About this calculator
Victoria's land transfer duty is among Australia's heaviest at higher prices: above $960,000 the rate is a flat 5.5% of the total price, so a $1 million Melbourne home carries $55,000 of duty at general rates. Below that, owner-occupiers get real relief — the principal place of residence (PPR) concession cuts the marginal rate to 5% between $130,000 and $440,000, and this calculator applies the PPR table automatically for homes up to $550,000.
First home buyers do best of all: no duty at all on homes up to $600,000, then a sliding phase-out to $750,000 where the duty payable is the general duty scaled by how far past $600,000 the price sits. Tick the first-home-buyer box to use those rules. Investors pay general rates at every price — the figures here assume you will live in the home.
How to use it
- Enter the property price and your deposit — the difference, plus any LMI, is the loan amount.
- Add the interest rate and loan term (30 years is the Australian standard).
- If you will keep savings in an offset account, enter the average balance — you will see the interest it saves and how much sooner the loan ends.
- Tick "first home buyer" if it applies: the stamp duty below then uses your state's first-home concessions.
- Read the monthly repayment, the stamp duty and the real payoff time with your offset.
The formula
M is the monthly repayment, P the loan amount, r the monthly rate and n the number of payments. An offset account does not change the repayment; it reduces the balance on which interest is charged, so more of each repayment becomes principal and the loan ends sooner. Stamp duty is charged by the state on the purchase price using that state's banded table.
Worked example
An $800,000 Melbourne home with a $160,000 deposit leaves a $640,000 loan — $3,837 a month at 6.00% over 30 years. Duty at general rates on $800,000 is $43,070. A first home buyer pays the same $43,070 at this price (the exemption ends at $750,000), which is exactly why the thresholds matter: at $700,000 a first buyer pays about $24,713, and at $600,000 they pay nothing. An average $50,000 offset balance clears the loan in 25 years 7 months and saves about $204,666 of interest.
Frequently asked questions
How much is stamp duty on a $500,000 home in Victoria?
For an owner-occupier, the PPR concession applies: $18,370 plus 6% of the amount over $440,000 — $21,970 on $500,000. At general (investor) rates it would be $25,070. A first home buyer pays $0, because $500,000 is under the $600,000 exemption threshold.
How does the Victorian first-home phase-out work between $600,000 and $750,000?
Duty payable = general duty × (price − $600,000) ÷ $150,000. At $675,000, halfway through the band, you pay half the general duty — $17,785 instead of $35,570. At $750,000 the concession ends and full duty applies.
Why does duty jump so much around $960,000 in Victoria?
Because the band above $960,000 is not marginal — it charges 5.5% of the entire dutiable value. A home at $960,000 under the marginal table owes about $52,670; at $970,000 the flat-rate band charges $53,350, and the gap widens from there. It is one of the few Australian tables where a slightly cheaper offer can save disproportionate duty.
Does the calculator include the First Home Owner Grant?
No — the Victorian FHOG ($10,000 for new homes in Melbourne, $20,000 in regional Victoria, subject to caps) is a cash grant paid separately, not a duty reduction. This page models the duty exemption and concession, which are usually worth more.
What formula does this home loan calculator — victoria calculator use?
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), interest charged on (balance − offset) M is the monthly repayment, P the loan amount, r the monthly rate and n the number of payments. An offset account does not change the repayment; it reduces the balance on which interest is charged, so more of each repayment becomes principal and the loan ends sooner. Stamp duty is charged by the state on the purchase price using that state's banded table. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.