Your repayments and their real cost, in seconds.
Based on a 6.2% average rate, refreshed regularly.
Indicative only — not a loan offer. Credit assistance by 1st Street Financial (Credit Representative 490057, under Australian Credit Licence 389328).
Every repayment is split two ways: some pays down the money you borrowed, and some is interest — the lender’s charge for lending it. Early on the balance is large, so most of what you pay is interest. As the balance shrinks, more of each repayment goes to the loan itself.
Over a 30-year term that interest adds up — on many loans you repay close to twice what you borrowed. Two things change it most: the rate and the term. A better rate lowers both your monthly repayment and the total. A shorter term costs more each month but a lot less overall.
This calculator uses a 6.2% average rate and a straight principal-and-interest loan. It doesn’t include fees or offset accounts — a broker factors those in when they compare real products for you.
It's a standard principal-and-interest loan: your loan amount, spread over the term, at the interest rate. Early on most of each repayment is interest; later, more of it chips away at the balance. Put your numbers in above and you'll see the monthly figure straight away.
Because it's charged every month for up to 30 years, and early on your balance is still large. On a lot of loans you end up paying nearly as much in interest as you borrowed. A shorter term or a lower rate makes a big dent — and so does paying a little extra each month.
Principal is the money you actually borrowed. Interest is what the lender charges you to borrow it. Your repayment covers both — and the faster you bring the principal down, the less interest you pay overall.
No. This is just principal and interest. Some loans also have application, ongoing or offset-account fees — a broker will factor those in when they compare real products for you.
A longer term lowers the monthly amount but costs more interest overall. A lower rate lowers both. The quickest win is usually a better rate — a 1st Street broker (Credit Representative 490057) can check 40+ lenders to find one.
A better rate can shave years and tens of thousands off the total. Fifteen minutes with a broker is usually enough to know.
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