
Try it yourself. Use the **[Loan Repayment Calculator](/calculators/mortgage)** to compare weekly, fortnightly, and monthly schedules, and see how extra payments reduce total interest.

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## Why repayment frequency matters

Your loan interest is calculated daily but charged monthly.  
By paying **more often**, you reduce the **average daily balance** — meaning less interest builds up between payments.

Even though the difference looks small, the savings add up over years.

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## Table of contents
1. [Weekly vs fortnightly vs monthly](#weekly-vs-fortnightly-vs-monthly)
2. [Worked example](#worked-example)
3. [Adding small extra payments](#adding-small-extra-payments)
4. [When more frequent payments make sense](#when-more-frequent-payments-make-sense)
5. [FAQ](#faq)
6. [Disclaimer](#disclaimer)

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## Weekly vs fortnightly vs monthly

Here’s how the repayment frequencies compare on a typical Australian home loan:

| Frequency | Payments per year | Main benefit |
|------------|------------------:|---------------|
| **Monthly** | 12 | Standard setup, easiest for budgeting |
| **Fortnightly** | 26 | Slightly faster payoff due to extra half-month each year |
| **Weekly** | 52 | Smallest interest build-up between payments |

If your lender divides the monthly payment exactly (not the annual amount), the difference between fortnightly and monthly is minimal.  
But if they base it on **half the monthly payment × 26 fortnights**, you make the equivalent of one extra month’s repayment per year — shaving months or years off the loan term.

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## Worked example

Let’s say you borrow **$600,000 at 6.5%** over **30 years**.

| Repayment Type | Approx. Payment | Time Saved | Interest Saved |
|-----------------|----------------:|------------:|----------------:|
| Monthly | $3,792 | — | — |
| Fortnightly | $1,896 × 26 | ~1 year earlier | ~$30,000 less interest |
| Weekly | $948 × 52 | ~1.2 years earlier | ~$33,000 less interest |

Based on equivalent repayment structures where fortnightly/weekly equal half or quarter of the monthly payment.

Dividing the monthly payment in two and paying that amount each fortnight can save $30,000 in interest and reduce the time to repay 
your home loan by 1 year.

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## Adding small extra payments

This is where the real gains come from.

Adding **$20 per week extra** on the same $600,000 loan:

- Cuts about **1.5 years** off the loan term  
- Saves roughly **$45,000 in interest**  

It’s the same idea as a coffee-a-day — small, automatic, and painless.

> Combine fortnightly payments **plus** a small extra amount for maximum effect.

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## When more frequent payments make sense

- You’re paid **weekly or fortnightly** (easy to match pay cycle)  
- You prefer small, regular cash outflows instead of big monthly ones  
- You want to **build discipline** and reduce temptation to spend  
- You plan to add regular **extra repayments**

If your income or budget is tight, monthly is fine — just automate a small extra payment instead.

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> **Run your own numbers:** Try the [Loan Repayment Calculator](/calculators/mortgage) to see how frequency and extra repayments affect your total interest and payoff date.

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## FAQ

**Does paying weekly always save money?**  
Usually yes, but the amount depends on your lender’s calculation method. If they divide the annual amount into 52 equal payments, the saving is small. If they halve the monthly and multiply by 26 fortnights (or 52 weeks), you make an extra payment each year — which saves more.

**What if I get paid monthly?**  
Stick with monthly, but set up a small extra payment (even $50–$100/month). That can save tens of thousands in interest over the loan’s life.

**Can I switch repayment frequency later?**  
Yes, most lenders allow this online or via app. Always check there are no admin or redraw fees.

**Do extra repayments help more than frequency changes?**  
Yes. Frequency helps modestly; **extra repayments make the biggest impact**.

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## Disclaimer

All figures are illustrative only and assume a fixed 6.5% rate with no redraw limits or offset accounts.  
This article provides **general information only** and does not constitute financial advice.  
Always confirm details with your lender or a licensed financial adviser.

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We compare weekly, fortnightly and monthly loan repayments — plus the impact of small extra payments — using our free calculator.

#loans

Loan Repayments: Weekly vs Monthly (What Actually Saves More?)