Fortnightly and Weekly Repayment Calculator
Compare what your home loan costs if you repay weekly, fortnightly or monthly, and see how much sooner you could own your home by paying half your monthly repayment every two weeks.
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Calculator results are estimates only. A personalised review can confirm how your lender sets weekly and fortnightly repayments on your actual loan.No fee from us for arranging your finance. No obligation. Takes 2 minutes
What this calculator works out
Changing how often you repay sounds like a small admin decision. It can be worth nothing, or it can take years off your loan. Which one you get depends on how the repayment amount is set, and this calculator shows you all three numbers side by side.
Your repayment at each frequency
The weekly, fortnightly and monthly amount on the same loan, rate and term, so you can line the debit up with your pay cycle and see what leaves your account each time.
Total interest for each option
What each schedule costs over the life of the loan. This is where most people get a surprise, because paying more often on its own changes the total far less than they expect.
Time and interest saved
How many years sooner the loan is cleared, and how much interest you avoid, if you pay half your monthly repayment every fortnight or a quarter of it every week.
How the maths works
Step 1. The standard repayment
Every principal and interest repayment, whatever the frequency, comes from the same formula. The only things that change are the rate per period and the number of periods.
P = L × i ÷ (1 − (1 + i)−n)
P is the repayment, L is the loan amount, i is the interest rate per period and n is the number of repayments. For monthly repayments, i is the annual rate divided by 12 and n is the term in years times 12. For fortnightly it is divided by 26 and multiplied by 26, and for weekly it is 52. Worked this way, a true fortnightly repayment is simply the amount that clears the loan in exactly the same term.
Step 2. The two kinds of fortnightly repayment
This is the part most calculators skip. There are two very different ways to arrive at a fortnightly amount, and only one of them pays the loan off early.
Calculated fortnightly = monthly repayment × 12 ÷ 26
Accelerated fortnightly = monthly repayment ÷ 2
Accelerated fortnightly = monthly repayment ÷ 2
The first spreads the same yearly total across 26 payments, so you repay about what you would have repaid monthly. The second halves the monthly amount and pays it 26 times a year. Because a year has 26 fortnights rather than 24 half months, 26 halves add up to 13 monthly repayments instead of 12. That extra repayment each year is what shortens the loan.
Why the calendar does the work
A month is not four weeks. Twelve months hold 52 weeks, which is 13 blocks of four weeks. So a quarter of your monthly repayment paid every week, or half of it paid every fortnight, always adds up to one extra monthly repayment across the year. ASIC’s Moneysmart describes fortnightly repayments in exactly these terms.
What the formula cannot see
The formula assumes a fixed rate for the whole term and interest charged at the end of each period. In practice, Moneysmart notes that interest on most home loans is calculated daily, lenders debit on set dates, and variable rates move. Treat the output as a clear comparison between options, not the exact figure your lender will show on a statement.
Three ways a fortnightly repayment can be set
Here is the same loan, $500,000 over 30 years at an assumed 6.00 per cent p.a., with the fortnightly amount set three different ways. The first two look almost identical. The third is the one that matters.
True fortnightly
The loan is recalculated over 780 fortnights. The repayment is $1,382.92 and total interest is about $578,674, only around $517 less than paying monthly. The term does not change.
Monthly × 12 ÷ 26
The monthly repayment of $2,997.75 is spread across 26 payments, giving $1,383.58. The loan finishes one fortnight early and total interest falls by about $1,447. A small gain, mostly from paying a little sooner each month.
Half the monthly repayment
Paying $1,498.88 every fortnight clears the loan in 638 fortnights, roughly 24 and a half years, with total interest of about $455,131. That is around $124,060 less interest and about five and a half years sooner.
All three figures assume a constant rate for the full term and interest calculated per repayment period. They were calculated with the formula above and are rounded to the nearest dollar where shown as about.
A worked example, start to finish
The figures below are illustrative and are not a rate offer, a quote, or a prediction. The loan is $500,000, principal and interest, over 30 years, at an assumed rate of 6.00 per cent p.a. that stays the same for the whole term. There are no fees, no offset account and no rate changes in these numbers.
Monthly
Repayment $2,997.75, 360 repayments
Total interest about $579,191
True fortnightly
Repayment $1,382.92, 780 repayments
Total interest about $578,674, a saving of about $517
True weekly
Repayment $691.32, 1,560 repayments
Total interest about $578,452, a saving of about $739
Repayment $2,997.75, 360 repayments
Total interest about $579,191
True fortnightly
Repayment $1,382.92, 780 repayments
Total interest about $578,674, a saving of about $517
True weekly
Repayment $691.32, 1,560 repayments
Total interest about $578,452, a saving of about $739
Recalculating the loan for a shorter repayment period saves only a few hundred dollars over 30 years. You pay the same amount each year, just in smaller pieces, so the balance falls at almost the same speed.
