Generate a full amortisation schedule for any Australian loan. See exactly how each repayment splits between principal and interest, and how extra payments save you thousands.
Extra Repayments (saves interest)
| Standard | With Extra |
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| Period | Date | Interest | Principal | Extra | Balance |
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Amortisation is the process of paying off a loan through regular repayments. Each payment covers interest first, with the remainder reducing the principal balance.
Making extra repayments directly reduces your principal, which reduces the interest calculated in subsequent periods. Even small extra amounts compound significantly over a 25–30 year mortgage — an extra $200/month on a $500,000 loan at 6.25% can save over $90,000 in interest and cut 4+ years from the loan.
An offset account works differently — your savings balance offsets (reduces) the principal on which interest is calculated, but the loan term and repayment remain unchanged unless you refinance. The effective saving can be similar to making extra repayments.
If your loan allows redraw, any extra repayments can be accessed later. This provides flexibility but requires discipline to not redraw unnecessarily.