See how much time and interest your client saves by paying a little extra each month, or making a one-off lump sum. One of the most persuasive numbers you can put in front of a borrower.
The loan
Interest saved
You could be debt-free sooner.
How brokers use this
- Turn a rate loss into a win. If you can’t beat a client’s rate, show them how $200–$300 a month extra saves tens of thousands — you’ve still added real value.
- Make the offset/redraw case. Pair this with an offset so the extra stays accessible. Clients love saving interest without locking money away.
- Anchor the annual review. “Last year you said you’d add $300 a month — here’s what that’s already saved you.” Powerful retention.
- Use the lump-sum field for tax refunds, bonuses or an inheritance to show the outsized impact of a one-off payment early in the loan.
How extra repayments save you money
Every dollar you pay above the minimum goes straight to reducing the principal. Because interest is charged on the outstanding balance, a lower balance means less interest every single period from then on — and that compounds over the life of the loan. The earlier you make extra repayments, the bigger the effect, which is why a lump sum in year one saves far more than the same amount in year fifteen.
This calculator runs a full month-by-month amortisation of the loan with and without your extra contributions, then compares the two: how much sooner the loan is repaid, and how much interest is avoided. Note that variable-rate loans generally allow unlimited extra repayments, while fixed-rate loans often cap them — worth checking the product’s terms.
Frequently asked questions
Can I always make extra repayments?
On most variable-rate home loans, yes, and usually without penalty. Fixed-rate loans often limit extra repayments (for example to $10,000–$30,000 a year) and may charge break costs if you exceed the cap. Always check the specific product’s terms.
Should extra repayments go into the loan or an offset account?
Both reduce the interest you pay by a similar amount. An offset keeps the money accessible (useful for emergencies or if you might turn the property into an investment later), while extra repayments into the loan reduce redraw availability at some lenders. A broker can advise what suits your situation.
Why does an early lump sum save so much?
Because interest is charged on the balance, reducing the balance early means you avoid interest on that amount for the entire remaining term. The same lump sum paid near the end of the loan has far less time to work, so it saves much less.
Is this a guarantee of savings?
No. It’s an estimate based on a constant interest rate and regular payments. Real results vary with rate changes, fees, redraw and how the lender calculates interest. Confirm your loan’s terms with the lender or your broker.
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Disclaimer: This calculator provides estimates for general information only and is not credit assistance, a credit quote, or financial advice. It assumes a constant interest rate and does not account for all fees, fixed-rate repayment caps, or lender-specific interest methods. Confirm figures with the lender or a licensed mortgage broker.