Borrowing Power Calculator

Calculate how much you could save over time by using a redraw
offset facility to pay off your home loan faster.

Methodology:

How to use the personal loan calculator

To use the personal loan calculator, you’ll need to enter some details about your loan. These are explained below:

  • Borrowing Amount —
    The amount of money you are looking to borrow from a lender under a personal loan agreement, including any fees included in the loan.
  • Interest Rate —
    This is the interest rate the lender will apply to your personal loan, and is used to calculate both the total amount of interest you will pay over the loan period and your scheduled repayment amount. Personal loan interest rates can be fixed or variable: If you have a variable rate of interest, you will have difficulty accurately determining your payments over the life of your loan.
  • Loan Term —
    The length of your personal loan as dictated by your loan agreement. The shorter your loan term, the higher your scheduled repayments will be. Your loan term is important as it will allow you to accurately calculate your monthly, fortnightly, or weekly payments through an Annual Percentage Rate (APR) calculation, provided you are working with a fixed interest rate.
  • Establishment Fees —
    Any upfront fees charged by the lender when creating the secured personal loan agreement. Establishment fees are included in the calculation for your repayments to provide a more accurate total loan amount.

Once you have filled in your personal loan details, simply click ‘See My Repayments’ to view an estimated repayment amount.

You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.

If you are calculating a personal loan with variable interest, you will only be able to calculate the current repayment amount based on the current rate of interest.

How to use the
personal loan calculator

Personal Loan Account 8% Interest 12.5% Interest 16% Interest
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000
$5,000 $5,000 $5,000 $5,000

Personal loan
repayment formula

The simple formula for calculating personal loan repayments is:
Loan Amount / Discount Factor.

The complexity of the calculation is in determining the discount factor, which is calculated by dividing the interest rate of your loan by the number of payments per year (12 for monthly, 26 for fortnightly, or 52 for weekly) to first obtain the Periodic Interest Rate.

The discount factor formula on your personal loan is expressed as: (((1 + i) ^n) – 1) / (i (1 + i)^n)

  • n = the number of repayments
  • i = the annual interest rate
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Disclaimers

  • This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.
  • Results are based on information you have provided and do not take your personal circumstances into account.
  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.
  • It is not intended to be your sole source of information when making a financial decision. You may wish to consider getting advice from a licensed finance professional.
  • Using this calculator does not guarantee you will be eligible for a loan. You will need to satisfy your lender’s lending criteria.
  • The average interest rate is taken from Economic and Financial Statistics data published by the Reserve Bank of Australia. https://www.rba.gov.au/statistics/tables/xls/f06hist.xls

Disclaimers

  • This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.
  • Results are based on information you have provided and do not take your personal circumstances into account.
  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.
  • It is not intended to be your sole source of information when making a financial decision. You may wish to consider getting advice from a licensed finance professional.
  • Using this calculator does not guarantee you will be eligible for a loan. You will need to satisfy your lender’s lending criteria.
  • The average interest rate is taken from Economic and Financial Statistics data published by the Reserve Bank of Australia. https://www.rba.gov.au/statistics/tables/xls/f06hist.xls

Offset FAQs

View all FAQs

What is a redraw offset facility?

Disclaimers

Disclaimers

This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.

What is a redraw offset facility?

Disclaimers

Disclaimers

This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.

What is a redraw offset facility?

Disclaimers

Disclaimers

This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.

What is a redraw offset facility?

Disclaimers

Disclaimers

This is a model, not a prediction. Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

  • It applies to loans where your regular repayment includes both interest and the gradual repayment of the amount borrowed.
  • Initial inputs will be displayed on the left hand side of the graph. Your ‘What if’ scenario (if applicable) will be displayed on the right hand side of the graph.

Try our helpful calculators

Looking to see how much you can borrow, or what your repayments will be? Try one of our helpful calculators below, or book a no obligation chat with a My Money Sorted team member and we will help set you on the right path.

Need advice? Talk to a My Money Sorted adviser today.