Principle and Interest Mortgage Repayment Calculator

What Does This Calculator Do ?

This calculator helps you work out what your regular repayments will be based on your loan amount.
The repayment frequency can be changed to monthly, fortnightly or weekly. Calculates both Principal and Interest repayments for a loan term.

What Is Principal and What Is Interest?

The principal of your home loan is the amount of money you borrow from your bank or lender. The interest is what the lender charges you to borrow the money. The interest rate is determined can be determined by the risk of the home loan, the type of loan it is and the security offered.

Principal and Interest Home Loans Benefits 

If you decide to opt for principal and interest repayments on your home loan, this will involve you paying the principal amount (to reduce the loan balance) and the interest at the same time (the cost of the loan to the bank determined by the interest rate). The other option is going for an interest only loan, this will see you only paying the interest owed on your loan with the balance remaining the same, effective for investors who are wanting to keep repayments minimal and rely on capital growth.

The biggest benefit in paying principal and interest is you’ll be reducing your loan and paying it off over the loan term. As you only pay interest on the loans outstanding balance, your repayments become cheaper as your loan balance reduces. This helps create equity in your property to help invest in further property.

Calculator Disclaimer 

  • It does not take into account any possible up-front fees. Only Ongoing fees are used not Upfront or End of loan fees (i.e. discharge costs).
  • Interest rate does not change over the loan term.
  • Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, the interest compounding frequency may not be the same as repayment frequency.
  • It is assumed that a year consists of 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
  • No rounding is done throughout the calculation whereas repayments are rounded to at least the nearest cent in practice. 

Want to find out more about this principal and interest home loan repayment calculator? Contact us on on 02 9121 6247 or submit your scenario online.


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