Extra Mortgage Repayments Calculator
See how much time and interest you save by paying more than the minimum each month.
The Impact of Extra Repayments
Extra mortgage repayments are one of the most effective debt reduction strategies available to Australians. Because your minimum repayment is calculated to pay off the loan in exactly the original term, any additional amount goes entirely toward reducing the principal — which immediately reduces future interest charges.
The Snowball Effect
As the principal reduces faster, less interest accrues each month, so more of each future repayment reduces principal. This snowball effect means the savings compound over time — making early extra repayments particularly valuable.
How Much Can You Save?
- Extra $100/month on $500K at 6.5% over 30 years: saves ~$48,000 and 2.5 years
- Extra $500/month: saves ~$155,000 and 8 years
- Extra $1,000/month: saves ~$225,000 and 13 years
Even small amounts make a meaningful difference when sustained over a long loan term.
Check Your Loan Type
Variable rate loans generally allow unlimited extra repayments. Fixed rate loans often cap extra repayments at $10,000–$20,000 per year — exceeding this can trigger break costs. Always check your loan terms before making extra repayments on a fixed rate.