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See how making extra mortgage payments could reduce your interest costs and help you pay off your home loan sooner.

Extra Mortgage Payments Calculator

How to Use This Extra Mortgage Payments Calculator

Use the calculator to see how making additional monthly repayments could affect your mortgage.

Step-by-step:

Enter your loan amount
Add your current mortgage balance or the loan amount you want to calculate.
Enter your interest rate
Add the annual interest rate on your mortgage.
Enter your loan term
Choose the number of years remaining on your loan.
Enter your extra monthly payment
Add the amount you plan to pay on top of your regular mortgage repayment each month.
Click Calculate
The calculator will estimate your regular monthly payment, new payment amount, potential interest savings and how much sooner you could repay the loan.

Understanding Your Results

Your results will show:

Standard Monthly Payment — your estimated repayment without extra payments.
Monthly Payment With Extra — your regular repayment plus your chosen extra amount.
Estimated Interest Saved — the potential reduction in interest over the life of the loan.
Estimated Time Saved — approximately how much sooner the mortgage could be repaid.
Repayment Schedule — a month-by-month estimate of your principal, interest and remaining balance.

⚠️ Disclaimer

This calculator provides estimates for general informational purposes only and does not constitute financial advice. Actual mortgage repayments, interest savings and loan terms may vary depending on your lender, fees, interest rate changes, repayment structure and how additional payments are applied. Check your loan terms and confirm figures with your lender or a qualified mortgage professional before making financial decisions.

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What is a Extra Mortgage Payments Calculator?

An Extra Mortgage Payments Calculator helps you estimate how making additional repayments could affect the total cost and length of your home loan.

When you take out a mortgage, part of each repayment reduces the loan balance while another part pays interest. By paying more than your required repayment, you can reduce the outstanding balance faster. This may mean less interest is charged over time and your mortgage is paid off sooner.

For example, imagine you have a $400,000 mortgage with a 30-year loan term. Adding an extra $200 per month may seem small compared with the size of the loan, but those additional repayments can add up significantly over many years.

The calculator lets you compare your standard repayment with a scenario that includes extra monthly payments. It estimates:

Your standard monthly mortgage payment
Your new monthly payment including the extra amount
How much interest you could potentially save
How much sooner you could pay off the mortgage
How your remaining loan balance changes over time

Why Extra Payments Can Make a Difference

Extra repayments reduce your loan principal faster. Because future interest is generally calculated using the outstanding balance, reducing that balance earlier can reduce the amount of interest charged over the remaining life of the loan.

Even relatively small extra payments can make a noticeable difference when they are made consistently over a long period.

Important: Actual savings depend on your loan terms, interest rate and how your lender applies additional repayments.

Why Extra Mortgage Repayments Work So Well

Extra mortgage payments can make a significant difference because they help reduce your outstanding loan balance faster.

With most mortgages, each regular payment is divided between principal and interest. The principal reduces the amount you owe, while the interest is the cost charged by the lender for borrowing the money.

When you make an additional payment toward your principal, your balance falls faster. A lower balance can mean less interest is charged over time, allowing more of your future payments to go toward reducing the loan itself.

The Effect Can Build Over Time

The earlier you reduce your mortgage balance, the longer you may benefit from paying interest on a smaller amount.

For example, consistently adding $100 or $200 per month may not seem significant compared with a large mortgage, but over many years those extra payments could potentially:

Reduce your total interest costs
Shorten your mortgage term
Build home equity faster
Help you become mortgage-free sooner

The exact savings depend on your loan balance, interest rate, remaining term and lender's rules for extra repayments.

Want to see your full repayment breakdown? Use our Amortization Calculator to view how principal, interest and your remaining balance may change throughout your loan.

white and red wooden house miniature on brown table

How Much Could Extra Mortgage Payments Save? Example Scenarios

Even relatively small extra mortgage payments can reduce the amount of interest you pay and shorten your loan term.

The examples below are illustrative and assume the interest rate remains unchanged for the full loan term.

Example 1 — $500,000 Mortgage at 6% for 30 Years

The standard monthly payment would be approximately $2,998.

With an extra $200 per month, the total monthly payment becomes about $3,198. Over time, those additional payments could reduce the amount of interest paid and help you repay the mortgage several years sooner.

Increasing the extra payment to $500 per month could produce even greater savings and shorten the repayment period further.

