Savings .com.au

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.

Lender

Variable
More details
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
4.6 Star Customer Ratings

loans.com.au – Variable Home Loan P&I <90%

  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
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.
Disclosure
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.
Disclosure
Variable
More details
  • Easy application. Fast approval. No annual fee.
  • Unlimited additional repayments free of charge.
  • Redraw freely - Access your additional payments.
Disclosure

Ubank (part of NAB) – Neat home loan - max. 60% LVR (Owner occupied, Principal and interest)

  • Easy application. Fast approval. No annual fee.
  • Unlimited additional repayments free of charge.
  • Redraw freely - Access your additional payments.
Disclosure
Fixed
More details
Disclosure

Macquarie Bank – Basic Home Loan (Owner Occupier, Principal and Interest, max LVR 70%) (2 years)

    Disclosure
    Variable
    More details
    Disclosure

    Ubank (part of NAB) – Neat home loan - max. 80% LVR (Owner occupied, Principal and interest)

      Disclosure
      Variable
      More details
      Disclosure

      Macquarie Bank – Basic Home Loan (Owner Occupier, Principal and Interest, max 60% LVR)

        Disclosure
        Variable
        More details

        AMP – Essential Home Loan (Owner Occupied, Principal and Interest, $750,000+, <= LVR 60%)

          Variable
          More details

          Great Southern Bank – Offset Variable - Owner Occupier Principal & Interest (LVR is 70%)

            Variable
            More details

            Bank of Queensland – Owner Occupied Economy Discount Rate (max 80% LVR)

              Variable
              More details

              Bendigo Bank – Complete Home Loan (OO P&I 60% - 80%)

                Variable
                More details
                Disclosure

                Macquarie Bank – Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)

                  Disclosure
                  Variable
                  More details
                  Disclosure

                  ANZ – Simplicity PLUS Home Loan (Principal and Interest) (LVR < 70%) (New Customer) Special offer

                    Disclosure
                    VariableN/A
                    More details
                    Disclosure

                    Commonwealth Bank – Extra Home Loan (Principal and Interest) (LVR 60%-70%)

                      Disclosure
                      VariableN/AN/A
                      More details
                      Disclosure

                      Westpac – Flexi First Option Home Loan (Promo) - Principal & Interest (LVR 70-80%)

                        Disclosure
                        Variable
                        More details

                        ING – Mortgage Simplifier ($150k+ where LVR >90% - O/Occ) P&I

                          Variable
                          More details
                          Disclosure

                          NAB – Tailored Home Loan Variable Rate - Principal and Interest LVR 60% or less

                            Disclosure
                            Fixed
                            More details
                            Disclosure

                            Macquarie Bank – Basic Home Loan (Owner Occupier, Principal and Interest, max LVR 70%) (3 years)

                              Disclosure
                              Variable
                              More details
                              • No application, ongoing monthly or annual fees.
                              • Available for refinance or purchases. Quick and easy online application process.
                              • Dedicated loan specialist throughout the loan application.
                              • Discounted interest rate for 5 years for homes with an eligible solar system
                              Disclosure

                              loans.com.au – Solar Home Loan P&I <90%

                              • No application, ongoing monthly or annual fees.
                              • Available for refinance or purchases. Quick and easy online application process.
                              • Dedicated loan specialist throughout the loan application.
                              • Discounted interest rate for 5 years for homes with an eligible solar system
                              Disclosure
                              Variable
                              More details

                              MOVE Bank – Offset Home Loan (Principal & Interest) LVR <80%

                                Variable
                                More details

                                Athena Home Loans – Straight Up Owner Occupied - Obliterate (LVR < 50%) (Principal and Interest)

                                  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 February 12, 2025. View disclaimer.

                                  Important Information and Comparison Rate Warning