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What is a home loan calculator?

Also called a "mortgage calculator", a home loan calculator can help you to:

  • Find a low rate: Work out the lowest interest rates you can afford, and how much you could save compared to a higher rate loan.
  • Find out how much you can borrow: Use your income and saved deposit to work out how much you can afford to borrow and comfortably repay.
  • Find out how much you’ll pay in interest: Break down the total cost of your loan, and see how much total interest you’ll pay when you buy a property.

Keep in mind that a mortgage calculator does not take every aspect of your personal situation into account, and is not a substitute for professional financial advice.

When should I use a home loan calculator?

Home loan calculators can be useful at almost any stage of your home loan journey.

  • Before you start looking for properties, you can estimate how much a bank may offer to lend you, giving you a better idea of your real estate budget.
  • When you’re seeking home loan preapproval, you can determine the maximum repayments you could potentially afford, and how this could change if interest rates were to rise or fall.
  • When making offers on properties, you can determine how different purchase prices and property values can affect the LVR and LMI on your home loan.
  • Once you have a home loan, you can work out how refinancing to a different interest rate could affect your repayments and potentially put you in a better financial position.

What type of calculator should I use when I’m looking to buy?

  • Home loan repayment calculator: By using this calculator to estimate your mortgage repayments with different variables, you can work out which loans match your needs and financial situation. 
  • Borrowing power calculator: This calculator can help you determine how much money a lender may offer to lend you when you’re seeking pre-approval, so you can have a maximum budget in mind when making an offer on a new home or investment property.
  • Stamp duty calculator:Estimating the stamp duty you may have to pay on a property can help you calculate your upfront costs when buying a property.
  • LMI calculator: If your deposit is on the smaller side, this calculator can help estimate how much Lender’s Mortgage Insurance you might have to pay for when you apply for a home loan.
  • Mortgage stress calculator: Comparing the potential cost of mortgage repayments with your household income can help you work out if a change in interest rates or a similar financial shock could put your budget under stress.
  • Refinance calculator:Working out what interest repayments look like from one loan, compared to your current loan, can help you work out if now is the right time to consider switching mortgages.

Get a property's value and work out what you can afford

Using a mortgage calculator is just one part of the journey. Find out how much a property is worth and you'll know how much you need to borrow before using a calculator.

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Why should I use a mortgage calculator?

Mortgage calculators, such as those found on RateCity, can help you quickly and easily compare the costs and benefits of home loans in Australia from a variety of different mortgage lenders – simply enter the details of each offer to estimate its overall value. Knowing the monthly (or weekly or fortnightly) repayments on a home loan can also help you estimate the total cost over the full loan term.

Useful for anyone considering buying a home, a home loan calculator can offer a way to understand your future financial outlook, whether you're a first home buyer, you've bought before, or you’re buying an investment property.

Will using a bank or lender's calculator offer the best results?

Using a bank’s home loan calculator, such as those from the Commonwealth Bank, ANZ, NAB, Westpac, or another major lender, may help you estimate the cost of repayments for that bank’s own mortgage products. This may be helpful if you’re looking for a home loan from a specific bank or lender, whether you're looking mortgages of all sizes, even up to repayments on mortgages as big as one million dollars or higher. 

However, a bank’s mortgage calculators may not always let you adjust the figures in your calculation (e.g. the interest rate, loan term etc.) to something other than what’s offered by their own loan products, preventing you from being able to easily see how each factor may affect the loan. Plus, there may not be an easy way to compare the calculated cost of the bank’s mortgage offers to the value of home loans from other mortgage lenders.

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What a home loan comparison calculator offers

A mortgage calculator from a home loan comparison site may allow you to enter your own interest rate, loan term and more, giving you more control over your calculations, and a greater understanding of which home loan features and benefits may affect the final cost and value.

You can also quickly compare the results from the calculator on a comparison site with other home loan offers from other banks and lenders. This can help you find alternative home financing options, perhaps even with a mortgage lender you hadn’t previously considered.

Can mortgage calculators be used for investment loans?

There is no real difference between a home loan calculator and an investment property loan calculator. Most mortgage calculators can be used to calculate repayments on investment loans just as easily as for owner occupier home loans. Simply enter the details of the investment loan you’re looking at to calculate the repayments or estimate your borrowing power.

Keep in mind that investment loans often have higher interest rates and stricter eligibility criteria than home loans for owner occupiers. This could affect the cost of your repayments, especially if you opt for interest only repayments on your investment loan for a limited time. Also, your borrowing power may be slightly lower, as some lenders consider investment mortgages riskier than home loans for owner occupiers.

How do I use a home loan repayment calculator?

To find the estimated repayments on a home loan, simply enter a few details into our home loan calculator. Using this information, we can calculate:

  • Your estimated repayments (weekly, monthly, or fortnightly)
  • The total interest payable
  • The total amount payable
  • Your repayment schedule

Our calculator can also show you how much you could potentially save by adjusting your loan term or other figures, and help you compare home loans that may suit the requirements you’ve entered. 

How to use a home loan repayment calculator

  1. The loan amount you’d like to borrow: Essentially, how much you need to purchase your property.
  2. The interest rate you’d like to pay: You can find interest rates from a variety of lenders here, using those numbers to simulate how much you'll need.
  3. Your preferred repayment type: Principal and Interest or Interest Only.
  4. Your borrower type: Are you borrowing to be an Owner Occupier, or are you borrowing as an Investor?
  5. The loan term you’d like to take to pay off your debt: Home loan terms can be as short as one year and go all the way to 30 years.

