Monthly payment, true cost (comparison rate), fixed or variable rate risk and how much you can afford, with the rules that apply in Australia.
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For a mortgage of 600,000 AUD over 30 years at 6.5%, the monthly payment is about 3,792.41 AUD. Change the amount, term and rate in the calculator above to see your own payment.
The comparison rate includes fees and required costs on top of interest. In our example with typical fees the comparison rate is 6.51% while the nominal rate is 6.5%. Compare loans by the comparison rate and by the total amount you repay.
Most Australian home loans are variable and move with the RBA cash rate, 4.60% in October 2026. Fixed periods of 1 to 5 years are available, but rates usually revert to variable afterwards. If rates rose by 2 points, the payment in our example would go up to 4,613.48 AUD. A fixed rate protects you from that risk, a variable rate can be cheaper when rates fall.
Lenders must test whether you could pay at your rate plus 3 points (the APRA buffer) and still cover your living expenses. They also look at debt to income: above 6 times income is considered high. The calculator applies the 3 point buffer when you enter your gross monthly income.
Most Australian home loans have a variable rate that follows the RBA cash rate. Lenders must show a comparison rate next to the advertised rate. It includes most fees and charges, but it is calculated on a standard loan of 150,000 AUD over 25 years, so it can understate the cost of small loans and overstate it for large ones.
The nominal interest rate only covers interest. The comparison rate adds the fees and costs you must pay to get the loan, such as processing fees, account fees and required insurance, and turns everything into one yearly percentage. Two loans with the same interest rate can have very different comparison rate. When you compare offers for the same amount and term, the lower comparison rate is usually the cheaper loan.
A fixed rate keeps your payment the same for an agreed period, so you know exactly what you pay. A variable rate is a reference rate (for example Euribor) plus the bank's margin. It is often lower at the start, but your payment rises when the reference rate rises. Use the stress test above to see your payment if rates go up by 1, 2 or 3 points, and only choose variable if you could still pay that.
With equal payments (annuity) the monthly amount stays the same, and at the start most of it is interest. With equal principal the first payments are higher but fall every month, and you pay less interest in total. Switch the repayment option in the calculator to see the difference.
Look beyond the monthly payment. Add up interest, upfront fees, monthly account and insurance costs, valuation and notary costs. A longer term lowers the payment but increases the total interest a lot. The line "cost per 100 borrowed" shows how much you pay for every 100 you borrow.
Paying off part of the loan early saves interest. Many countries limit what banks may charge for it, and variable-rate loans can often be repaid without a fee. Read the early repayment clause before you sign.
Typical mortgage at today's average rate, equal monthly payments, without fees. Interest rate: 6.5%.
| Amount | Term (years) | Monthly payment | Total interest |
|---|---|---|---|
| 400,000 AUD | 30 | 2,528.27 AUD | 510,178 AUD |
| 600,000 AUD | 30 | 3,792.41 AUD | 765,267 AUD |
| 800,000 AUD | 30 | 5,056.54 AUD | 1,020,356 AUD |
Variable-rate home loans can be repaid early at any time without a break fee. On a fixed loan you may pay a break cost if rates have fallen since you fixed, and extra repayments are often limited to about 10,000 AUD a year.
In October 2026 variable owner-occupier home loans in Australia average about 6.5%, with the best offers below 6%. Fixed rates for 2 to 3 years are similar. Personal loans average about 9.24%.
No. It is an educational calculator. Your bank sets the final rate and costs. Use the results to understand and compare offers, and ask for the official pre-contract information before signing.
This page is educational. Rates are examples based on central bank statistics and published offers in October 2026, and your bank will price your loan individually. Always compare the official offer document (ESIS or standard information form) before you sign.