For fortnightly and weekly repayments, there are several methods to calculate repayments. Among them, two are most popular:
(1) Actuarial Method which calculates the minimum repayments such that the loan can be paid off at the end of the term, not sooner and not later. It is true fortnightly and weekly repayments.
Another method is (2) Half Monthly Repayment Method which calculates fortnightly and weekly repayments simply by dividing the monthly repayment by two and four respectively. In method two, the fortnightly or weekly repayment will be higher than the actuarial method, which in effect, results in the borrower making extra repayments over the same 12 month period. The borrowers will repay the loan sooner and also save some interest. This calculator can help borrowers find how much interest and time can be saved if they make 1/2 or 1/4 of monthly repayments every two weeks or one week.
