Extra Repayments Calculator Australia — Pay Off Your Loan Faster

On a $600,000 loan at 6.2% over 30 years, an extra $500/month saves approximately $155,000 in interest and pays off the loan 8 years early. Even $100/month extra saves over $35,000. Use the calculator above for your loan.

At 6%+ home loan rates, paying down the mortgage is a guaranteed after-tax return. Share investments may return more over time but with volatility. Many Australians do both — extra repayments plus regular investing.

Extra repayments reduce your principal directly. Since interest is calculated daily on the outstanding balance, every dollar of principal reduction saves interest every single day for the rest of the loan — creating a compounding benefit.