Australian home loans use reducing balance interest calculations. Each repayment covers both interest and principal, with early repayments mostly going toward interest and later repayments paying down more principal.

Weekly vs Fortnightly vs Monthly

Paying fortnightly instead of monthly effectively makes 26 half-payments per year — equivalent to 13 monthly payments instead of 12. This extra payment goes directly to principal, which can shave years off your loan and save tens of thousands in interest.

About This Calculator

This calculator provides estimates for principal and interest home loans. It does not account for fees, offset accounts, redraw facilities, or rate changes. For personalised advice, consult a licensed mortgage broker or your lender.