Mortgage Calculator
Use this free mortgage calculator to estimate your monthly home loan repayments, total interest cost, and payoff date for any Australian property. Whether you’re a first home buyer, upgrading, or investing, understanding your repayment obligations is the first step to making confident property decisions in 2026.
How to Use This Mortgage Calculator
Our mortgage calculator is designed for simplicity and accuracy. Follow these five steps to get instant results:
- Enter the property price you’re considering purchasing (e.g., $800,000)
- Enter your deposit amount or select your Loan-to-Value Ratio (LVR). A 20% deposit avoids Lenders Mortgage Insurance.
- Enter the current interest rate. Check the Reserve Bank of Australia official cash rate for the latest benchmark, or use typical bank rates of 4.2% to 5.2%.
- Select your loan term, typically 15, 20, 25, or 30 years. Shorter terms mean higher monthly payments but less total interest.
- Review your results: monthly repayment amount, total interest paid over the life of the loan, and your total cost of ownership.
Understanding Key Mortgage Calculator Metrics
Loan-to-Value Ratio (LVR)
Your LVR is the percentage of the property price you’re borrowing. If you have less than a 20% deposit, your LVR exceeds 80%, and you’ll typically pay Lenders Mortgage Insurance (LMI). LMI can add $10,000 to $50,000 to your loan, depending on the loan size and LVR. For more information, visit lenders mortgage insurance requirements on MoneySmart.
Interest Rates in 2026
As of early 2026, the RBA cash rate sits at 4.35%. Fixed home loan rates typically range from 4.5% to 5.2%, while variable rates range from 4.2% to 5.0%. Your actual rate depends on your deposit size, credit history, and lender. Consider exploring fixed vs variable loan rates to decide which loan type suits your situation.
Loan Serviceability and Approval
Lenders don’t just assess your ability to repay at the current interest rate. They apply a serviceability buffer, testing whether you can still afford repayments if rates rise to around 7%. This protects both you and the lender from rate shocks. If you’re unsure how much you can borrow, use our borrowing power calculator to check your approval chances before applying.
Mortgage Calculator Example
Here’s a worked example to illustrate how the mortgage calculator functions:
Property Price: $800,000
Deposit: $200,000 (25% deposit, LVR 75%)
Loan Amount: $600,000
Interest Rate: 4.5% per annum
Loan Term: 30 years
Monthly Repayment: $3,053
Total Interest Paid: $498,800
Total Amount Repaid: $1,098,800
This example shows that over 30 years, you’ll pay nearly as much in interest as the original loan amount. Reducing your loan term to 25 or 20 years, or making extra repayments, can save tens of thousands in interest.
Benefits of Using a Mortgage Calculator Early
Running mortgage scenarios before you start house hunting helps you:
- Set a realistic budget and avoid overcommitting
- Compare different loan structures (interest-only vs principal and interest)
- Understand the long-term cost of borrowing
- Prepare for lender serviceability tests
- Make informed decisions about deposit size and loan term
Mortgage Strategy Tips for 2026
Interest rates remain elevated in 2026, so strategic planning is essential. Consider whether a mortgage broker vs bank comparison might help you secure a better rate. Brokers often have access to exclusive deals and can negotiate on your behalf.
If you’re a first-time buyer, review the first home buyer market insights to understand government grants, stamp duty concessions, and market conditions in your state.
Next Steps After Using the Mortgage Calculator
Once you’ve modelled your scenario, the next step is to confirm your borrowing power and get pre-approval. Pre-approval gives you confidence when making offers and shows sellers you’re a serious buyer.
Ready to move forward? Check how much you can borrow using our borrowing power calculator, or speak with a mortgage broker to discuss your options.
Speak With a Mortgage Broker
Our mortgage brokers help you compare over 40 lenders, negotiate better rates, and guide you through the approval process. Get in touch today for a no-obligation consultation.
Related Posts
- fixed vs variable loan rates
- mortgage broker vs bank comparison
- first home buyer market insights
- cashflow calculator
- borrowing power
- mortgage calculator
- LMI
- mortgage types
Further Reading
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