australia • AUD

Mortgage Payment Calculator (Australia)

Calculate Australian mortgage repayments, includes offset account savings, stress test rates and interest calculations. Free home loan calculator for Australian property buyers.

Last revised 25 July 2026

By Team GlobalCalqulate · About our editorial standards

Property & Loan

Property price

Deposit

Loan amount

Loan Terms

Interest rate (%)

Loan term (years)

Repayment type

Interest-only period (years)

Offset & Extra Repayments

Offset account balance

Extra monthly repayment

Stress Test

Stress test interest rate (%)

Leave blank to use your rate plus 3 percentage points, the minimum buffer APRA expects lenders to apply.

Financial Disclaimer: This result is an educational estimate produced by applying published rates and thresholds to the figures you entered. It is not a tax determination: your actual liability depends on circumstances this calculator does not collect. Confirm your position with the relevant tax authority or a qualified accountant before acting on it. Full disclaimer.

Sources & methodology

Formula:: Scheduled repayment (principal and interest)
Reference:: ASIC Moneysmart
Rates for:: 2026/27
Figures verified:: September 2026 — checked against the primary source above
Content last updated:: July 2026
Scheduled re-verification:: June 2027

Calculation type: Rule-based calculation. Uses 2026 rates and thresholds. Figures are taken from ASIC Moneysmart and Australian Prudential Regulation Authority — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked 24 September 2026

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

M = P x r x (1 + r)^n / ((1 + r)^n - 1)

The level repayment that clears the loan exactly over its term. P is the amount borrowed, r the monthly rate (annual rate divided by 12) and n the number of monthly repayments.

Interest-only period

M_io = P x r,   principal unchanged until the period ends

During an interest-only period you pay only the interest, so the balance does not fall. The principal-and-interest repayment afterwards is recalculated over the shorter remaining term, which is why it steps up.

Offset account

interest charged on (balance - offset balance)

Money in a linked offset account is subtracted from the loan balance before interest is calculated each day. The repayment does not change, so more of it goes to principal and the loan ends sooner.

Serviceability buffer (stress test)

assessment rate = loan rate + buffer   (APRA APG 223: at least 3.00 percentage points)

APRA expects lenders to assess whether you could still repay if rates rose, using a buffer of at least 3 percentage points over the rate you are actually offered. Leave the stress test rate blank and this calculator uses your rate plus 3.00; enter your own to test a bigger rise. For an interest-only loan the test is the principal-and-interest repayment over the years that remain after the interest-only period.

Step-by-step calculation

Limitations

Lenders Mortgage Insurance (LMI) is not calculated; the calculator shows your LVR and warns when it is above 80%. LMI is priced from each insurer's own premium table and is often capitalised into the loan.
Interest is charged on the monthly balance. Lenders accrue interest daily, so a real statement differs by a small amount each month.
Stamp duty, transfer and registration fees, conveyancing, building insurance and strata levies are excluded. Duty is set by each state and territory and varies with price, buyer type and concessions.
The rate is held constant for the whole term. A fixed rate reverts to a variable rate at the end of the fixed period, and variable rates move with the lender's pricing.
This models one loan. Split loans, redraw, package discounts and lender fees are not included.
The stress test is your rate plus 3 points (or a rate you enter), not your lender's assessment. Lenders also apply their own expense benchmarks (such as HEM) and shade non-salary income.

This page is educational. It applies a standard formula to the figures you enter and shows the arithmetic behind the result. It is an estimate, not an offer, a quotation or financial advice: real costs depend on the provider's pricing, fees and underwriting, and on circumstances this calculator does not collect.

Sources & references

How an offset account works — ASIC Moneysmart
Pay off your mortgage faster (extra repayments) — ASIC Moneysmart
Prudential Practice Guide APG 223 — Residential Mortgage Lending (serviceability assessment and interest rate buffer) — Australian Prudential Regulation Authority
APRA maintains current macroprudential policy settings — mortgage serviceability buffer stays at 3 percentage points (May 2026) — Australian Prudential Regulation Authority

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

Do lower monthly mortgage payments always mean a better deal?

Tap to view the answer

No. Lower repayments often result from longer loan terms, which usually increase the total interest paid. Many borrowers focus only on monthly payments and ignore the lifetime cost, so it helps to see the trade-off clearly.

Does it include stamp duty, fees, or LMI?

Tap to view the answer

No — it focuses on principal and interest only. Costs like stamp duty, application fees, and Lenders Mortgage Insurance (LMI) are excluded and should be evaluated separately before finalising a home loan.

How much deposit should I plan for?

Tap to view the answer

Many lenders prefer around a 20% deposit to avoid LMI, though lower deposits may still be accepted. You can estimate repayments at different deposit levels here, but this is general information, not lending advice.

What happens if I make extra repayments on my mortgage?

Tap to view the answer

Extra repayments can reduce total interest and may shorten your loan term, depending on your loan type and lender rules, and even small additional payments can make a noticeable difference over time. This is general information only, not personalised lending advice.

What mortgage features are not reflected in this repayment figure?

Tap to view the answer

Edge cases include interest-only periods, early repayments, offset accounts, and income breaks, all of which can materially change the total interest paid. The tool provides a baseline, not personalised modelling.

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How to Use This Calculator

Enter property and loan details

Provide property price, deposit and loan amount to define your mortgage.

Set interest rate and term

Enter your expected interest rate and loan length.

Add offset and extra repayments

See how offset balances and extra payments reduce interest and loan duration.

