Why use a mortgage calculator?
While it's not too difficult to understand how a home loan works, calculating different aspects of one involves applying different mathematical formulas. Unless you're an accountant or conveyancer who really loves doing these calculations, working out the answers for yourself is neither convenient nor an efficient use of your time.
The complexity of these calculations increases when you start comparing multiple home loans and weighing up how different strategies will impact your loan repayments, loan term, and more. For most people, it's far more practical to use a home loan calculator to get a quick estimate rather than go through the stress of working it out for themselves.
The purpose of most home loan calculators is to help you choose the most affordable home loan or help you manage your existing loan more effectively. The estimates you get from using a mortgage calculator will help support the decisions you make, no matter where you are in the process.
How to use our home loan calculators
Each of our home loan calculators is completely free and simple to use - all you need to do input the relevant information, and your results will generate right before your eyes. Each mortgage calculator will require different information from you, but most will ask for basic loan details, including:
- Loan Amount
- Loan Term
- Interest Rate
- Repayment Frequency
- Loan Fee
For inputs like repayment frequency, you'll need to select an option from a drop-down box (monthly, weekly, fortnightly etc.) The calculation takes place automatically when you enter your details, so you won't need to hit any button to get a result.
How accurate are the results?
The home loan calculators accessible from this page are designed only to provide you with an estimate. Whether you're trying to learn how much you can save by refinancing your mortgage or you want to see how much quicker you can repay your loan by making extra repayments, the answers you get should only be used as an indicator to help inform your next move.
Banks and financial lenders vary greatly in how they market and manage their home loan products. Because of the unique policies, fees, and charges that come with different home loan products, a calculator can't give you a precise answer.
To standardise results, each calculator operates on a series of assumptions. For example, each calculator assumes that a year is counted as 364 days, while the specific lender you borrow from may count a year as 365 or 366 days.
The more your specific circumstances contradict the calculator's assumption; the less accurate your results will be. This is why you need to make sure you understand the specifics of your home loan and your lender's policies so that you don't accidentally misuse a calculator or misinterpret the results.
Factors that can influence the accuracy of results include:
- Whether your home loan has a fixed or variable interest rate.
- Irregular fees or other loan charges.
- Using a loan to purchase an investment property.
- Whether you have lenders mortgage insurance.
- Your credit score.