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Extra Repayment Calculator

See how much sooner you’ll pay off your home loan, and how much interest you’ll save, by paying extra each month or a lump sum.

$

What you owe now

%
$
$

Paid now

Mortgage-free sooner by

2 years, 11 months

Paid off in 22 years, 1 month instead of 25 years

Interest saved
$50,764
Monthly repayment with extra
$3,122.95
Interest over the rest of the mortgage
  • Interest you’ll pay$326,121
  • Interest saved$50,764

What this means

Every extra repayment goes straight off what you owe, so you stop paying interest on it. That’s like a guaranteed return of 5%, your mortgage rate.

Clear debts with higher rates, like credit cards, first, and keep an emergency fund before overpaying. Check your lender’s limits on overpayments without a fee.

Next step

With and without overpaying

WithoutWith
Monthly repayment$2,922.95$3,122.95
Lump sum now––
Time left25 years22 years, 1 month
Total interest$376,885$326,121
Total paid$876,885$826,121

Before you overpay

Floating-rate loans usually allow extra repayments at any time. Fixed-rate loans often limit them, and paying off more can mean a break fee.

Keep some savings for emergencies first. And if your savings earn more after tax than your mortgage rate, saving can beat overpaying.

Principal and interest paid each year
$37,475$18,738$0
136912151821
PrincipalInterest
Assumptions in this estimate
  • Your repayment stays the same, so overpaying shortens the mortgage. Some lenders lower your repayment instead, which saves less interest.
  • Assumes the interest rate stays the same for the rest of the mortgage.
  • Fees or charges for overpaying aren’t included.
Spotted a mistake? Tell us

How the calculator works

  1. Your home loan now: what you owe, the rate and the years left give your current repayment.
  2. Paying extra: an extra amount with every repayment, a one-off lump sum, or both. Your repayment stays the same, so the home loan ends sooner.
  3. The difference: how much sooner it’s paid off, and the interest you save.

Example

$500,000 at 5% with 25 years left, repaid at $2,922.95 a month:

Paying extra Paid off in Interest saved
Nothing 25 years –
$200 a month 22 years, 1 month $50,764
$500 a month 18 years, 10 months $104,606
$10,000 lump sum 24 years, 1 month $24,046

Last updated

Frequently asked questions

How much will I save by paying $200 extra a month?

On a $500,000 home loan at 5% with 25 years left, $200 extra a month clears it 2 years, 11 months sooner and saves $50,764 in interest.

Is a lump sum or extra each month better?

Both help, and the sooner money goes in, the more interest it saves. On the same home loan, a $10,000 lump sum now clears it 11 months sooner and saves $24,046.

Can I make extra repayments on a fixed rate?

Usually only a limited amount. Paying off more can mean a break fee. Floating-rate loans usually allow extra repayments at any time.

Should I pay off my home loan or save?

Keep some savings for emergencies first. After that, if your savings earn more after tax than your home loan rate, saving can come out ahead.