# P&I Calculator (Principal and Interest)

Use our P&I calculator to work out the principal and interest (P&I) repayments for your home loan factoring in the loan term, interest repayments and payment frequency for your desired loan.

### How do you calculate a P&I loan?

A P&I (also known as P and I or Principal and Interest) is the most common type of loan repayment structure. As the name suggests, a P&I loan has repayments which include both principal (the amount owing on a loan) and interest (the borrowing cost of the loaned funds accrued). As you pay a P&I loan, the bank recalculates your loan balance down and subsequent future interest charged. At the start of a loan the majority of your repayment is usually going to be interest, whilst towards the latter half of your loan term and having paid down the loan significantly, the principal is the primary component and your loan balance will reduce substantially with each repayment.

Unlike an interest only loan, P&I repayments require a specific amortisation schedule to be calculated, so using a calculator such as our P&I calculator are the best option for accurately calculating your repayments.

Do you need assistance with finding out how much the repayments would be on a home loan? Speak with a broker today.

*Disclaimer: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Borrowers should consider discussing their individual situation with a qualified Australian Credit Licensee or authorised Credit Representative.*