Example 2 — $700,000 Mortgage at 6% for 30 Years

The standard monthly payment would be approximately $4,197.

Adding an extra $300 per month means paying approximately $4,497 per month. Because the loan balance is reduced faster, less interest may be charged over the remaining life of the mortgage.

An extra $700 per month would reduce the balance even faster, potentially saving substantially more interest and time.

Example 3 — $400,000 Mortgage at 6% for 25 Years

The standard monthly payment would be approximately $2,577.

Adding $150 per month increases the payment to approximately $2,727, while an additional $400 per month would bring it to approximately $2,977.

Over a long loan term, consistently making these extra payments can significantly change the total cost and repayment time.

Small Extra Payments Can Add Up

You don't necessarily need to make very large additional payments to make a difference. What matters is how much extra you pay, how early you start, your interest rate and how consistently you make the additional repayments.

Try your own numbers in the Extra Mortgage Payments Calculator above to estimate your potential interest and time savings.

Extra Payments on Variable vs Fixed-Rate Mortgages

Before making extra mortgage payments, it’s important to understand your loan terms. Some mortgages allow additional repayments freely, while others may place limits on how much extra you can pay or charge fees in certain circumstances.

Variable-rate mortgages
Variable-rate loans may provide more flexibility for making additional repayments. Paying extra can reduce your outstanding principal faster, potentially lowering future interest costs and shortening your loan term. However, repayment rules vary between lenders, so check your loan agreement first.

Fixed-rate mortgages
Fixed-rate loans can have different rules for additional repayments. Some lenders allow extra payments up to a certain amount, while others may apply limits or fees, particularly during the fixed-rate period.

Before making a large additional payment, check whether your mortgage has any extra repayment limits, prepayment penalties or early repayment charges.

Split mortgages
If your mortgage is divided between fixed and variable portions, different repayment rules may apply to each part of the loan. You may have greater flexibility to make extra payments toward one portion than the other.

Offset accounts
Some mortgages offer an offset account linked to the loan. Money held in the account may reduce the balance used to calculate mortgage interest while keeping your savings accessible.

An offset account and an extra mortgage payment are not exactly the same, so compare the features, fees and accessibility of your particular loan before deciding which approach suits you.

Check Your Loan Terms First

Before increasing your repayments or making a large lump-sum payment, check with your lender for:

Extra repayment limits
Prepayment or early repayment fees
Fixed-rate restrictions
Redraw availability and conditions
Offset account features
How additional payments are applied to your loan

If you're considering changing your mortgage, use our Mortgage Refinance Calculator to compare your current loan with a potential replacement.

Practical Strategies to Make Extra Mortgage Payments

If you want to pay off your mortgage faster, you don't necessarily need to make a large extra payment. Small, consistent increases can reduce your loan balance sooner and potentially lower the total interest you pay.

Increase your regular payment
Consider paying slightly more than your required mortgage payment. Even a relatively small additional amount each month can make a meaningful difference when continued over many years.

Use windfalls or tax refunds
If you receive a tax refund, bonus or other unexpected income, you could choose to put some of it toward your mortgage as a lump-sum payment. Check your loan terms first to make sure additional repayments are allowed without fees or penalties.

Put part of a pay rise toward your mortgage
When your income increases, consider directing part of the additional take-home pay toward your mortgage. This allows you to increase repayments without making a large immediate change to your existing budget.

Make lump-sum payments when you can
Bonuses, inheritances or proceeds from selling assets could potentially be used to reduce your mortgage principal. Even occasional additional payments can reduce the amount of interest charged over the remaining life of the loan.

Round up your mortgage payment
If your required monthly payment is $2,847, for example, you might choose to pay $3,000 instead. That additional $153 per month goes toward reducing your mortgage balance faster, subject to your lender's repayment rules.

Consider more frequent payments carefully
Some borrowers choose weekly or fortnightly payments rather than monthly payments. This can help you pay more over the course of a year if the payment structure actually results in additional repayments. Check how your lender calculates weekly or fortnightly payments before assuming this strategy will reduce your loan faster.

Small Extra Payments Can Add Up

You don't necessarily need to find hundreds of dollars every month. Try different amounts in the Extra Mortgage Payments Calculator — such as $50, $100, $200 or $500 per month — to see how each amount could affect your estimated interest and payoff time.

Important: Before making additional payments, check whether your mortgage has repayment limits, prepayment penalties, early repayment charges or other restrictions.

