Investment Loan Calculator Australia — Calculate Repayments, Compare Rates & Use Equity
Whether you're investing in property, shares, or other assets, our investment loan calculator Australia helps you plan your investment strategy. This comprehensive calculator calculates your monthly repayments, compares rates from CommBank, ANZ, Westpac, NAB, and ING, and helps you understand how to use equity from your existing property. With support for both principal & interest and interest-only loans, extra payment calculations, and detailed amortization schedules, this tool is essential for Australian investors.
What is an Investment Loan Calculator?
An investment loan calculator is a financial tool designed to help investors calculate loan repayments for investment properties, shares, or other investment assets. Unlike owner-occupier loans, investment loans typically have:
- • Higher interest rates (typically 0.5% - 1.0% higher than owner-occupier rates)
- • Different loan-to-value ratio (LVR) requirements (usually up to 80% LVR)
- • Interest-only options for better cash flow
- • Tax-deductible interest payments (for investment properties)
- • Different lending criteria and assessment methods
Our investment loan calculator Australia is specifically designed for Australian investors, taking into account local lending practices, interest rates, and loan products from major Australian banks.
Investment Loan Calculator Using Equity
One of the most powerful features for investors is using equity from existing properties. Our investment loan calculator using equity helps you:
- • Calculate available equity in your existing property
- • Determine maximum loan amount you can borrow using equity
- • Understand loan-to-value ratio (LVR) requirements (typically 80% for investment properties)
- • See how equity can fund your next investment
How equity works: If your property is worth $800,000 and you owe $300,000, you have $500,000 in equity. However, lenders typically allow you to borrow up to 80% of the property value, which means you can access up to $640,000 (80% of $800,000). After subtracting your existing loan balance ($300,000), you have $340,000 in available equity that can be used for investment purposes.
Using equity is a common strategy for property investors to grow their portfolio without needing additional cash deposits. The calculator shows you exactly how much equity you can access and how it affects your loan calculations.
Investment Loan Calculator Repayment
The investment loan calculator repayment feature calculates your monthly loan repayments based on:
- • Loan amount (principal)
- • Annual interest rate
- • Loan term (years)
- • Loan type (principal & interest or interest-only)
For principal & interest loans, the calculator uses the standard amortization formula to determine your monthly payment, which includes both principal and interest. Your payment remains constant, but the proportion of principal and interest changes over time—early payments are mostly interest, while later payments are mostly principal.
For interest-only loans, you pay only the interest portion each month, which results in lower monthly payments but no reduction in principal. Interest-only periods typically last 1-5 years, after which you must either repay the full loan amount or switch to principal & interest payments.
Investment Loan Calculator CommBank
Commonwealth Bank (CommBank) is Australia's largest bank and offers competitive investment loan products. Our investment loan calculator CommBank functionality allows you to:
- • Calculate CommBank investment loan repayments
- • Compare CommBank rates with other major lenders
- • Understand CommBank's investment loan features and requirements
CommBank offers investment loans with competitive rates, flexible repayment options, and interest-only periods. Use the calculator to estimate your CommBank investment loan repayments and compare with ANZ, Westpac, NAB, and ING.
Investment Loan Calculator ANZ
ANZ (Australia and New Zealand Banking Group) provides flexible investment loan options for Australian investors. Our investment loan calculator ANZ helps you:
- • Calculate ANZ investment loan repayments
- • Compare ANZ rates with CommBank, Westpac, NAB, and ING
- • Understand ANZ's investment loan terms and features
ANZ offers investment loans with competitive rates, offset account options, and flexible repayment structures. Use the calculator to estimate your ANZ investment loan repayments and see how they compare with other lenders.
Investment Loan Calculator Westpac
Westpac is one of Australia's major banks offering investment loan products. Our investment loan calculator Westpac allows you to:
- • Calculate Westpac investment loan repayments
- • Compare Westpac rates with CommBank, ANZ, NAB, and ING
- • See how Westpac's loan features affect your payments
Westpac offers investment loans with competitive rates and flexible terms. Use the calculator to estimate your Westpac investment loan repayments and compare with other major banks.
