Finance Calculators
Mortgage Calculator
Calculate your monthly mortgage payments including principal, interest, and the impact of your down payment. See how much home you can afford.
Formula Used
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = loan amount (home price minus down payment), r = monthly interest rate, n = total months.
About This Calculator
What It Does
Calculate your monthly mortgage payment based on the home price, your down payment, the loan term, and the interest rate. See the loan amount, total interest, and total repayment over the life of the loan. This calculator covers principal and interest only — it does not include property taxes, homeowners insurance, HOA fees, or mortgage insurance (PMI). Use it to understand how your down payment size, loan term, and interest rate interact. A larger down payment means a smaller loan and less interest. A shorter term means higher payments but dramatically less total interest.
Worked Example
Example 1 — Standard: A A$700,000 home with A$140,000 down (20%) leaves a A$560,000 loan. Over 30 years at 6.0%: monthly payment ≈ A$3,358. Total interest ≈ A$648,900. Example 2 — 20-year term: Same A$560,000 at 6.0% over 20 years: monthly payment ≈ A$4,013. Total interest ≈ A$403,100. Saving over A$245,000 in interest. Example 3 — Larger down payment: A A$700,000 home with A$210,000 down (30%) leaves a A$490,000 loan at 6.0% over 30 years: monthly payment ≈ A$2,939. Total interest ≈ A$568,000.
Real-World Usage
Home buyers use this to determine their price range before starting their search. Compare fixed and variable rate scenarios. See how a 15-year vs 30-year term fits your budget. Real estate agents use it to illustrate affordability. Refinancing decisions: compare current loan terms against a new offer. Use it to plan — a larger down payment reduces not just your monthly payment but also the total interest by tens of thousands.
Local Context
Australian mortgages are typically variable rate (60% of market), with 1-5 year fixed terms available. Average variable rates range 6-9%. LVR above 80% requires Lenders Mortgage Insurance (LMI). Stamp duty varies by state (2-5%). No tax deduction for primary residence interest, but investment property interest is deductible. APRA regulates lending standards.
Sources and Methodology
Mortgage estimates use standard amortization formulas plus configured country-specific assumptions for taxes, fees, insurance, or purchase costs where available. Check final affordability, fees, and eligibility with lenders and official housing, tax, or central bank sources for your jurisdiction.
Last reviewed: May 2026.
This is an estimate only and does not constitute a loan offer or commitment. Actual rates, terms, and payments depend on lender policies, credit score, property location, and other factors.
Frequently Asked Questions
How much deposit do I need in Australia?
Most lenders require at least 5-10% deposit. If your deposit is below 20%, you must pay Lenders Mortgage Insurance (LMI), which protects the lender if you default.
Should I choose fixed or variable rate?
Variable rates offer flexibility and features like offset accounts and extra repayments. Fixed rates offer payment certainty. About 60% of Australian mortgages are variable rate.
What is stamp duty?
Stamp duty is a state government tax on property purchases. Rates vary by state from 2-5% of the purchase price. First-home buyers may qualify for concessions or exemptions.