Calculators
Fortnightly vs monthly repayments calculator
Compare paying your home loan monthly with paying half the monthly amount every fortnight.
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Paying half every fortnight saves
$154,100
Loan repaid in about 24 years 6 months, 5 years 6 months sooner
- Monthly repayment
- $3,636
- Fortnightly (half)
- $1,818
- Interest, monthly
- $708,949
- Interest, fortnightly
- $554,848
General information and estimates only. Assumes a principal-and-interest loan with interest calculated and repaid monthly at a constant rate, and no fees. Your lender’s calculation, rate changes and fees will change the result. Not financial product advice. Fortnightly interest is charged at the annual rate divided by 26; lenders that calculate interest daily will differ slightly.
What this compares
The monthly version repays the loan over the term you enter. The fortnightly version pays exactly half that repayment every two weeks, charging interest each fortnight, until the loan is repaid.
For other ways to repay sooner, try the extra repayments calculator or the offset account calculator.
Common questions
Why do fortnightly repayments save money?
There are 26 fortnights in a year but only 12 months. Paying half your monthly repayment every fortnight adds up to 13 monthly repayments a year instead of 12. That extra repayment goes straight to the principal, so the loan is repaid sooner and you pay less interest.
Does my lender have to accept fortnightly repayments?
Most variable-rate loans allow fortnightly repayments, but check how your lender calculates them. Some set the fortnightly amount as the monthly repayment × 12 ÷ 26, which gives no saving; you need to pay half the monthly amount to get the benefit shown here.
Is it the same as making one extra repayment a year?
Almost. Paying fortnightly also reduces the balance a little earlier in each month, which saves slightly more than a single extra repayment at the end of the year. Use the repayment calculator to compare with a regular extra amount.