Run stress test

Check affordability if rates rise in future.

Understanding Mortgage Payments in Australia

Principal & Interest vs Interest-Only Loans in Australia

Principal & Interest (P&I) loans reduce your outstanding balance with each payment, building equity in your home. Interest-only loans have lower repayments initially but don't reduce the principal amount. Most Australian home buyers use P&I loans for wealth building.

How Offset Accounts Reduce Australian Mortgage Interest

An offset account is a standard Australian banking feature linked to your loan. Funds in an offset account reduce your loan amount for interest calculation purposes without removing money from access. A $50,000 offset balance on a $600,000 loan means you only pay interest on $550,000, saving thousands over the loan term.

APRA Serviceability Assessment & Stress Testing

The Australian Prudential Regulation Authority (APRA) requires lenders to test mortgage affordability. Lenders assess whether you can repay if interest rates rise by 2-3%, typically using a buffer rate. This protects borrowers from over-leveraging in low-rate environments.

Extra Mortgage Repayments & Interest Savings

Even small extra fortnightly repayments can reduce your loan term by years and save substantial interest. A $300 monthly extra payment on a $600,000 loan could save over $100,000 in interest and reduce the loan term from 30 to 25 years. Use our calculator to see the impact.

Fixed vs Variable Rate Mortgages in Australia

Fixed-rate mortgages lock your interest rate for 1-10 years, providing payment certainty. Variable-rate mortgages fluctuate with market conditions. Most Australian borrowers choose variable rates for lower initial costs, but fixed rates provide protection against rate rises.

Loan Term & Total Interest Cost

A 30-year mortgage term is standard in Australia. Shorter terms (15-20 years) reduce total interest but increase monthly repayments. Longer terms (35-40 years) lower repayments but increase total interest paid. Use this calculator to compare different loan terms.

Mortgage Insurance (LMI) & When It Applies

If your deposit is less than 20%, lenders require Lenders Mortgage Insurance (LMI). LMI protects the lender if you default; the cost is added to your loan. Using a 10% deposit means paying LMI, increasing total borrowing costs.

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

M = P x r x (1 + r)^n / ((1 + r)^n - 1)

The level repayment that clears the loan exactly over its term. P is the amount borrowed, r the monthly rate (annual rate divided by 12) and n the number of monthly repayments.

Interest-only period

M_io = P x r,   principal unchanged until the period ends

Offset account

interest charged on (balance - offset balance)

Money in a linked offset account is subtracted from the loan balance before interest is calculated each day. The repayment does not change, so more of it goes to principal and the loan ends sooner.

Serviceability buffer (stress test)

assessment rate = loan rate + buffer   (APRA APG 223: at least 3.00 percentage points)

Step-by-step calculation

Limitations

Lenders Mortgage Insurance (LMI) is not calculated; the calculator shows your LVR and warns when it is above 80%. LMI is priced from each insurer's own premium table and is often capitalised into the loan.
Interest is charged on the monthly balance. Lenders accrue interest daily, so a real statement differs by a small amount each month.
Stamp duty, transfer and registration fees, conveyancing, building insurance and strata levies are excluded. Duty is set by each state and territory and varies with price, buyer type and concessions.
The rate is held constant for the whole term. A fixed rate reverts to a variable rate at the end of the fixed period, and variable rates move with the lender's pricing.
This models one loan. Split loans, redraw, package discounts and lender fees are not included.
The stress test is your rate plus 3 points (or a rate you enter), not your lender's assessment. Lenders also apply their own expense benchmarks (such as HEM) and shade non-salary income.

Calculator inputs

Property & Loan

Loan Terms

Offset & Extra Repayments

Stress Test

Your results

Sources & methodology

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

Interest-only period

Offset account

Serviceability buffer (stress test)

Step-by-step calculation

Limitations

Sources & references

Do lower monthly mortgage payments always mean a better deal?

Does it include stamp duty, fees, or LMI?

How much deposit should I plan for?

What happens if I make extra repayments on my mortgage?

What mortgage features are not reflected in this repayment figure?

Related calculators

More Australia calculators

Calculator inputs

Property & Loan

Loan Terms

Offset & Extra Repayments

Stress Test

Your results

Sources & methodology

How to Use This Calculator

Example: $600,000 loan at 6.5% over 30 years

Understanding Your Results

Key Tips

Understanding Mortgage Payments in Australia

Principal & Interest vs Interest-Only Loans in Australia

How Offset Accounts Reduce Australian Mortgage Interest

APRA Serviceability Assessment & Stress Testing

Extra Mortgage Repayments & Interest Savings

Fixed vs Variable Rate Mortgages in Australia

Loan Term & Total Interest Cost

Mortgage Insurance (LMI) & When It Applies

Formula & methodology

Formula used

Scheduled repayment (principal and interest)

Interest-only period

Offset account

Serviceability buffer (stress test)

Step-by-step calculation

Limitations

Sources & references

How to Use This Calculator

Example: $600,000 loan at 6.5% over 30 years

Understanding Your Results

Key Tips

Understanding Mortgage Payments in Australia

Principal & Interest vs Interest-Only Loans in Australia

How Offset Accounts Reduce Australian Mortgage Interest

APRA Serviceability Assessment & Stress Testing

Extra Mortgage Repayments & Interest Savings

Fixed vs Variable Rate Mortgages in Australia

Loan Term & Total Interest Cost

Mortgage Insurance (LMI) & When It Applies