Accelerated fortnightly
Repayment $1,498.88 (half the monthly amount)
Paid off in 638 fortnights, about 24 and a half years
Total interest about $455,131, a saving of about $124,060
Accelerated weekly
Repayment $749.44 (a quarter of the monthly amount)
Paid off in 1,274 weeks, about 24 and a half years
Total interest about $454,581, a saving of about $124,610
Repayment $1,498.88 (half the monthly amount)
Paid off in 638 fortnights, about 24 and a half years
Total interest about $455,131, a saving of about $124,060
Accelerated weekly
Repayment $749.44 (a quarter of the monthly amount)
Paid off in 1,274 weeks, about 24 and a half years
Total interest about $454,581, a saving of about $124,610
Over a year, the accelerated fortnightly schedule pays $38,970.78 against $35,973.03 on monthly repayments. The difference is $2,997.75, exactly one monthly repayment. Weekly and fortnightly accelerated schedules land within about $550 of each other, so choose the one that suits your pay, not the one that looks cleverer.
Switching part way through
After 10 years of monthly repayments the balance is about $418,429
Moving to $1,498.88 a fortnight from that point clears it in about 17.3 years instead of 20
Interest saved over the remaining term: about $47,453
After 10 years of monthly repayments the balance is about $418,429
Moving to $1,498.88 a fortnight from that point clears it in about 17.3 years instead of 20
Interest saved over the remaining term: about $47,453
The saving comes from paying more, not from paying more often
Accelerated fortnightly works because you repay one extra monthly amount every year. To test that, add one twelfth of the monthly repayment, $249.81, to each monthly payment on the same loan. The loan is cleared in 295 months and saves about $122,776 in interest, almost the same result as the accelerated fortnightly schedule.
So the real question is not weekly versus fortnightly versus monthly. It is whether you can comfortably put roughly one extra repayment a year into the loan, and whether your lender lets you do it without a fee. If the answer to both is yes, pick the frequency that matches your pay and set the amount yourself.
What the calculator does not show you
A frequency calculator compares clean schedules. Your real loan has a lender, a product and a contract behind it, and a few of those details change the answer.
How your lender sets the amount
Some lenders halve the monthly repayment when you switch to fortnightly. Others spread the yearly total across 26 payments, which gives almost no benefit. Ask which method applies and whether you can set a higher amount yourself.
Daily interest and debit dates
Interest on most home loans is calculated daily, so the exact day money leaves your account changes the figure slightly. The calculator uses one rate per period, which is close but not identical.
Rate changes
When a variable rate moves, your lender may recalculate the minimum repayment. Check whether your chosen higher repayment stays in place or drops back to the new minimum.
Fixed rates and extra repayment limits
The extra you pay under an accelerated schedule counts as an extra repayment. Moneysmart advises checking whether extra repayments are allowed and whether fees apply. Fixed rate loans in particular may limit them.
If your extra repayments sit in a redraw facility, the interest saving still applies while the money stays in the loan. How and when you can take it back out depends on your loan terms.
Before you change your repayment frequency
Questions to ask your lender
A two minute call or a look through your loan app answers most of this. The first question is the one that decides whether the switch is worth anything.
If your loan is split between a fixed and a variable portion, ask these questions for each portion separately, because the rules for extra repayments can differ.
Match the debit to your pay cycle
The easiest way to make an accelerated schedule stick is to set the debit for the day after pay lands. With 26 fortnights in a year, two months will have three repayments instead of two. Plan your budget for those months so the third debit does not catch you short.
Compare it with an offset account
Money in an offset account reduces the balance your lender charges interest on, and it stays available to you. Extra repayments do a similar job but may be harder to access. If you already hold savings, Moneysmart suggests comparing any offset fees and rate difference against the interest you expect to save.
Related tools on this site: loan repayment calculator for your base repayment, extra repayment calculator for a fixed extra amount each month, lump sum repayment calculator for a one-off payment, and home loan offset calculator. If your current lender will not let you set your own repayment, it may be time to look at refinancing your loan.
To add a regular extra amount on top of your repayments, try the extra repayment calculator.
To add a regular extra amount on top of your repayments, try the extra repayment calculator.
Sources
Australian Government, ASIC Moneysmart: Pay off your mortgage faster, Mortgage offset accounts and Mortgage calculator.
About the figures on this page. Every repayment, term and interest amount on this page was calculated directly from the formula shown above, using the stated loan amount, term and an assumed constant rate, with interest applied once per repayment period. The rates used are illustrative and are not an offer. Your lender calculates interest daily and may round repayments differently, so its figures will vary slightly.
