Tax Cut to Mortgage Calculator

Put your 1 July 2026 tax cut on the mortgage and see the interest it wipes out.

Your details

Annual salary

Current loan balance

Interest rate

Years left on the loan

yrs

Loan balance, with and without the tax cut

WithoutTax cut redirected

Interest saved by redirecting your tax cut

$10,889

Your tax saving from the 1 July 2026 cut$268
Extra per month into the loan$22.33
Time cut off your loan5 months
New payoff time26.6 years
Interest you would pay without the extra$573,092

The cut to the second bracket is worth at most about $268 a year, which is easy to dismiss. Sent to the loan every month instead of the account it normally disappears into, it comes off the principal, so it saves interest for every year the loan still has to run. Small amounts compound. This is exactly the kind of thing an accountant who knows your return and a broker who knows your loan will spot together — separately, neither has the whole picture.

Have your accountant and broker look at this together

This calculator gives a general estimate only. It is not personal financial, credit or tax advice and does not take your objectives or circumstances into account.

What this calculator assumes

Based on resident individual tax rates for 2026-27, current as at July 2026. It measures only the change to the $18,200–$45,000 bracket and ignores every other part of your tax position, including HELP debts, offsets and deductions.
Assumes the interest rate stays the same for the whole remaining term, repayments are monthly, and the extra amount is paid every month without fail from the first month.
Assumes your loan allows extra repayments without a fee or break cost. Fixed-rate loans often limit or charge for them, so check your own loan before you start.
Interest saved is the difference in total interest between the two repayment schedules. It is an estimate based only on the figures entered, not a quote and not a guaranteed outcome.
General information only. It is not personal financial, tax or credit advice and does not consider your objectives, financial situation or needs.
Rates and thresholds current as at July 2026.

This calculator provides a general estimate only. It is not personal financial, credit or taxation advice and does not take your objectives, financial situation or needs into account. Counting Beans A.F. provides financial advice under AFSL 491754 (D&M Financial Services Pty Ltd) and credit assistance under Credit Representative number 528884. Please read our Financial Services Guide and Credit Guide, and speak with us before acting on any result.

Tax Cut to Mortgage Calculator

Your details

What this calculator assumes

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