Home Loan Calculator Australia 2026

Calculate your repayments, total interest, and affordability for any Australian home loan.

Loan Details

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Show advanced options

Other Expenses

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Affordability Analysis

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How the Home Loan Calculator Works

Monthly Repayment Formula

Uses the standard mortgage amortisation formula: M = P × [r(1+r)ⁿ / ((1+r)ⁿ − 1)] where P = loan amount, r = monthly interest rate, and n = total payments.

Affordability Ratios

Housing Cost Ratio — your total housing costs as a % of income. Below 28% is comfortable; 28–36% is moderate; above 43% is a warning sign.

Extra Repayments

Making extra repayments reduces the outstanding principal faster, which means less interest accrues each month and your loan is paid off sooner.

Disclaimer

Results are estimates based on inputs provided. Actual repayments may vary. This calculator does not constitute financial advice. Always consult a qualified mortgage broker or financial adviser.

Frequently Asked Questions

How much will my repayments be on a $500,000 home loan?
On a $500,000 loan at 6.2% over 30 years, your monthly repayments would be approximately $3,067. Use our calculator above to see exact figures for your loan amount, rate and term.

What is the current average home loan interest rate in Australia?
As of 2026, the average variable home loan rate in Australia is around 6.0–6.5% p.a. Rates vary by lender, loan type and your credit profile. Our calculator uses the rate you enter to give you personalised results.

How does an offset account reduce my home loan?
An offset account reduces the loan balance used to calculate interest. For example, if you owe $400,000 and have $50,000 in offset, you only pay interest on $350,000. This can save thousands over the life of your loan.

Should I choose a 25-year or 30-year home loan term?
A shorter term means higher monthly repayments but significantly less total interest. For example, a $500,000 loan at 6% costs about $579,000 in interest over 30 years but only $444,000 over 25 years — a saving of $135,000.

What is LMI and when do I need to pay it?
Lenders Mortgage Insurance (LMI) is required when your deposit is less than 20% of the property value. LMI protects the lender (not you) and can cost thousands of dollars, added to your loan or paid upfront.

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Last updated: April 2026

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