Extra Loan Repayments Calculator

How to use this calculator

Firstly work out how much you are able to set aside for your home loan repayments. The easiest way to do this is to add the rent that you are currently paying to the amount that you are currently saving to the amount that you could realistically cut from your spending. This is a reasonable figure for how much you can afford to repay.

If you want to maximise your savings then try talking to your employer to see if your home loan repayments can be made directly from your salary. This means that you don’t have to budget as you never see the money in your cheque account, the extra payments go directly into your mortgage.

Try entering different figures into the calculator to see how much you can save and how much you can afford.

Why does making extra repayments save so much?

When you first setup your home loan, around 90% of the repayments are going towards the interest. Very little is actually reducing the balance on your loan. If you make additional repayments then these are going directly off of the balance, and will rapidly reduce the amount that you owe.

As the amount that you owe drops, the amount of interest that you are charged will reduce as well. As a result, the savings begin to compound and your loan will be paid off much faster than if you just made the minimum payments over 30 years.

Find more loan calculators

You can find more calculators on our loan calculators page.

3 Responses leave one →
  1. July 15, 2015

    3. Living without a bugedt. Living without a bugedt is a guaranteed recipe for financial disaster. Having a plan for your money no matter how much or how little is one of the best things you can do to avoid financial traps. When we have a plan we are less likely to fall.a0Read more here

  2. November 15, 2023

    My husband and i got quite cheerful Raymond managed to finish off his investigation using the ideas he obtained from your own site. It’s not at all simplistic just to continually be giving out facts that many most people may have been trying to sell. Therefore we consider we’ve got the website owner to be grateful to for that. All of the explanations you made, the easy website menu, the friendships you can give support to engender – it is most sensational, and it is leading our son in addition to us recognize that the subject is satisfying, which is extraordinarily pressing. Many thanks for all the pieces!

  3. November 30, 2023

    I truly wanted to construct a message so as to thank you for those superb recommendations you are giving here. My extensive internet look up has at the end of the day been paid with reputable knowledge to share with my friends and family. I ‘d tell you that we site visitors actually are unequivocally fortunate to dwell in a very good community with very many special people with valuable basics. I feel quite blessed to have come across your site and look forward to plenty of more entertaining times reading here. Thanks once again for everything.

Leave a Reply

Note: You can use basic XHTML in your comments. Your email address will never be published.

Subscribe to this comment feed via RSS