How do I view my mortgage calculator repayment schedule?

If you click to view your repayment schedule in your mortgage calculator results, you’ll be shown a graph illustrating how your mortgage can be paid off over time. You can see at a glance how much of each home loan repayment will be made up of your loan’s principal, how much will be made up of interest charges, and how these percentages will change over time as you pay off your loan.

You can also click to view your repayment schedule as a table, showing a full breakdown of the dollar values that make up each repayment. This can be handy if you like to precisely manage your household budget, or want to get a better idea of exactly where your money will be going.

Keep in mind that your repayment schedule is an estimate based on the values entered into the mortgage calculator. It does not take into account:

  • increases or decreases to variable interest rates
  • any fees you may be charged
  • the use of loan features such as an offset account or redraw facility

What's the next step after using a mortgage calculator?

After the mortgage repayment calculator has told you how much you could expect to pay for your home loan, the next step is to compare the range of home loans that are available on the market, and to consider their interest rates, fees, features and other benefits, such as offset and redraw, and whether or not the loan product offers a fixed rate or variable rate. These loan products can vary wildly, and there may also be other eligibility criteria or lending criteria for you to fulfil when you’re home buying.

Keep in mind that as well as interest, there may be upfront and ongoing fees and other charges to consider. To get a better idea of a home loan’s overall cost, look at its comparison rate. A mortgage’s interest and standard fees and charges are included when calculating its comparison rate, so you can tell at a glance which loans could end up costing more or less. Just remember that home loan comparison rates are calculated using pre-set assumptions for consistency – different terms will likely apply to your loan, so the comparison rate should provide a guideline only.

Will a mortgage broker make it easier than doing it myself?

Once you find a loan that may match your needs, you can contact the lender directly to make an application. If you’re having trouble working out which mortgage offer may be right for you, a mortgage broker may be able to provide personal financial advice

Mortgage brokers are home loan experts who can help you with every step of searching and applying for a mortgage. A broker can look at your finances and personal goals, and calculate what repayments may best suit your budget, including the effect of making extra repayments or using home loan features such as offset or redraw. 

Brokers can help you choose from home loan products that may suit your needs, including special mortgage deals that are exclusive to brokers. A mortgage broker can even help you manage the home loan application paperwork, saving you time and hassle.

Contact a mortgage broker

Fact Check Verification

The information on this page was fact checked by Chris Brown, a broker in New South Wales specialising in home loans, car financing, debt consolidation, short-term finance, non-conforming finance, business finance, and asset financing. For more information on how brokers like this can assist you, look for a broker near you

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Frequently asked questions

How does a mortgage calculator work?

A mortgage calculator is an extremely helpful tool when planning to take out a home loan and working out the costs. Although each mortgage calculator you come across may be slightly different, most will help you estimate how much your repayments will be. The calculator will often also show you the difference in repayments if you repay weekly, monthly or fortnightly. 

To calculate these figures, you’ll be asked to enter a few details. These include the amount you plan to borrow, whether you’re an owner-occupier or an investor, the proposed interest rate and the home loan term. It will also often show you the total interest you’ll be charged and the total amount you’ll repay over the life of the loan.  

Understanding how the mortgage calculator works, helps you to use it to see how different loan amounts, interest rates and terms affect your repayments. This can then help you choose a home loan that you can repay comfortably and save on interest costs. The mortgage calculator lets you compare the benefits and costs of home loans from different lenders to help you make a more informed choice. Use a mortgage calculator to help identify which home loan is most suitable for your requirements and financial situation.

How can I calculate interest on my home loan?

You can calculate the total interest you will pay over the life of your loan by using a mortgage calculator. The calculator will estimate your repayments based on the amount you want to borrow, the interest rate, the length of your loan, whether you are an owner-occupier or an investor and whether you plan to pay ‘principal and interest’ or ‘interest-only’.

If you are buying a new home, the calculator will also help you work out how much you’ll need to pay in stamp duty and other related costs.

How much money can I borrow for a home loan?

Tip: You can use RateCity how much can I borrow calculator to get a quick answer.

How much money you can borrow for a home loan will depend on a number of factors including your employment status, your income (and your partner’s income if you are taking out a joint loan), the size of your deposit, your living expenses and any other debt you might hold, including credit cards. 

A good place to start is to work out how much you can afford to make in monthly repayments, factoring in a buffer of at least 2 – 3 per cent to allow for interest rate rises along the way. You’ll also need to factor in additional costs that come with purchasing a property such as stamp duty, legal fees, building inspections, strata or council fees.

If you are planning on renting the property, you can factor in the expected rental income to help offset the mortgage, but again it’s prudent to add a significant buffer to allow for rental management fees, maintenance costs and short periods of no rental income when tenants move out. It’s also wise to factor in changes in personal circumstances – the typical home loan lasts for around 30 years and a lot can happen between now and then.

How do you calculate how much you could save with a lower rate?

To work out how much you could save, we run the home loan details you’ve provided through our database, and search for similar home loan options that we think would be suitable for you.

We then calculate the costs of these loan options over 15 years (to keep our calculations consistent) and compare them to the cost calculations for your current home loan.