Investment Loan Calculator NAB
NAB (National Australia Bank) provides competitive investment loan products. Our investment loan calculator NAB helps you:
- • Calculate NAB investment loan repayments
- • Compare NAB rates with other major banks
- • Understand NAB's offset accounts and investment loan features
NAB offers investment loans with competitive rates and flexible repayment options. Use the calculator to estimate your NAB investment loan repayments and compare with CommBank, ANZ, Westpac, and ING.
Investment Loan Calculator ING
ING is a digital bank offering competitive investment loans in Australia. Our investment loan calculator ING allows you to:
- • Calculate ING investment loan repayments
- • Compare ING rates with traditional banks
- • See how ING's digital features benefit investors
ING typically offers competitive rates and flexible investment loan options. Use the calculator to estimate your ING investment loan repayments and compare with CommBank, ANZ, Westpac, and NAB.
Investment Loan Calculator Interest Only
Interest-only investment loans are popular with property investors because they provide better cash flow. Our investment loan calculator interest only helps you:
- • Calculate monthly interest-only payments
- • Determine total interest paid during the interest-only period
- • Compare interest-only vs. principal & interest loans
- • Understand the implications of interest-only loans
Advantages of interest-only investment loans:
- • Lower monthly payments improve cash flow
- • Tax-deductible interest payments (for investment properties)
- • Flexibility to sell before the interest-only period ends
- • Ability to invest extra cash flow in other investments
Considerations:
- • Loan balance doesn't decrease during interest-only period
- • Must repay full amount or switch to P&I after period ends
- • Higher total interest costs over the full loan term
Use the calculator to compare interest-only vs. principal & interest loans and see how they affect your cash flow and total costs.
Investment Loan Calculator Shares
While investment loans are commonly used for property, they can also be used for share investments. Our investment loan calculator shares functionality helps you calculate loan repayments for margin lending or share investment loans. These loans typically have:
- • Higher interest rates than property investment loans
- • Lower loan-to-value ratios (typically 50-70% LVR)
- • Margin call requirements if share values decline
- • Interest-only options available
Use the calculator to estimate repayments for share investment loans, but always consult with a financial advisor about the risks and requirements of margin lending.
Investment Mortgage Calculator
An investment mortgage calculator is another term for an investment loan calculator, specifically referring to loans secured against investment properties. The calculator helps you:
- • Calculate monthly mortgage repayments for investment properties
- • Determine total interest and repayment amounts
- • Compare different loan scenarios and interest rates
- • Plan your investment property strategy
Investment mortgages typically have higher rates than owner-occupier mortgages but offer tax benefits through deductible interest payments. Use the calculator to understand your investment mortgage costs and plan your property investment strategy.
Investment Payment Calculator
The investment payment calculator feature calculates your monthly payment obligations for investment loans. This includes:
- • Monthly principal & interest payments
- • Monthly interest-only payments
- • Total payment amounts over the loan term
- • Impact of extra payments on total costs
Understanding your payment obligations is crucial for cash flow planning, especially for investors with multiple properties or investments. Use the calculator to plan your payment schedule and ensure you can meet your obligations.
Investment Borrowing Calculator
An investment borrowing calculator helps you determine how much you can borrow for investment purposes. This includes:
- • Maximum borrowing capacity based on income and expenses
- • Available equity from existing properties
- • Loan-to-value ratio requirements
- • Serviceability assessments
Lenders assess investment borrowing capacity differently than owner-occupier loans, typically using rental income and applying different serviceability buffers. Use the calculator to estimate your borrowing capacity and plan your investment strategy.
Investor Loan Calculator
An investor loan calculator is designed specifically for property investors and helps you:
- • Calculate loan repayments for investment properties
- • Compare different loan types and interest rates
- • Understand tax implications and deductions
- • Plan your investment portfolio growth
Property investors often use multiple investment loans to build their portfolio. Use the calculator to model different scenarios, compare loan options, and make informed investment decisions.
