Home Loan Over 20, 25 or 30 Years: Repayments vs Total Interest
Monthly repayments and total interest on $500,000 and $750,000 loans at 6% over three terms, and how a 30-year loan with extra repayments compares.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
Most Australian home loans default to 30 years. A shorter term means a bigger repayment but far less interest. Here's how 20, 25 and 30 years compare at 6%.
Repayments and total interest by term
| Loan | Term | Monthly repayment | Total interest |
|---|---|---|---|
| $500,000 | 20 years | $3,582 | $359,717 |
| $500,000 | 25 years | $3,222 | $466,452 |
| $500,000 | 30 years | $2,998 | $579,191 |
| $750,000 | 20 years | $5,373 | $539,576 |
| $750,000 | 25 years | $4,832 | $699,678 |
| $750,000 | 30 years | $4,497 | $868,786 |
A middle way
On $750,000, the 25-year loan costs $336 a month more than the 30-year one. If you take the 30-year loan but pay that extra each month anyway, it's paid off in about 25.1 years and saves about $173,939 in interest, while your required repayment stays at the lower amount if money gets tight.
- Check that your loan allows extra repayments without fees (most variable loans do; fixed loans often cap them).
- Extra repayments may go into redraw; know your lender's redraw rules.
- Lenders assess your borrowing power on the required repayment plus a buffer, so a longer term can help you qualify.