for an Australian owner-occupier or investor home loan, but it is deliberately simple compared with a lender quote.
The two numbers most Australian borrowers are judged on are the deposit (expressed as a loan-to-value ratio, LVR) and the interest rate. Most lenders charge Lenders Mortgage Insurance (LMI) when the deposit is under 20% — an LVR above 80% — so it is worth checking which side of that line your figures fall on.
Worked example (illustrative figures only)
- Inputs:
- Loan A$700,000 · property value A$875,000 (LVR 80%) · rate 6.00% · 30-year term
- Estimate:
- Repayment ≈ A$4,197 per month (principal and interest)
- What it means:
- The same loan at 6.50% would be roughly A$4,424 per month — about A$227 more. Small rate moves matter a lot over a 30-year term, which is why it pays to test a higher-rate downside case before you commit.
- What is excluded:
- LMI, establishment and ongoing fees, offset or redraw effects, and any rate changes over the term are not included.
Example values only. This is not financial advice.
Assumptions
- Principal-and-interest repayments, amortised evenly over the term.
- The interest rate stays constant for the whole term — real Australian home loans are mostly variable or fixed-then-variable.
- Repayments are monthly; many Australian lenders also offer fortnightly cycles, which are not modelled.
- LVR is derived from the loan amount and property value you enter.
Not included
- Lenders Mortgage Insurance (typically charged when LVR is above 80%) is not added to the result.
- Lender fees — application, valuation, annual package or exit fees — are not modelled; compare loans using each lender’s comparison rate.
- Offset accounts and redraw facilities (which reduce effective interest for Australian borrowers who use them) are not modelled.
- Government charges such as transfer duty and registration fees are not included — use the Stamp Duty Calculator (Australia) alongside this tool.
- This page does not assess borrowing eligibility. Lender assessment, serviceability buffers and credit criteria are specific to each lender.
Reading the result
- Owner-occupier and investor home loans are usually priced differently — check that any rate you enter matches the loan purpose.
- If your LVR is above 80%, treat the estimate as understated until you have priced LMI with a lender.
- Test a rate roughly one percentage point above today’s as a downside case before committing to a budget.