Fortnightly Mortgage Payment Calculator
Find out how you can save serious money by switching their mortgage repayments from monthly to fortnightly.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Changing your home loan repayments from monthly to fortnightly can make a massive difference in the amount of interest you pay and time spent paying your loan off.
This is because there 12 months in a year but there are 26 fortnights. By switching to fortnightly payments you'll end up making an extra monthly payment each year, paying off more of your loan and freeing you from debt faster.
Try it out for yourself in the calculator below.
How to use the fortnightly repayment calculator
Say you have a loan of $400,000 charged at 2.75% over 30 years. Your monthly repayments would be $1,632.96 with an annual repayment of $19,595.52.
If your lender calculates your 26 fortnightly repayments by halving your monthly repayments, you’ll pay $816.48 every second week for an annual total of $21,228.48. This equates to an extra payment of $1,632.96 a year.
This means you’ll pay off your loan three years and five months earlier and save $23,920 in interest.
There’s a catch though. Not every lender calculates repayments like this.
True fortnightly repayments versus bi-monthly
Here's what one expert says you need to watch out for.
Glenn Braganza from 1st Choice Financial in Sydney’s Inner West, says you should be aware of how lenders will calculate repayments before you change them to fortnightly.
"Some banks will allow you to change your repayment frequency, but they’ll take your monthly repayment multiplied by 12 months and divided by 52 weeks. Then they’ll multiply this by two for fortnightly payments."
If a lender decides to calculate the repayment like this you’ll pay a lower amount each fortnight, putting you back at square one. In our example this would mean you’d pay $830.15 every fortnight rather than $899.33.
According to Braganza even if you change your repayments to 'true' weekly repayments, you can still save around $400 over the course of the loan.
"The problem occurs when you ring up a lender, because some lenders by nature will calculate it their own way and there's no two ways about it. So if you ring the Commonwealth Bank they’ll calculate it by halving the monthly repayments and do that. But some lenders will calculate a true fortnightly repayment," he says.
Check how your lender will calculate fortnightly repayments. If you start paying fortnightly, you could be in the fast lane to paying off your mortgage too.
To see how much your repayments would be normally, use our home loan repayment calculator.
Compare your mortgage options today
Disclaimer: It is advised that borrowers speak with a mortgage broker or accountant regarding their home loan structure and repayment frequency to ensure that it will suit their financial situation.
More guides on Finder
Binance vs Coinbase: Which is best for you?
Binance and Coinbase are two titans of cryptocurrency – let's see how the two stack up and find out which suits your needs.
He’s a bit of a fixer-upper: 4 in 5 first home buyers intend to renovate
First home buyers are getting practical with different tactics to enter the property market, according to new research by Finder, Australia’s most visited comparison website. A new survey has revealed that 1 in 5 (22%) first home buyers plan to renovate immediately after purchasing. Finder shares tips for sticking to your renovation budget.
Car loan statistics 2021
Finder research shows 2.7 million Australians have a car loan. Find out how much Aussies are borrowing, and how this has changed over time.
Toyota RAV4 car loans
Compare car loans and discover prices and specs of the Toyota RAV4.
76% of bank’s customers ahead on home loans shows it’s easier than you think
Less than 12 months since borrowers rushed to put their mortgages on hold, Aussies are paying more off their home loan than ever before
Find out about the different types of warehouse storage solutions, how much they cost and where to find them.
How to find out your credit score using GetCreditScore
Get a firmer grasp of your finances with this free tool.
Find out your credit score using Credit Simple
How to find out your credit score using this free tool.
How to read your credit score using Credit Savvy
Follow these tips to get a handle on your credit with this free tool.
How to get your credit score using ClearScore
How to get an accurate snapshot of your credit history with this free tool.
Home Loan OffersImportant Information*
Ask an Expert