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Calculate your extra and lump sum payment

A home loan is the biggest expense most of us will ever have. While the home itself will cost several hundred thousand dollars at least, the interest component of that loan could easily add another couple of hundred thousand dollars. Home loans can commonly last 25-30 years, which is a long time to be paying something off. The longer the loan is for, the more interest you’ll have to pay.

Any extra repayment you make - be it lump sum repayments or recurring repayments above the minimum - can save you money by reducing the principal on the loan, aka the borrowed amount left to repay. Interest is charged on this principal amount, so the smaller the principal, the less there is to charge interest on.

Our extra and lump sum payment calculator helps you see how much you could potentially save by making extra repayments or a one-off lump sum payment.

Your estimated results

By paying extra, you could reduce your loan term by 30 years 0 month and save $0 in interest.

5.10 %
30 years
0 year
0 year
30 years 0 month

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discount variable p.a.***
comp rate p.a.*
Option to add an offset sub-account for 0.10%^
No monthly or ongoing fees
Unlimited redraws

How to use our Extra & Lump Sum Payment calculator

Our Extra Repayments Calculator will ask you to input a few important pieces of information for it to perform its number crunch.

This information will include:

  • The loan amount and the loan term (the length of the loan)

  • Your loan’s interest rate

  • Your repayment frequency

  • How much your extra payment will be, and if it will be once off or monthly

  • Where in the loan schedule you’ll make these extra repayments

borrower comparing refinancing options borrower comparing refinancing options

How does a lump sum payment affect my mortgage?

Placing a lump sum payment on your mortgage won’t lower your repayments. It will help you to save on interest and lower the total amount outstanding on your mortgage. Since the amount of interest is based on the principal of the loan, the lower this amount, the lower the interest rate. By making a lump sum or extra payments you could save tens of thousands of dollars.

How will extra repayments affect my mortgage?

Like the lump sum payments, making extra repayments on your mortgage could cut the interest charged on your loan and reduce the time it takes to pay off your mortgage.

Interest is charged on the principal amount and in the early years of a loan most of your minimum repayment goes towards paying that interest. Only a certain portion of the repayment goes towards the principal amount.

Our Extra Repayment Calculator outlines the impact of making regular extra payments to your loan.

Extra And Lump Sum Payment FAQs

By paying your mortgage repayments weekly or fortnightly, the extra money in redraw or offset will bring down how much interest you pay every month or accrue every day, and throughout the life of your loan.

Making extra home loan repayments can prove useful. Depending on whether your home loan lender offers this feature, you could be able to redraw on the extra repayments you’ve made over time, which can be handy if you need access to funds at short notice.

The best solution of these two would depend on your personal situation. Whether you have some extra income that can be put towards your loan ongoing, or if you have received a bonus, tax return, or an inheritance.

We recommend you check if your mortgage allows you to make additional payments monthly or in a lump sum towards your principal. Regardless of the amount of funds applied towards the principal, paying extra installments towards your loan can make a large difference in the amount of interest paid over the life of the loan.

Additionally, the term of your mortgage can be significantly reduced by making extra payments or a lump sum. By making one extra payment per year you could shorten a 30-year mortgage by up to five years!

Here at loans.com.au , most of our variable products allow for extra repayments with no penalties.

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We’re efficient. For the last 10 years, we’ve won awards each year for our innovation, low rate home loans and car loans and extras like our offset sub-account from experts like RateCity, Canstar and WeMoney to name a few.

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Whatever stage of the home loan journey you're at, we can help


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At loans.com.au, we make it easy for you to start saving thousands on your home loan repayments, as soon as possible. You don't even have to contact your old lender - we can do the hard work for you.


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The friendly lending specialists at loans.com.au are here to help you as much as you need when buying your first home. We can walk you through all your options to find the right loan for you, and we have a number of handy guides and videos available to help with the process.


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When you're building or doing major renovations, you have a lot on your mind. We can help take the stress out the finance with low rates and an easy online application so you can focus on the build.

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