Extra Repayments Calculator

Why extra repayments make such a big difference

Every dollar you pay above your minimum repayment goes directly to reducing your loan principal. Because interest is calculated on your outstanding balance, reducing the principal early creates a compounding effect, less principal means less interest charged each month, which means more of your regular payment goes to principal, and so on.

Even small amounts add up fast

For example, adding $200/month to a $500K loan at 6.14% over 30 years could save over $100,000 in interest and reduce the term by nearly 5 years. Your actual results will depend on your loan balance, rate and repayment frequency. The earlier you start, the more powerful the effect.

Offset accounts vs extra repayments

If your loan has a 100% offset account, you get the same interest-saving effect without locking money away. The balance in your offset reduces the principal your interest is calculated on, and you can still access the funds. For investment properties, an offset is usually preferable for tax reasons.

Things to check first

Fixed-rate loans typically cap extra repayments (often $10,000–$20,000 per year). If you want flexibility to pay more, make sure your loan allows it before refinancing. We can help you find loans with no extra repayment limits.