How to Use the Investment Loan Calculator
Follow these steps to get accurate calculations:
- Select Loan Type: Choose between Principal & Interest or Interest Only.
- Enter Loan Amount: Input the amount you want to borrow.
- Enter Interest Rate: Input the annual interest rate (as a percentage).
- Enter Loan Term: Input the loan term in years (typically 15-30 years).
- Optional - Use Equity: Check the box to calculate using equity from an existing property, then enter property value and existing loan balance.
- Review Basic Results: Check monthly payment, total interest, and total repayment amount.
- Optional - Extra Payments: Enable extra payments to see how additional repayments save interest and reduce loan term.
- Optional - Bank Comparison: Enable bank comparison to see rates from CommBank, ANZ, Westpac, NAB, and ING.
- View Amortization Schedule: Click "Show Schedule" to see month-by-month breakdown of payments.
Example Calculations
Example 1: Basic Investment Loan
Loan: $500,000, Rate: 6.8%, Term: 30 years, Type: Principal & Interest
Monthly Payment: $3,260, Total Interest: $673,600, Total Repayment: $1,173,600
Example 2: Interest-Only Investment Loan
Loan: $500,000, Rate: 6.8%, Term: 5 years (interest-only period), Type: Interest Only
Monthly Payment: $2,833 (interest-only), Total Interest: $170,000
Example 3: Using Equity
Property Value: $800,000, Existing Loan: $300,000
Available Equity: $340,000 (80% LVR = $640,000 - $300,000)
Max Loan from Equity: $340,000
Example 4: With Extra Payments
Loan: $500,000, Rate: 6.8%, Term: 30 years, Extra: $500/month
Interest Saved: $98,400, Time Saved: 72 months (6 years), New Total Interest: $575,200
Example 5: Bank Comparison
Loan: $500,000, Term: 30 years, Type: Principal & Interest
CommBank (6.8%): $3,260/month, $673,600 total interest
ING (6.5%): $3,161/month, $637,960 total interest
Difference: $99/month, $35,640 total interest saved
FAQ: Investment Loan Calculator
Q: What's the difference between investment loans and owner-occupier loans?
A: Investment loans typically have higher interest rates (0.5% - 1.0% higher), different LVR requirements (up to 80% vs 95% for owner-occupier), and interest payments are tax-deductible for investment properties.
Q: How much equity can I use for investment?
A: Most lenders allow you to borrow up to 80% of your property's value for investment purposes. After subtracting your existing loan balance, the remaining amount is your available equity.
Q: Should I choose interest-only or principal & interest?
A: Interest-only loans provide better cash flow but result in higher total interest costs. Principal & interest loans reduce your loan balance but have higher monthly payments. Choose based on your cash flow needs and investment strategy.
Q: Are investment loan interest payments tax-deductible?
A: Yes, for investment properties, interest payments are generally tax-deductible. However, tax laws can be complex, so always consult with a tax advisor for your specific situation.
Q: How do I compare investment loan rates?
A: Use the bank comparison feature to see rates from CommBank, ANZ, Westpac, NAB, and ING. However, actual rates vary based on LVR, credit score, loan amount, and lender policies. Always get official quotes from lenders.
Conclusion
An investment loan calculator Australia is essential for any investor planning to borrow for investment purposes. Whether you're investing in property, shares, or other assets, this calculator helps you understand your repayment obligations, compare rates from major Australian banks like CommBank, ANZ, Westpac, NAB, and ING, and plan your investment strategy. Use it to calculate repayments, understand equity-based borrowing, compare interest-only vs. principal & interest loans, and make informed investment decisions.
Remember that investment loans have different requirements and rates than owner-occupier loans. Always consult with a mortgage broker or financial advisor, get official quotes from lenders, and consider the tax implications before making investment decisions.