Lump Sum Repayment Calculator

Use our calculator to find out how much you can save in interest and time by making one-off payments on your home loan.

How does a lump sum repayment benefit you?

A lump sum repayment means making a large chunk of your repayment at once, in addition to your regular repayments. Unlike what you might assume, a lump sum payment, particularly in the early years of your loan, can have a big effect on the total interest paid on the loan.

When you make such payments, it directly reduces your principal loan amount. Because interest is calculated on the remaining balance, you’ll pay less interest each month from that point onwards. This automatically reduces your loan term by years without increasing your ongoing repayments and saves you tens of thousands of dollars.

In addition, by paying off a large portion of your principal early, you can also build equity in your home sooner, providing more flexibility for refinancing and selling later on.

How to use the calculator?

Enter your details, from the loan amount, your interest rate, the loan term, to how often you need to make repayments. Next, you need the lump sum amount and an estimate of when you’ll be depositing the chunk. The calculator displays your results with the monthly repayments and your remaining balance after some years of regular repayment. To compare with that, our calculator provides the time and interest that could be saved when lump sum payments are made.