How much are repayments on a $500K mortgage?

At a 6.5% interest rate over 30 years, monthly repayments on a $500,000 mortgage are approximately $3,160. Fortnightly repayments would be around $1,457 and weekly repayments around $729. Paying fortnightly or weekly instead of monthly can save thousands in interest over the life of the loan because you effectively make extra repayments each year.

Should I pay my mortgage fortnightly or monthly?

Paying fortnightly is generally better than monthly. With monthly repayments you make 12 payments per year, but with fortnightly repayments you make 26 half-payments — equivalent to 13 monthly payments per year. That extra payment goes directly to reducing your principal, which can shave years off your loan and save tens of thousands in interest. For a $500,000 loan at 6.5% over 30 years, switching from monthly to fortnightly repayments can save over $60,000 in interest and reduce the loan term by approximately 4 years.

How much do extra repayments save on a mortgage?

Extra repayments can dramatically reduce the total interest paid and shorten your loan term. For example, paying an extra $200 per month on a $500,000 loan at 6.5% over 30 years could save you over $100,000 in interest and cut approximately 5 years off your loan. Even small additional amounts — such as $50 per week — add up to significant savings over the life of a mortgage. Most variable rate loans in Australia allow unlimited extra repayments without penalty.

Mortgage Repayment Calculator

Enter your loan amount, interest rate, and term to calculate your mortgage repayments. Compare monthly, fortnightly, and weekly schedules and see how extra repayments reduce your total interest and loan term.

Last verified: 1 July 2025

How are Australian mortgage repayments calculated?

Australian home loans use standard amortisation: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is principal, r is the monthly rate, and n is the total number of monthly payments. Variable and fixed loans in Australia are almost always monthly compounding. Fortnightly and weekly schedules typically divide the monthly amount, making 26 or 52 payments — roughly one extra monthly payment per year. Source: ASIC MoneySmart; RBA.

Worked example. A $500,000 loan at 6.2% over 30 years costs ~$3,063/month, total interest about $602,700. Switching to fortnightly (half the monthly amount every 2 weeks) saves roughly $55,000 in interest and trims ~4 years off the loan. Adding $200/ month in extras saves a further ~$90,000.

Frequently asked questions

How are mortgage repayments calculated in Australia?

Australian mortgage repayments are calculated using the standard loan amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the total number of monthly payments. Most AU home loans use monthly compounding.

How much do extra repayments save on a $600,000 mortgage?

On a $600,000 home loan at 6.2% over 30 years, standard repayments total about $724,000 in interest. Adding $200 per month in extra repayments saves roughly $130,000 in interest and cuts six years off the loan term. Numbers vary with rate and term.

What is an offset account and how does it work?

A mortgage offset account is a transaction account linked to your home loan. Its balance is offset against your loan principal daily, reducing the interest charged. $20,000 offset on a $500,000 loan means you pay interest on $480,000 — effectively earning your mortgage rate, tax-free.

Should I choose principal-and-interest or interest-only?

Principal-and-interest pays down the loan balance and is cheaper over the life of the loan. Interest-only is common for investment properties (to maximise tax deductions) and short-term cash-flow needs. Owner-occupiers almost always benefit more from principal-and-interest.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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