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Loan term calculator
Compare home loan terms in Australia
Any whole year from 1–40. Up to 8 terms at once.
Click a chart bar to set baseline, or use this dropdown.
Total interest by term
Hover or tap a bar · click to set baseline
- 15 yrs
- 20 yrs
- 25 yrs
- 30 yrs· baseline
- 40 yrs
| Term | Monthly | Total interest | vs baseline monthly | Interest saved vs baseline |
|---|---|---|---|---|
| 15 yearsLowest interest | $5,096 | $317,210 | +$1,460 | $391,738 |
| 20 years | $4,333 | $439,985 | +$697 | $268,963 |
| 25 years | $3,903 | $570,770 | +$267 | $138,178 |
| 30 yearsBaseline | $3,636 | $708,949 | — | — |
| 40 years | $3,343 | $1,004,737 | −$293 | +$295,789 |
Choosing 15 years instead of 30 years
Monthly repayment rises by $1,460 ($5,096/mo vs $3,636/mo), but total interest falls by $391,738 in this model.
Shorter term
Higher monthly repayment, less lifetime interest, own the home sooner if you keep to schedule.
30-year default
Lowest scheduled repayment on paper — useful for cashflow, but more interest if you never pay ahead.
40-year option
Some lenders offer extended terms to reduce instalments; total interest rises sharply. Check product availability.
Unsure which term fits your budget and borrowing capacity? A broker can compare lender policy — not just the calculator maths.
Speak to a brokerGeneral information only. These calculators provide estimates based on the numbers you enter. They do not constitute credit advice, take your full situation into account, or replace a lender's assessment. Fees, eligibility, and actual offers vary. Speak with a broker for guidance tailored to you.
Want a two-term side-by-side only? Simple term compare on the calculator hub.
What this calculator shows
Model 15–40 year terms side by side — monthly repayments and total interest on the same loan — to see what a shorter or longer term really costs.
Monthly repayment and total interest by loan term
Principal-and-interest figures at 6.29% — the same function the calculator above uses, so the published table cannot contradict the tool. Read across for the repayment, then down for the lifetime interest that repayment buys.
| Loan amount | 15 yearsper month / interest | 20 yearsper month / interest | 25 yearsper month / interest | 30 yearsper month / interest | 40 yearsper month / interest |
|---|---|---|---|---|---|
| $500,000 | $4,298$273,644 interest | $3,666$379,914 interest | $3,311$493,216 interest | $3,092$612,978 interest | $2,853$869,348 interest |
| $700,000 | $6,017$383,102 interest | $5,133$531,879 interest | $4,635$690,503 interest | $4,328$858,169 interest | $3,994$1,217,087 interest |
| $900,000 | $7,736$492,559 interest | $6,599$683,845 interest | $5,959$887,789 interest | $5,565$1,103,360 interest | $5,135$1,564,827 interest |
On $700,000, cutting a 30-year term to 25 years costs about $307 extra a month and saves roughly $167,667 in interest. Stretching the same loan to 40 years cheapens the repayment by $334 and adds about $358,918 over the life of the loan. That is the trade the monthly figure on a bank app does not show.
General information only — not a rate quote or credit advice. Figures assume a constant nominal rate, no fees and no offset. Variable loans do not hold a rate for 40 years.
About loan terms in Australia
Why loan term matters more than the rate alone
Two borrowers with the same rate can pay wildly different lifetime interest if one chooses a 25-year term and another stretches to 30 or 40 years. The monthly figure on your bank app is only half the story — the term sets how long interest compounds against the balance.
Refinancing? Watch the term reset trap — a lower rate on a fresh 30-year term can cost more than keeping your remaining term. For payoff levers after you pick a term, try the pay-off-faster playground.
Common questions
Can I get a home loan shorter than 30 years in Australia?
Yes. Most Australian lenders offer principal-and-interest terms from about 5 to 30 years, and some now offer up to 40 years on selected products. A shorter term raises your scheduled repayment but usually cuts total interest paid over the life of the loan. Not every lender offers every term — confirm product availability before you apply.
How much does a 25-year loan save compared with 30 years?
It depends on your loan size and rate. On a $600,000 loan at 6.1% p.a., a 25-year P&I term is roughly $200–$250 more per month than 30 years, but can save around $70,000–$90,000 in total interest in this calculator model. Enter your own numbers above — results are illustrations only.
Is a 40-year home loan worth it?
A 40-year term lowers the monthly repayment compared with 25 or 30 years, which can help serviceability on paper. The trade-off is substantially more lifetime interest. Use this calculator to see the monthly saving versus the total interest cost before choosing a longer term for cashflow reasons.
Does this calculator include fees, offset or package discounts?
No. This tool models standard amortising principal-and-interest repayments from loan amount, rate and term only. Lender fees, offset balances, interest-only periods and assessment-rate buffers are not included. Use your bank statement or speak with a broker for product-specific numbers.
What loan term do most Australian borrowers choose?
Thirty years remains the most common new loan term because it minimises the scheduled repayment. Borrowers focused on paying less interest over time often choose 25 years, or keep a 30-year contract and make extra repayments. There is no single best term — it depends on cashflow, goals and lender policy.
Will a shorter loan term help me borrow more?
Usually the opposite. Lenders assess whether you can afford the contractual repayment at a buffered rate. A shorter term means a higher repayment, which can reduce borrowing capacity even if total interest is lower. Model both term and borrowing power before you lodge.
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Run the numbers on a related tool — then enquire with your scenario mapped out.
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Want these home loan numbers checked against real lenders?
Estimates help orientation — product rules, assessment rates, fees, and offsets change what a home loan actually looks like at submission. As your mortgage broker, Bishnu Adhikari can stress-test what you modelled. Send a short note below, use the full contact form, or call 0400 77 77 55. You reach Bishnu Adhikari, not a queue.
Prefer WhatsApp? Message Azure Home Loans · Full contact form · 0400 77 77 55
Go deeper
Reading after you compare terms
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Construction loans hub
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Construction files fail when contracts, valuations, and draw schedules do not match lender policy — not when the builder is slow alone.
Rates & fixed vs variable hub
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Headline rates matter less than how long you will keep the loan, offset use, and revert rates after any fixed period.
Pay off faster hub
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Cost-of-living pressure has more Australians looking for practical ways to pay down their mortgage sooner — and most online calculators only model one strategy at a time.
Prefer the full index? Resources home
More calculators
Model a single repayment with the mortgage calculator, estimate borrowing power, or open the full calculator toolkit.
Compared the terms — want help choosing a lender?
Call 0400 77 77 55, WhatsApp, or send an enquiry — Bishnu Adhikari replies directly.
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