How to Use a Home Loan Calculator Australia

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If you are searching for a home loan, you have probably wondered how much you can afford with your income. A home loan calculator is a simple tool that will help you plan effectively for the loan repayments due to your loan.


The home loan calculator uses different variables applicable for the loan including the home loan amount, interest rate and repayment period to determine the repayment amount for the loan. The Loan amount is the expected amount for the purchase of your home less any down payments that you will have to pay in cash. The repayment period is the total number of months you intend to repay the loan, while interest is the annual interest rate charged by the bank or financial institution providing you with the home loan, and is expressed as a percentage.


An internet search of home loan calculators will give you numerous sites, that you can use. While the formats and layouts may vary, the underlying mathematical computation does not change, and each calculator will give the same result, provided the inputs remain the same. Some of the sites with home loan calculators available online include,, and


Use a home loan calculator is easy. Each calculator will give you fields for the loan amount, period of repayment and interest rates. Simply key in the different variables into the calculator, and the computation of the expected repayment amount will be displayed. You could try different combinations of loan amounts and repayment periods to estimate your most desired repayment amount, based on your preferences and financial plans.


The home loan calculator should only be used as a general guide and may differ slightly with the computations from your bank or financial institution. This difference may be due to other fees charged by the bank, for instance, insurance or loan application fees. Therefore, it will be important to carefully read the fine print from your bank’s loan offer letter, or ask for an explanation should the difference be significant.