Fortnightly vs Monthly Payment Calculator
Compare paying half your mortgage every two weeks against monthly payments, and see how much of the saving is simply an extra payment a year.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Paying half the monthly amount every two weeks is widely sold as a clever way to clear a mortgage faster. It works, and most of the reason is arithmetic rather than cleverness: there are 26 fortnights in a year, so half-payments add up to thirteen monthly payments instead of twelve.
The rest comes from paying slightly earlier each month, which reduces the balance interest is charged on. Both effects are real, and neither is magic — the same result comes from simply paying one twelfth extra each month.
Why it works
A fortnightly schedule has 26 periods a year. Paying half the monthly amount each time totals 13 monthly payments rather than 12, so one full extra payment goes against the balance every year. Interest is also charged on a slightly lower average balance because money arrives sooner.
Worked example
On 250,000 at 6.5% over 25 years the monthly payment is about 1,688. Paying 844 every fortnight clears the loan in 20 years 10 months instead of 25 — four years and two months early — and saves about 50,392 in interest. The extra you actually pay is one monthly payment, 1,688, a year.
Check your lender applies it properly
Some lenders hold fortnightly payments and apply them monthly, which removes the interest benefit and leaves only the extra annual payment. Ask whether payments are credited on receipt. If they are not, paying one twelfth extra monthly achieves the same thing with less administration.
Turn a calculation into an enquiry
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Create your free property pageFrequently asked questions
Is fortnightly payment really better?
It genuinely clears the loan sooner, but mostly because you pay thirteen monthly equivalents a year instead of twelve. Presented as a free trick it is misleading; presented as a painless way to overpay, it is sound.
Could I get the same result another way?
Yes. Paying one twelfth extra each month produces almost the identical outcome and is easier to stop if money is tight. Which you choose is about how your pay arrives, not about the mortgage.
Do all lenders offer fortnightly payments?
Not all, and some accept them without crediting the balance until the month end, which removes half the benefit. Confirm how payments are applied before assuming the saving.