Interest-only Home Loan Calculator

Interest-only mortgage repayment calculator

Savings.com.au’s interest-only home loan calculator allows you to compare interest-only (IO) home loans with principal and interest (P&I) loans, seeing how much more you could pay in the long term despite reduced interest-only repayments in the short term.

To use our interest-only home loan calculator, enter:

The loan amount
The interest rate of the loan
The loan term (number of years of the entire loan) and the interest-only period (in years)
Any monthly fees

You can see the extra you will pay in total interest as well as compare repayments for both interest-only and principal and interest loans.

What is an interest-only mortgage?

Interest-only loans are home loans which delay the repayment of the borrowed amount (the ‘principal’) for a fixed term, usually three to five years. This means for a period, generally at the beginning of the loan, the borrowers only repay the interest component of their home loan, before it reverts to repaying both principal and interest.

Why switch to an interest-only home loan?

Interest-only home loans can be described as “less now, more later” as repayments for a few years will be significantly lower but can be considerably higher once the interest-only period ends. They’re particularly attractive to some investors who can buy property while maximising their cash flow and increase the tax-deduction capacity of their loans.

As an example of how interest-only loans can cost less up front but be more expensive later on, let’s look at a $400,000 home loan with a 4.00% p.a. interest rate over 30 years:

With a five-year IO period, monthly repayments would be $1,333 before reverting to $2,111 for the remaining 25 years
With a simple P&I loan, the monthly repayments remain constant at $1,910

The IO loan will cost the borrower $313,400 in total interest, while the P&I option will cost around $287,500 - a difference of nearly $30,000.

Learn more about the pros and cons of interest-only 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.

