Calculate and compare weekly, fortnightly, and monthly repayments for any Australian loan. Switching to fortnightly can save thousands in interest.
| Frequency | Payment | Total interest | Saving vs monthly |
|---|
Switching from monthly to fortnightly repayments is one of the simplest and most effective ways to reduce total loan cost. Because there are 26 fortnights in a year (not 24), fortnightly payments of half the monthly amount result in one extra full monthly payment per year — applied entirely to principal.
| $500,000 Mortgage at 6.5% | Monthly | Fortnightly | Weekly |
|---|---|---|---|
| Payment amount | $3,160/month | $1,580/fortnight | $790/week |
| Annual payments | 12 × $3,160 = $37,920 | 26 × $1,580 = $41,080 | 52 × $790 = $41,080 |
| Effective extra annual payment | — | +$3,160 | +$3,160 |
| Interest saved (30yr loan) | — | ~$63,000 | ~$63,000 |
| Years saved | 30 years | ~25 years | ~25 years |
| Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 2 years | $922/month | $1,128 | $21,128 |
| 3 years | $645/month | $1,620 | $21,620 |
| 5 years | $425/month | $5,496 (wait — recalc) | $25,496 |
What is the difference between weekly, fortnightly, and monthly loan repayments?
For mortgages, switching from monthly to fortnightly (half the monthly amount) results in 26 payments per year instead of 24 (equivalent to 13 monthly payments). The extra payment goes entirely to principal, saving years of interest. For budgeting, aligning repayments to your pay cycle reduces the risk of missing a payment.
Does paying fortnightly really save money on a mortgage?
Yes significantly. On a $500,000 mortgage at 6.5% over 30 years: monthly payments total $1,137,600. True fortnightly payments ($1,580 × 26) total approximately $1,074,600 — saving $63,000 in interest and cutting approximately 5 years off the loan term, at zero extra out-of-pocket cost.
Can I change my repayment frequency on an Australian mortgage?
Yes. Most Australian lenders allow you to change payment frequency through your online banking or by calling your lender. Ensure fortnightly payments are set at exactly half your monthly payment (not the minimum fortnightly amount calculated by your lender, which may simply be the monthly payment divided differently without the benefit of the 26-payment effect).