Extra Repayment Calculator

Extra Repayment Calculator

If you make additional repayments on your home loan, it can significantly reduce the amount of interest you pay as well as shorten the loan term. Understanding the impact of these repayments, making extra repayments and what home loan repayment is, will require either a reliable tool, contacting a mortgage professional or some maths. At Kaleido, we can offer you dedicated support and can offer you a myriad of information regarding mortgages, repayments and more. Home loan extra repayment calculators are invaluable and we can offer them to you. These calculators provide clear and precise information which we will share with you, as well as any additional benefits or functionality. It’s time for you to make an informed financial decision, let us help. At Kaleido, we strive to help you make your dreams a reality and offer to help you learn more about the extra mortgage repayments calculator, as well as fixed rate loans or variable rate home loans.

Extra repayment calculator ANZ

Dedicated banks such as ANZ have systems in place which can make 30 years of repayment not feel like a daunting prospect and that is especially the case because extra repayments also reduce the length of your loan. Certain strategies can reduce the loan period and additionally save you thousands of dollars in interest. By increasing your monthly repayments, you cut interest charged on your loan and you reduce the time it would take to completely pay off your mortgage. Here is an example of how this sort of home loan account repayment calculator would work:

• You borrow $500,000 to your loan account.
• Loan period is 30 years.
• Interest rate is 5%.
• The minimum required repayment is $2,684 per month.
• Interest paid for a 30-year duration would be around $492,000.

In another scenario:

• You have decided to have extra loan repayments of $3,000 per month.
• You can save over $100,000 in interest over the life of the loan with extra repayments on your mortgage.
• With the repayment you make each month, you will pay off your loan in less than 25 years.

Personal Loan Extra Repayment Calculator

This sort of calculator is designed to help you see all the benefits you’d have from making additional payments on your personal loan. In this calculator, you’d usually be able to input details such as loan term, loan amount, interest rate as well as extra amount of repayment you plan on paying. Here are a few factors to keep in mind that showcase how it all works:

1. Enter Loan Details: You start off by entering the original loan amount, followed by the annual interest rate and finally adding the remaining term of your loan.
2. Specify Extra Repayments: Here you write the additional amount you plan to pay. More intricate calculators let you select, weekly, fortnightly, monthly or as a lump sum.
3. Calculate: Finally, once all data is in, the calculator will then show you how much time and money you could save by making these extra payments.

Here’s a simple example that can help you understand. Let’s say you took a personal $20,000 loan which has an interest of 10% over ten years. Then you decide to pay an additional $50 each month. A rough estimate of repayment would be around $260 and with the additional repayment, it would be around $310. With just an additional $50 each month, you save almost $3100 on interest and 2 years and 4 months on your loan. Do keep in mind that these are rough estimates and for a more accurate calculation feel free to reach out to us at Kaleido.

Lump Sum and Extra Repayment Calculator

Both extra and lump sum payment calculators are excellent tools for all who want to make a one-time large payment in addition to regular extra repayments. This sort of calculator is on the more complex side of things, but it allows you to see how what combined effect is for both lump sum payment and regular additional payments. Here’s a simple way how you can use it:

1. Enter Basic Loan Information: Usually, you will need to provide details about your current loan amount, remaining term and agreed-upon interest rate.
2. Include Lump Sum Payment: Next, you’ll need to enter the amount of the lump sum payment you plan to make.
3. Specify Regular Extra Payments: Finally, add additional details such as regular additional payments, their amount and frequency.
4. Calculate and Review: Once all relevant data has been entered, the calculator should show how these combined payments can have an impact on your loan and this should include both interest savings and reduced loan term.

What Happens If I Miss an Extra Repayment?

Since we’ve already discussed how important extra repayments can be, what happens if you miss one? Well, usually, the implications of missing an extra repayment can be rather small and nowhere near as dangerous as missing a regularly scheduled payment. However, there are a few things you should keep in mind when using a lump sum repayment calculator:

1. No Penalties on Most Loans: Most lenders wouldn’t impose any penalties for missing an extra repayment because you are making these payments voluntarily.
2. Interest Savings Impacted: Missing one or several extra repayments will reduce the overall interest savings and they will also extend your loan term.
3. Review Your Financial Plan: If you know that you won’t be able to make additional repayments, maybe it’s time to review your current financial plan or talk to a professional about it.

Do keep in mind that a vital step is checking your mortgage contract and getting in touch with your lender or professional broker. You must understand all financial information, terms, conditions and everything related to missing extra repayments. That’s why we at Kaleido offer you a solution, try our home loan extra repayments’ calculator to find out. Enter your current loan details, or proposed loan details if you don’t already have a mortgage. You can also nominate when you will start your increased repayment.

Extra Home Loan Repayments with Variable Home Loans

If you want to pay off your home loan that has a variable interest rate, you can actually benefit more and save by making extra repayments. You can see this by using a variable loan repayment calculator since interest rates on these loans can fluctuate with the current market condition. Making an additional repayment could significantly reduce the principal amount owed and eventually lead to a much lower interest charged over time. This means that you can potentially pay off your loan much faster and save on interest.