How to Understand Your Results
This tool models two separate debt-reduction strategies, and shows their combined effect:
- Frequency Shifting: Switching to fortnightly payments set at exactly half your monthly payment means you make 26 payments a year instead of 24 fortnightly-equivalents \u2014 the equivalent of one extra full monthly repayment annually. Weekly works the same way, at a quarter of the monthly amount.
- Extra Contributions: Any additional amount you add on top reduces your principal faster, which reduces the interest that accrues on it for the remainder of the loan.
Frequently Asked Questions
Because a fortnightly payment set at half your monthly amount results in 26 payments a year (13 monthly-equivalents), not 24. That extra monthly-equivalent payment goes straight toward principal, which is why fortnightly payments are one of the simplest ways to pay off a mortgage faster without increasing your overall rate of spending much.
Most variable-rate home loans in Australia allow extra repayments and flexible payment frequency, but fixed-rate loans often cap extra repayments or apply break costs. Always confirm with your lender before changing your repayment structure.
No \u2014 this is a simplified model assuming extra repayments permanently reduce your loan balance. Offset accounts and redraw facilities can produce similar but not identical outcomes, and have their own rules. Speak to your lender or a financial adviser for an exact comparison.
Yes, this calculator assumes a constant interest rate for the life of the loan for simplicity. In reality, variable rates change over time, which will affect your actual results.