Loan Calculator Help
Understand how to use our loan calculator to
maximize your savings.
Getting Started
Our loan calculator is designed to help you understand your repayments and how strategies like extra repayments and offset accounts can save you thousands in interest.
1. Basic Loan Details
These are the foundational numbers for your loan calculation.
- Interest Rate: The annual interest rate charged by your lender.
- Loan Amount: The total amount you are borrowing or the current balance of your loan.
- Loan Term: How long you have to pay back the loan (usually 25-30 years for mortgages).
- Bank Repayment Cycle: How often your bank requires a payment (Weekly, Fortnightly, or Monthly).
Core loan configuration
2. Advanced Options: Offset & Extra Payments
This is where you can see the real power of financial planning.
- Offset Balance: Money kept in a linked savings account that reduces the interest you pay on your loan.
- Offset Cashflow: Track regular deposits (like salary) and expenses (living costs) to see their long-term impact.
- Planned Repayments: Specify your actual repayment amount and frequency if you plan to pay more than the minimum.
- Lumpsum Payments: One-off or recurring large payments that significantly reduce your interest over time.
Configuring offsets and extra repayments
Pro Tip: Why use an Offset?
Interest is calculated on your (Loan Balance - Offset Balance). By keeping more money in your offset, you pay less interest every day, which means more of your repayment goes towards paying off the principal!
3. Understanding Your Results
After clicking "Calculate", you'll see a breakdown comparing your original loan with your new strategy.
- Expected Total Interest: What you would have paid without any extra efforts.
- Actual Interest Paid: The interest you'll pay given your offset balance and extra repayments.
- Total Interest Saved: The direct financial profit of your savings strategy.
- Debt-free In: The actual time it will take to reach a zero balance.
Standard Result
Optimized Result
4. Interest Milestones
Track key moments in your journey toward financial freedom.
- Lower Interest Period: The date when your daily interest drops below a significant threshold.
- Zero Interest Period: The moment your offset balance matches your loan balance, making the loan interest-free.
Projecting critical debt-reduction dates
5. Visualizing Your Progress
Balance Over Time
See how fast your debt drops with extra payments compared to the standard schedule.
Interest vs Principal
Understand what portion of your payments goes toward the bank's interest versus your equity.
Detailed Breakdown
View an exact schedule of every payment, interest charge, and balance reduction.