An extra payment can reduce payoff time and interest if your bank applies it to principal and the other assumptions hold. That treatment is not universal: some facilities provide redraw or offset features, some treat money as an advance payment, and variable rates change future instalments. Use this page for a comparison, then verify it against the facility letter and a current bank quotation.
Try it with your own numbers
Enter your current outstanding balance, interest rate, remaining tenure, and how much extra you could pay each month. Nothing is stored.
How to read the result
The calculator shows an estimated monthly instalment, then compares estimated payoff time and interest under a fixed-rate amortisation model. It assumes the same rate throughout, on-time monthly payments and immediate principal reduction. It excludes product-specific fees, redraw, offset balances, rate changes and bank allocation rules.
Extra payment vs early settlement
There are two ways to cut your interest bill:
- Extra monthly payment — the facility remains open. Ask the bank whether the amount reduces principal, offsets the balance, remains redrawable or is treated as an advance instalment.
- Full settlement — the bank issues a dated settlement quotation and the facility closes after the required amount and process are completed. Charges, notice and rebates depend on the documents.
Who this suits — and who should pause
Consider it only after checking liquidity, other debts, near-term spending needs, facility terms and alternatives. Pause if the payment would leave you without an adequate cash buffer or if you do not yet have written confirmation of how the bank will treat it.
Before you decide — quick checklist
- Request the relevant facility clauses and a current written settlement quotation.
- Ask how extra payments are allocated and whether access to the money is restricted.
- Keep an emergency reserve appropriate to your own obligations and income stability.
- Compare other debt costs and alternatives on a like-for-like, after-tax and risk-aware basis.
- For a flexi or offset-style facility, confirm the redraw access, fees and interest calculation with the bank.
Figures are estimates for illustration under simplified fixed-rate assumptions. They are not a settlement quotation, personalised financial advice or a promise of savings. Your bank's documents and calculations govern. If you want help organising the comparison questions, message CK; obtain the actual figures from the bank before deciding.