General information only. Nothing on this page takes your objectives, financial situation or needs into account, and it is not a recommendation to change your repayment frequency. Loanity is a credit representative and can provide credit assistance once we understand your circumstances.
Australian Government, ASIC Moneysmart: Pay off your mortgage faster, Mortgage offset accounts and Mortgage calculator.
About the figures on this page. Every repayment, term and interest amount on this page was calculated directly from the formula shown above, using the stated loan amount, term and an assumed constant rate, with interest applied once per repayment period. The rates used are illustrative and are not an offer. Your lender calculates interest daily and may round repayments differently, so its figures will vary slightly.
General information only. Nothing on this page takes your objectives, financial situation or needs into account, and it is not a recommendation to change your repayment frequency. Loanity is a credit representative and can provide credit assistance once we understand your circumstances.
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Bring your fortnightly or weekly result and we will check how your lender sets the repayment and whether your loan lets you pay more.
STILL GOT QUESTIONS?
Fortnightly and weekly repayment questions, answered
Is it better to pay a mortgage weekly or fortnightly?
If you pay a quarter of the monthly repayment weekly or half of it fortnightly, the results are almost the same. On a $500,000 loan over 30 years at an assumed 6.00 per cent p.a., the two accelerated schedules finish within about $550 of each other in total interest. Choose the frequency that matches your pay, because a repayment that lines up with your income is easier to keep up.
How much do I save paying fortnightly instead of monthly?
It depends on how the fortnightly amount is set. If it is half your monthly repayment, the example on this page saves about $124,060 in interest and clears the loan about five and a half years early. If your lender recalculates a true fortnightly repayment over the same term, the saving on the same loan is only around $517.
Why do fortnightly repayments pay off a loan faster?
There are 26 fortnights in a year. Paying half the monthly amount 26 times adds up to 13 monthly repayments instead of 12. That extra repayment goes straight to the principal every year, which cuts the interest charged on the balance from then on.
How do I calculate my fortnightly repayment?
For an accelerated fortnightly repayment, divide your monthly repayment by two. For a true fortnightly repayment, use P = L × i ÷ (1 − (1 + i)^−n) with i as the annual rate divided by 26 and n as the term in years times 26. The calculator above does both for you.
Does my bank calculate fortnightly repayments as half the monthly amount?
Not always. Some lenders halve the monthly repayment, while others multiply it by 12 and divide by 26, which keeps the yearly total about the same. Check your loan documents or ask your lender how the figure is worked out before you switch.
Is paying fortnightly the same as making extra repayments?
In effect, yes. An accelerated fortnightly schedule is a way of making one extra monthly repayment a year in small pieces. Adding one twelfth of your monthly repayment to each monthly payment gets a very similar result, as the worked example on this page shows.
Can I make fortnightly repayments on a fixed rate loan?
Whether you can pick a fortnightly frequency on a fixed rate loan depends on the lender and product. Either way, the extra amount in an accelerated schedule counts as an extra repayment. Fixed rate loans may limit extra repayments or charge fees if you go over a limit, so check your loan terms first.
Should I pay fortnightly or keep the money in an offset account?
Both reduce the interest you pay. An offset account keeps the money available, while extra repayments may sit in a redraw facility with its own access rules. The better choice depends on your loan features, any fees and how likely you are to need the money.
Can I change my repayment frequency at any time?
That depends on your lender and loan product, so ask how the change is made and whether any conditions apply. Before you change, confirm the new amount and the date the first repayment will come out.
Do you charge a fee to help me review my repayments?
We do not charge you a fee for arranging your finance. Brokers are generally paid a commission by the lender when a loan settles. If any fee from us would ever apply to your situation, you would be told in writing before you proceeded.
Important information about this calculator
This calculator estimates repayments and total interest for weekly, fortnightly and monthly schedules using the loan amount, interest rate and term you enter. It assumes the rate stays the same for the whole term and does not account for fees, charges, offset or redraw balances, rate changes, daily interest calculation or how your lender rounds or schedules repayments.
Interest rates and lender policies change over time. Loanity does not guarantee that you will achieve the calculated outcome or that any loan will be approved. The results are general information only and are not financial advice.
This calculator estimates repayments and total interest for weekly, fortnightly and monthly schedules using the loan amount, interest rate and term you enter. It assumes the rate stays the same for the whole term and does not account for fees, charges, offset or redraw balances, rate changes, daily interest calculation or how your lender rounds or schedules repayments.
Interest rates and lender policies change over time. Loanity does not guarantee that you will achieve the calculated outcome or that any loan will be approved. The results are general information only and are not financial advice.