Real Loan Cost Calculator
The advertised interest rate rarely tells the full story. See the real total cost of a mortgage or consumer loan: what you actually pay back, and how much of that is interest.
Your details
The real cost of this loan, beyond what you borrowed
$580,691
Repayment per week
$692
Repayment per month
$2,998
Repayment per year
$35,973
This calculator assumes a fixed interest rate and standard monthly amortization for the full loan term. It does not account for offset accounts, redraw, extra repayments, refinancing, or changes in rate, and is not financial advice.
How to use this calculator
- 1. Switch between Mortgage and Consumer Loan to load typical starting figures for each.
- 2. Enter the amount you're borrowing, the interest rate, the loan term, and any upfront fees.
- 3. The calculator shows your monthly repayment, total amount repaid, and how much of that is pure interest, plus a year-by-year breakdown of principal versus interest.
FAQ
Why is the 'real cost' higher than the amount I borrowed?
Every loan repayment is split between paying down what you borrowed (principal) and paying the lender for the use of that money (interest). Over a long loan term, especially a mortgage, total interest can add up to a large fraction of, or even more than, the amount you originally borrowed.
Why do early repayments go mostly toward interest?
With standard amortizing loans, interest is calculated on your remaining balance each month. Early on, the balance is largest, so the interest portion of each payment is largest too. As the balance shrinks, more of each fixed repayment goes toward principal.
Does this include offset accounts or extra repayments?
No. This calculator assumes a fixed rate and a standard repayment schedule for the full term. Offset accounts, redraw facilities and extra repayments can all reduce the real cost significantly, so treat this as a baseline comparison, not your exact outcome.
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Fixed vs Variable vs Split Home Loans: Which Should You Choose?
The real trade-offs between fixed, variable and split home loans, the RBA data on the COVID fixed-rate wave, break costs, and which suits which borrower.
Interest-Only vs Principal and Interest: What's the Real Difference?
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Disclaimer
The results provided by this calculator are estimates only, based on the assumptions you enter, and are not a prediction or financial advice. Actual loan costs depend on your lender's specific terms, fees and rate structure. Consider speaking with a licensed financial adviser or mortgage broker before making any borrowing decision.