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A home loan is likely to be the biggest expense you will ever have. While the home itself will cost several hundred thousand dollars at least, the interest component of that loan could easily add another couple of hundred thousand dollars. The average home loan can last 25-30 years, which is a long time to pay something off. The longer you have the loan for, the more you’ll have to pay.

But what if there was a way to reduce the length of your home loan, and save on interest? By making an extra lump sum payment off your loan, you can.

Any extra repayment you make - be it lump sum repayments or recurring repayments above the minimum - can save you money simply because it reduces the principal on the loan, aka the borrowed amount left to repay. Interest is charged on this principle amount, so the smaller the principal, the less there is to charge interest on.

Also the more you repay, the quicker you’ll pay off the loan. Our home loan extra repayment & lump sum payment calculator can show you just how much difference extra repayments can make to your overall loan.

All you have to do with our extra repayment/lump sum calculator is:

  • Enter the loan amount and the loan term (the length of the loan)
  • Enter your loan’s interest rate
  • Enter your repayment frequency
  • Enter how much your extra lump sum payment will be, or how much extra you’ll be paying per month
  • Specify how far into the loan schedule you’ll make these extra repayments

Let’s say you have a 25-year, $400,000 home loan at a 3.50% interest rate. Using our lump sum repayment calculator, you can estimate that a $25,000 one-off payment into your home loan could shave 21 months and $17,500 off your home loan.

Using our extra repayment calculator, if you started paying an extra $200 a month into that same home loan, you could save more than 4 years and $38,000.

So if you’ve received some extra cash lately (like a work bonus or an inheritance) or just want to get ahead of your loan, then use our extra repayment and lump sum calculator to see how much you could save by using that money to pay down your mortgage.

Compare Home Loans


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Variable
More details
Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Apply In Minutes

Unloan – Variable Rate Home Loan LVR < 80%

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Variable
More details
4.6 Star Customer Ratings
4.6 Star Customer Ratings

loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
    More details
    Flexible Home Loan Options
    • $0 application fee & fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    Flexible Home Loan Options

    Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

    • $0 application fee & fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    Variable
    More details

    ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%)

    • Home loan specialists available today
    Fixed
    More details

    Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years

      Fixed
      More details

      Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

        Variable
        More details

        Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%)

          Variable
          More details

          NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

            Fixed
            More details

            ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

              Variable
              More details

              loans.com.au – Solar Home Loan (Principal & Interest) (LVR < 90%)

                Variable
                More details

                Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                  Fixed
                  More details

                  Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                    Fixed
                    More details

                    Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

                      Fixed
                      More details

                      HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                        Fixed
                        More details

                        IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                          Fixed
                          More details

                          ING – Fixed Rate Home Loan 5 Years (LVR < 80%)

                            Fixed
                            More details

                            Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years

                              Fixed
                              More details

                              Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan (Principal and Interest) 1 Year

                                Important Information and Comparison Rate Warning

                                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2024. View disclaimer.