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Home Loan Calculator

Jacaranda Team

Jacaranda Team

June 22, 20206 minute read
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Want to know how to calculate your mortgage repayments? 

Purchasing a home, whether it be your first or your tenth, is an exciting experience. But like most things in life, it comes with its many challenges. There are so many factors you need to take into consideration. One of those is finding and taking out a home loan that suits your circumstances and budget best. A home loan, also referred to as a mortgage, is a loan from a bank or other financial institution to buy, rebuild, refinance, or renovate a residential property. A home loan calculator is a handy tool that you can use when doing your research for home loans to help you make an informed decision. 

On this page:

    This simple Jacaranda guide will go over some important details about home loan calculators. Find out how they work and what resources you can use to estimate your repayments. 

    What is a home loan calculator? 

    A home loan calculator is an online tool that can help you estimate what your mortgage repayments might be and explore options that may suit your needs. Though this might be its primary purpose, it can also assist in a number of other ways. This includes helping you work out how much you can borrow and how you can pay off your home loan sooner. 

    Where can I find a home loan calculator? 

    A quick Google search for ‘home loan calculator’ will show you a number of results. Most of these will be from the big banks, i.e Commonwealth, Westpac, NAB, ANZ etc. Most, if not all, financial institutions who offer home loans will have a home loan calculator on their website. Typically these can be quite handy for calculating your total and monthly repayments. However, if you’re looking to find out more, such as how much you can borrow and how to pay off your loan quicker, the Moneysmart website might be your best bet. 

    What will I need to use a home loan calculator for? 

    Home loans can get complicated. A lot of people don’t understand there’s more to home loans than just the principal amount and interest. There are many other factors that can contribute to the overall cost of the loan. Below we’ve given a brief description of the features you can expect to have included in your mortgage. You’ll also most likely need to know these details to use a home loan calculator

    Principal amount

    This is a nice simple one to start off with. The principal amount on a home loan is the amount you borrow from your lender. 

    Interest rate 

    Interest is money that’s charged on top of the principal amount. This is expressed as a percentage of the principal amount and is added to your monthly repayments. Think of it is as a small fee charged by your lender in exchange for providing you with a loan. Home loan interest rates vary from lender to lender, so it’s important you do your research to find one that’s affordable for you. 

    Before you start calculating home loan repayments, you should also familiarise yourself with the different types of interest rates. You’ll have a choice of fixed and variable interest rates and both have their pros and cons. Fixed interest rates refer to an agreed-upon rate that will not change throughout the course of your loan term (repayment period). Variable interest rates will fluctuate based on the market. They’re loosely based on what the Reserve bank of Australia (RBA) set their interest rates as. 

    Repayment term 

    Your loan term refers to the length of time you’ll repay your loan. Because home loans are typically very large amounts, home loans can span over a period of 25-30 years. However, this will vary from lender to lender. The shorter your loan term, the less interest you will pay overall, but you can expect your monthly repayment to be larger. 

    Deciding on a loan term really depends on your budget. Of course, you want to pay as little interest as possible, but it’s important that you don’t over-commit yourself. If your monthly repayments are too high you could be left in financial difficulty. A home loan calculator, however, will give you a better understanding of what loan term will suit your budget. 

    Repayment frequency 

    Determining the frequency of your repayments may be an option available to you. Typically repayments are set on a monthly basis. However, some lenders may also allow you to make payments on a weekly, fortnightly, quarterly or yearly basis. 


    Home loans also come with a number of fees. It’s important you’re aware of the fees on your home loan before you sign your contract. This is so you aren’t sprung with any nasty surprises throughout the course of your loan. Below we’ve listed a number of fees that could expect to be attached to your mortgage. Please note, lenders might not charge all of these fees, but it’s important you are aware of them when doing your research. 

    • Application/establishment fee;
    • Property valuation fees;
    • Ongoing fees;
    • Legal fees;
    • Exit fees.

    How does a home loan calculator work? 

    You’ll need to input the above details into a home loan calculator to calculate your regular repayments. To recap, you’ll need to provide how much you want to borrow (principal), interest rate, loan term, repayment frequency, and relevant fees. From there, you should be given an estimate of your repayments and the amount you can expect to pay overall. 

    It’s important to keep note that home loan calculators give you an estimate of what you can expect to pay and aren’t completely accurate. This is because things can change throughout the course of your loan. For instance, if you are unable to work and need to put your repayments on hold, your loan term will be extended. This will, in turn, increase the amount of interest you pay. 

    Personal loans at your fingertips

    Need a bit of cash to finance your home renovation? If you’re not looking to take out a mortgage right this minute, you could apply for a personal loan with Jacaranda in minutes. We offer three types of personal loans ranging from $1,000 to $15,000 over a span of 12-36 months:

    Loan type Amount Loan term
    Small unsecured loans $1,000 to $2,000 12 months
    Medium secured loans $2,100 to $4,600 13 to 36 months
    Large secured loans $5,000 to $15,000 13 to 36 months

    When you submit an application with Jacaranda, we will do our best to get back to you with an outcome in just 60 minutes.* No long wait times, no trips to the bank and definitely no printing. Apply 100% online today! 

    You can get in touch by visiting our contact page or calling us on 1300 189 823. 

    Found your dream car? We now offer car loans as well! Apply online for up to $35,000 today. 

    *If you apply during AEST business hours and we don’t require any additional documents from you.

    Copyright © www.jacarandafinance.com.au Jacaranda Finance Pty Ltd ® ABN 53 162 078 195 Australian Credit Licence 456 404, Pawnbroking License Number 4221738. The information on this web-page is general information and does not take into account your objectives, financial situation or needs. Information provided on this website is general in nature and does not constitute financial advice.

    Jacaranda Team
    Jacaranda Team

    Written by Jacaranda Team

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