Home loan channelling calculator.
See how putting your income and surplus through a revolving credit account could change your mortgage repayment time. Compare it with keeping your scheduled repayments.
Your numbers
Illustrative defaults, not current rate offers. Results update as you change your numbers.
The initial revolving debt and credit limit. Keep this at or below half your mortgage; a larger portion is not always better.
Use what reaches your account after PAYE, ACC, KiwiSaver, student loans and other deductions. For weekly pay × 52 ÷ 12; fortnightly × 26 ÷ 12. Use one combined pay schedule for this estimate.
Exclude mortgage repayments and the revolving account fee. Include regular commitments and an allowance for irregular spending.
Timing and account fees
These assumptions affect the result. Use your loan's actual dates and fee.
$12.50 is an illustrative fee. Enter your product's fee, or zero if it has none.
Once revolving debt is cleared, another chunk can transfer at an assumed fee-free expiry. Fixed repayments stay unchanged, and some revolving headroom is reserved for bills. Confirm this structure with your lender.
Your estimate
Net mortgage balance over time
Balances subtract cash retained in the revolving account. Cash does not reduce fixed-loan interest while waiting for an expiry date.
What this estimate assumes
Scheduled repayments amortise the whole mortgage at the fixed rate over the entered term. Channelling puts all take-home income into the revolving account, pays living costs and the fixed repayment from it, and retains the surplus.
The two strategies use different repayment amounts. The estimated reduction includes the effect of paying more towards your mortgage. It does not isolate a benefit from salary timing. Unspent income in the scheduled-only path is not invested or credited with savings interest.
Interest, cash-flow and transfer rules
- The first salary arrives on the model start date. Monthly pay follows that date each month, clamped to month-end where necessary. Weekly and fortnightly pay arrives every 7 or 14 days, with pay amounts derived using 52 or 26 periods a year.
- Living costs leave evenly each day. Fixed repayments and account fees leave at the end of each monthly period. Actual bills and different household pay dates will change the result.
- Interest accrues daily using annual rate ÷ 365 and is posted monthly. Revolving interest is charged only on debit balances. A credit balance earns no interest and cannot cancel interest already accrued.
- Once revolving debt is cleared, another chunk can move from fixed at an expiry date. The model reserves one month of living costs, the fixed repayment, the account fee and a 31-day revolving-interest allowance. Fixed repayments are maintained after transfers.
- There are no mid-term fixed-loan transfers. Early-break, establishment and other unlisted fees are excluded. Rate, income and expense assumptions remain unchanged for the whole projection.
- The model checks the revolving credit limit and reports repayment time to a monthly period-end, up to a 60-year limit. It is not a daily settlement quote, bank approval or a replay of your transactions.
Formula and model reviewed 22 September 2026. Use actual net pay after all deductions. Check your lender's repayment permissions, fees and refix arrangements before acting.
We'll run your actual numbers.
A no-obligation chat with a Homelend adviser. We can check whether the revolving portion, repayment plan and lender conditions fit your circumstances.
Talk to HomelendThis calculator provides illustrative estimates, not financial advice. Results include additional repayments as well as salary timing, rate differences and the entered revolving fee. Actual results depend on your lender, transactions, rates and circumstances. Homelend advisers provide advice under Lift Capitals Limited (FSP754351).