Calculator

Lump Sum Repayment Calculator

Received a bonus, an inheritance or a tax refund? Paying it off your home loan reduces the balance interest is charged on from that day forward. Enter the amount and your loan details to see roughly how much interest and time a one-off payment could save.

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Use the lump sum repayment calculator

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How to use the lump sum calculator

Enter your loan balance, interest rate and remaining term.
Enter the lump sum and when you'll pay it.
Compare the new term and interest with your current loan.

What the saving depends on

The saving shown assumes the lump sum stays in the loan for the full term, your regular repayments continue at the same amount and your rate doesn't change. Redrawing the money later reduces the saving.

Things to know

A lump sum is not the only option. Putting the same money in an offset account reduces your interest in a similar way and keeps it easier to reach. If you're on a fixed rate, a large lump sum may trigger break costs. Ask your lender first.

Hot Tip: If you might need the money in the next year or two (a car, a renovation, a baby), an offset account is usually the more flexible home for it.

Worked example (illustrative)

A $20,000 bonus is paid into a $500,000 loan with 25 years remaining. The calculator shows the months saved and the interest avoided if the money stays in the loan.

What this calculator assumes

The money is not redrawn later.
The rate stays the same.
Repayments stay at the current amount.

Related guides

Frequently asked questions

Should I use an offset account instead?

An offset account gives the same interest saving while keeping the money accessible. If you might need the funds later, offset can be more flexible than a lump sum repayment. Both options save the same interest on the same balance.

Will my repayments go down after a lump sum?

Usually not automatically. Most lenders keep your repayment the same so the loan is repaid sooner. Some will recalculate repayments on request. If you'd prefer lower repayments for cash flow, ask your lender to recalculate. Keeping repayments the same pays the loan off faster and saves more interest.

Got a number? Let's see what it means for you

A calculator can tell you what the maths says. It can't tell you which lenders would accept your application, how they treat your income or whether a different structure would suit you better. Book a complimentary loan strategy session. We're based in Brisbane and help clients right across Australia, and in most cases you won't pay us a broker fee because we're paid by the lender you choose.

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Prefer to talk? Call (07) 3194 0888.