Loan amount

Compare

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	LVR	as ofApril 28, 2024

	6.04^%_p.a.	6.06^%_p.a.	^$2,408	Variable	^$0	^$530	70^%	More details
FEATUREDOnline 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
FEATUREDOnline 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 More details
	5.99^%_p.a.	5.90^%_p.a.	^$2,396	Variable	^$0	^$0	80^%	More details
FEATUREDApply 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.
FEATUREDApply 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. More details
	6.04^%_p.a.	6.06^%_p.a.	^$2,408	Variable	^$0	^$530	90^%	More details
4.6 Star Customer Ratings	loans.com.au – Variable Home Loan (LVR < 90%)
4.6 Star Customer Ratings loans.com.au – Variable Home Loan (LVR < 90%) More details
	6.09^%_p.a.	6.19^%_p.a.	^$2,421	Fixed	^$0	^$350	80^%	More details
	Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years
Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years More details
	6.19^%_p.a.	6.21^%_p.a.	^$2,447	Variable	^$0	^$250	80^%	More details
	ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%) Home loan specialists available today
ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%) Home loan specialists available today More details
	6.59^%_p.a.	7.68^%_p.a.	^$2,552	Fixed	^$395	^$0	70^%	More details
	Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)
Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%) More details
	6.69^%_p.a.	7.06^%_p.a.	^$2,578	Variable	^$395	^$200	80^%	More details
	Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%)
Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%) More details
	6.84^%_p.a.	6.88^%_p.a.	^$2,618	Variable	^$0	^$0	95^%	More details
	NAB – Base Variable Home Loan (Principal and Interest) (New Customer)
NAB – Base Variable Home Loan (Principal and Interest) (New Customer) More details
	6.84^%_p.a.	7.06^%_p.a.	^$2,618	Fixed	^$0	^$160	80^%	More details
	ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)
ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%) More details
	5.99^%_p.a.	6.51^%_p.a.	^$2,396	Variable	^$0	^$530	90^%	More details
	loans.com.au – Solar Home Loan (Principal & Interest) (LVR < 90%)
loans.com.au – Solar Home Loan (Principal & Interest) (LVR < 90%) More details
	5.99^%_p.a.	6.01^%_p.a.	^$2,396	Variable	^$0	^$210	70^%	More details
	Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)
Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%) More details
	5.99^%_p.a.	7.76^%_p.a.	^$2,396	Fixed	^$395	^$0	80^%	More details
	Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years
Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years More details
	6.74^%_p.a.	8.31^%_p.a.	^$2,592	Fixed	^$8	^$800	95^%	More details
	Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years
Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years More details
	5.69^%_p.a.	6.37^%_p.a.	^$2,319	Fixed	^$390	^$0	80^%	More details
	HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)
HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%) More details
	5.99^%_p.a.	6.32^%_p.a.	^$2,396	Fixed	^$6	^$799	80^%	More details
	IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)
IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%) More details
	6.29^%_p.a.	6.23^%_p.a.	^$2,473	Fixed	^$0	^$798	80^%	More details
	ING – Fixed Rate Home Loan 5 Years (LVR < 80%)
ING – Fixed Rate Home Loan 5 Years (LVR < 80%) More details
	6.19^%_p.a.	7.50^%_p.a.	^$2,447	Fixed	^$0	^$595	95^%	More details
	Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years
Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years More details
	6.39^%_p.a.	7.98^%_p.a.	^$2,499	Fixed	^$395	^$0	95^%	More details
	Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan (Principal and Interest) 1 Year
Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan (Principal and Interest) 1 Year More details
	6.59^%_p.a.	7.27^%_p.a.	^$2,552	Fixed	^$0	^$160	90^%	More details
	ANZ – Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR > 80%)
ANZ – Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR > 80%) More details
	6.19^%_p.a.	6.22^%_p.a.	^$2,447	Fixed	^$0	^$400	90^%	More details
	Well Money – Well Balanced Home Loan Fixed (Principal and Interest) 1 Year (LVR < 90%)
Well Money – Well Balanced Home Loan Fixed (Principal and Interest) 1 Year (LVR < 90%) More details
	6.54^%_p.a.	6.56^%_p.a.	^$2,180	Variable	^$0	^$530	80^%	More details
	loans.com.au – Variable Home Loan (LVR < 80%) (Interest Only)
loans.com.au – Variable Home Loan (LVR < 80%) (Interest Only) More details
	6.74^%_p.a.	7.20^%_p.a.	^$2,592	Variable	^$0	^$300	95^%	More details
	P&N Bank – & Introductory Home Loan
P&N Bank – & Introductory Home Loan More details
	6.69^%_p.a.	7.19^%_p.a.	^$2,578	Fixed	^$0	^$160	80^%	More details
	ANZ – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 80%)
ANZ – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 80%) More details
	6.69^%_p.a.	6.32^%_p.a.	^$2,230	Fixed	^$0	^$798	80^%	More details
	ING – Fixed Rate Home Loan 3 Years (LVR < 80%) (Interest Only)
ING – Fixed Rate Home Loan 3 Years (LVR < 80%) (Interest Only) More details
	6.54^%_p.a.	6.34^%_p.a.	^$2,180	Fixed	^$0	^$300	80^%	More details
	P&N Bank – Fixed Rate Home Loan (Interest Only) 1 Year (LVR < 80%)
P&N Bank – Fixed Rate Home Loan (Interest Only) 1 Year (LVR < 80%) More details
	5.99^%_p.a.	6.37^%_p.a.	^$2,396	Fixed	^$10	^$150	80^%	More details
	BOQ – Standard Fixed Rate Home Loan (Principal and Interest) (New Customer) 4 Years ($150k+, LVR < 80%)
BOQ – Standard Fixed Rate Home Loan (Principal and Interest) (New Customer) 4 Years ($150k+, LVR < 80%) More details
	6.29^%_p.a.	7.97^%_p.a.	^$2,473	Fixed	^$395	^$0	80^%	More details
	Beyond Bank – Total Home Loan Package Home Loan Fixed Special 1 Year (LVR < 80%) (New Customer Only)
Beyond Bank – Total Home Loan Package Home Loan Fixed Special 1 Year (LVR < 80%) (New Customer Only) More details
	6.69^%_p.a.	7.77^%_p.a.	^$2,578	Fixed	^$395	^$0	80^%	More details
	Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR 70%-80%)
Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR 70%-80%) More details
	6.69^%_p.a.	6.86^%_p.a.	^$2,578	Fixed	^$8	^$0	70^%	More details
	NAB – Tailored Home Loan Fixed (Principal and Interest) 1 Year (LVR < 70%)
NAB – Tailored Home Loan Fixed (Principal and Interest) 1 Year (LVR < 70%) More details
	6.74^%_p.a.	6.40^%_p.a.	^$2,247	Variable	^$0	^$0	70^%	More details
	Suncorp Bank – Personal Purpose Back to Basics Special (Interest Only) (New Customer) (LVR ≤ 70%)
Suncorp Bank – Personal Purpose Back to Basics Special (Interest Only) (New Customer) (LVR ≤ 70%) More details
	6.79^%_p.a.	6.44^%_p.a.	^$2,263	Fixed	^$0	^$798	80^%	More details
	ING – Fixed Rate Home Loan 5 Years (LVR < 80%) (Interest Only)
ING – Fixed Rate Home Loan 5 Years (LVR < 80%) (Interest Only) More details
	6.84^%_p.a.	7.16^%_p.a.	^$2,618	Variable	^$0	^$0	95^%	More details
	Westpac – Flexi First Option Home Loan (New Customer) (LVR > 80%)
Westpac – Flexi First Option Home Loan (New Customer) (LVR > 80%) More details
	6.83^%_p.a.	6.79^%_p.a.	^$2,277	Variable	^$375	^$0	60^%	More details
	Suncorp Bank – Home Package Plus Personal Variable Special (Interest Only) ($150k+) (LVR ≤ 60%)
Suncorp Bank – Home Package Plus Personal Variable Special (Interest Only) ($150k+) (LVR ≤ 60%) More details
	7.24^%_p.a.	7.50^%_p.a.	^$2,726	Variable	^$15	^$995	55^%	More details
	Pepper – Pepper Clear Home Loan (Prime) (Principal and Interest) (LVR < 55%)
Pepper – Pepper Clear Home Loan (Prime) (Principal and Interest) (LVR < 55%) More details

Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

Product Features

Immediate cashback upon settlement
$2,000 for loans up to $700,000
$4,000 for loans over $700,000

Monthly repayments:$2,408

6.04%Advertised Rate (p.a.)

6.06%Comparison Rate*

More details

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 April 28, 2024. View disclaimer.

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Infochoice group. In the interests of full disclosure, the Infochoice Group are associated with the Firstmac Group. Read about how Infochoice Group manages potential conflicts of interest, along how we get paid.

Savings.com.au Pty Ltd ACN 161 358 363 operates as an Australian Financial Services Licensee and an Australian Credit Licensee Number 515843. Savings.com.au is a general information provider and in giving you general product information, Savings.com.au is not making any suggestion or recommendation about any particular product and all market products may not be considered. If you decide to apply for a credit product listed on Savings.com.au, you will deal directly with a credit provider, and not with Savings.com.au. Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au's Financial Services and Credit Guide (FSCG). The information provided constitutes information which is general in nature and has not taken into account any of your personal objectives, financial situation, or needs. Savings.com.au may receive a fee for products displayed.

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Interest-only Mortgage Calculator

Interest-only mortgage repayment calculator

What is an interest-only mortgage?

Why switch to an interest-only home loan?

Looking for a home loan?

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

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

Unloan – Variable Rate Home Loan LVR < 80%

Unloan – Variable Rate Home Loan LVR < 80%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANZ – Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR > 80%)

ANZ – Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR > 80%)

Well Money – Well Balanced Home Loan Fixed (Principal and Interest) 1 Year (LVR < 90%)

Well Money – Well Balanced Home Loan Fixed (Principal and Interest) 1 Year (LVR < 90%)

loans.com.au – Variable Home Loan (LVR < 80%) (Interest Only)

loans.com.au – Variable Home Loan (LVR < 80%) (Interest Only)

P&N Bank – & Introductory Home Loan

P&N Bank – & Introductory Home Loan

ANZ – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 80%)

ANZ – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR < 80%)

ING – Fixed Rate Home Loan 3 Years (LVR < 80%) (Interest Only)

ING – Fixed Rate Home Loan 3 Years (LVR < 80%) (Interest Only)

P&N Bank – Fixed Rate Home Loan (Interest Only) 1 Year (LVR < 80%)

P&N Bank – Fixed Rate Home Loan (Interest Only) 1 Year (LVR < 80%)

BOQ – Standard Fixed Rate Home Loan (Principal and Interest) (New Customer) 4 Years ($150k+, LVR < 80%)

BOQ – Standard Fixed Rate Home Loan (Principal and Interest) (New Customer) 4 Years ($150k+, LVR < 80%)

Beyond Bank – Total Home Loan Package Home Loan Fixed Special 1 Year (LVR < 80%) (New Customer Only)

Beyond Bank – Total Home Loan Package Home Loan Fixed Special 1 Year (LVR < 80%) (New Customer Only)

Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR 70%-80%)

Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR 70%-80%)

NAB – Tailored Home Loan Fixed (Principal and Interest) 1 Year (LVR < 70%)

NAB – Tailored Home Loan Fixed (Principal and Interest) 1 Year (LVR < 70%)

Suncorp Bank – Personal Purpose Back to Basics Special (Interest Only) (New Customer) (LVR ≤ 70%)

Suncorp Bank – Personal Purpose Back to Basics Special (Interest Only) (New Customer) (LVR ≤ 70%)

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

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

Westpac – Flexi First Option Home Loan (New Customer) (LVR > 80%)

Westpac – Flexi First Option Home Loan (New Customer) (LVR > 80%)

Suncorp Bank – Home Package Plus Personal Variable Special (Interest Only) ($150k+) (LVR ≤ 60%)

Suncorp Bank – Home Package Plus Personal Variable Special (Interest Only) ($150k+) (LVR ≤ 60%)

Pepper – Pepper Clear Home Loan (Prime) (Principal and Interest) (LVR < 55%)

Pepper – Pepper Clear Home Loan (Prime) (Principal and Interest) (LVR < 55%)

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