Learn more about extra repayments
How to use our Extra and Lump Sum Repayment Calculator
Our Extra and Lump Sum Repayment Calculator is designed to show you how additional payments could influence your home loan over time. To get started, simply enter a few key details.
You will be asked to provide:
- Loan amount and loan term
The total amount borrowed and the length of time you plan to repay the loan.
- Interest rate
The rate currently applied to your home loan.
- Repayment frequency
How often you make your regular loan repayments, such as weekly, fortnightly or monthly.
- Extra repayment details
The amount you plan to pay in addition to your regular repayment and whether this will be a one‑off lump sum or an ongoing extra monthly amount. Once these details are entered, the calculator will show the potential impact of your additional payments on the interest charged and the remaining loan term.
FAQs
Making a lump sum payment reduces the outstanding balance on your home loan. Although this does not usually change your minimum repayment amount, it can lower the interest charged because interest is calculated on the remaining principal. Reducing the principal earlier can help decrease the total interest paid over the life of the loan and may contribute to paying off your mortgage sooner.
Extra repayments work in a similar way to a lump sum. By paying more than your required minimum repayment, you reduce your loan balance sooner. Since interest is calculated on the principal, lowering this amount can reduce the interest charged and may shorten the overall loan term. In the early stages of a mortgage, a large portion of each repayment goes toward interest, so contributing extra can make a noticeable long‑term difference.
Making repayments weekly or fortnightly can help reduce the amount of interest charged on your home loan because your loan balance may decrease more often. This can lower the interest that accrues over time and may reduce the total interest paid over the life of your loan.
If your lender allows it, you may be able to access any extra repayments through a redraw facility. This can be useful if you need funds unexpectedly, although availability depends on your specific loan features.
Whether extra repayments or a lump sum is more suitable will depend on your individual loan features and personal circumstances. It is important to check whether your home loan allows additional repayments either regularly or as a one‑off amount.
Making extra payments toward your principal, regardless of the amount, can help reduce the interest charged over the life of your loan and may shorten your loan term. If you are unsure which option your loan supports, your lender can explain the features available and any conditions that may apply.
Many lenders allow extra repayments on certain loan types, particularly variable rate loans, without additional fees. At loans.com.au, our Variable Bold Home Loan allows extra repayments with no penalties. Conditions can vary between lenders and loan products, so it is always best to check the specific terms of your home loan.
Complete your home loan application in minutes
Applying online is easy. So is chatting with one of our friendly home lending specialists. The application is quick and simple. Get started online today, or give us a call if you prefer.
Choose a home loan that's right for you
You could lower your repayments in one easy switch.
Ready to buy your home? Getting pre-approved gives you peace of mind.
Flexible loan options to help you grow your investment portfolio.
Build your home with flexible progress payments and a competitive rate.
Get auction-ready with our competitive loans.
Let us take the complexity out of owning your first home.
Why Aussies choose us?
Apply anytime, and
from anywhere
Fast tracked pre-approval in minutes
Smarter lending to get you moving sooner
Online convenience,
local support
Sam
Kathryn
Lending Specialist
Real people, based in Brisbane, Australia
Our experienced home lending specialists are here to help. Let's chat about your home loan options today.