Offset Account vs Extra Mortgage Payments — Which Is Better?

Both an offset account and extra mortgage payments can potentially reduce the interest you pay, but they work differently. Which option is better depends on your mortgage, lender and how much access you want to keep to your money.

How an offset account works
An offset account is a bank account linked to an eligible mortgage. Money held in the account reduces the portion of your loan balance used to calculate interest.

For example, if your mortgage balance is $600,000 and you have $50,000 in a 100% offset account, interest may be calculated on $550,000 instead.

One of the main advantages is accessibility. Your money generally remains available for everyday spending or emergencies while still helping reduce mortgage interest.

How extra mortgage payments work
Extra payments reduce your outstanding mortgage balance beyond your required repayments. A lower balance generally means less interest is charged and may help you repay the loan sooner.

Accessing money you have already paid into the mortgage depends on your loan features. Some mortgages offer a redraw facility, while others may restrict access or charge fees.

Which option is better?
An offset account may be useful if you want to reduce interest while keeping your savings accessible. Extra repayments may suit you if your priority is reducing your mortgage balance and you are comfortable having less immediate access to that money.

The financial result can also depend on your loan's interest rate, offset-account fees, whether the account provides a full or partial offset, redraw conditions and other lender rules.

You May Be Able to Use Both

Depending on your mortgage, you don't necessarily have to choose only one strategy. Some borrowers keep emergency savings in an offset account while also making additional mortgage payments when they have money they are unlikely to need.

Before choosing a strategy, check the specific features, fees and conditions of your mortgage.

Want to see how reducing your mortgage balance affects your position? Use our Home Equity Calculator to estimate how much equity you have in your home.

Frequently Asked Questions

1. What is an extra mortgage payment?

An extra mortgage payment is any amount you pay above your required mortgage repayment. The additional amount generally reduces your outstanding loan balance, which can reduce the interest you pay and help you repay your mortgage sooner.

2. How much can extra mortgage payments save me?

The amount you could save depends on your loan balance, interest rate, remaining loan term and how much extra you pay. Even relatively small regular payments can make a significant difference over a long mortgage term. Use the Extra Mortgage Payments Calculator above to estimate your potential savings.

3. Is it better to make extra mortgage payments monthly or as a lump sum?

Both can reduce your mortgage balance. Regular monthly extra payments provide consistent reductions, while a lump-sum payment reduces your balance immediately. The better option depends on your finances and your mortgage terms.

4. Can extra payments help me pay off my mortgage faster?

Yes. Paying more than your required repayment reduces your mortgage balance faster. This can shorten your loan term because less of your future payments needs to go toward interest.

5. Should I make extra mortgage payments or use an offset account?

It depends on your mortgage and financial priorities. Extra repayments reduce your loan balance, while an eligible offset account can reduce the balance used to calculate interest while generally keeping your money accessible. Check the fees, features and conditions of both options before deciding.

6. Can I make unlimited extra payments on my mortgage?

Not always. Some mortgages allow substantial or unlimited additional repayments, while others impose limits or may charge fees or penalties, particularly during fixed-rate periods. Check your mortgage agreement or contact your lender before making large additional payments.

7. Is it better to pay extra on my mortgage or invest the money?

There is no single answer. Paying down your mortgage can reduce interest costs and debt, while investing may offer the potential for higher long-term returns but involves investment risk. Your decision should consider your interest rate, financial goals, emergency savings, investment timeframe and risk tolerance.

8. How accurate is the Extra Mortgage Payments Calculator?

The calculator provides an estimate based on the loan amount, interest rate, loan term and extra payment you enter. Actual results may differ because of lender calculation methods, repayment frequency, changing interest rates, fees, loan features and how additional payments are applied.

Start Paying Off Your Mortgage Sooner

Making extra mortgage payments can reduce your outstanding balance, lower the amount of interest you pay over time, and potentially help you become mortgage-free sooner.

Whether you start with an extra $50, $100 or $200 a month, or make an occasional lump-sum payment, consistent extra repayments can make a meaningful difference over the life of your loan.

Use the Extra Mortgage Payments Calculator above to test different amounts and see how they could affect your estimated interest costs and mortgage payoff time.

Once you know your numbers, explore our Amortization Calculator to see how your mortgage balance, principal and interest could change throughout the life of your loan.

Remember: Check your mortgage terms before making additional repayments, as some loans may have repayment limits, fees or other restrictions.