To calculate loan repayments, at a very basic level, we take your loan amount, add the total estimated amount of interest we’ll charge over the life of the loan, and then divide that total up into a weekly, fortnightly, or monthly amount (whichever suits you best) based on the length of your loan term.
How we calculate weekly and fortnight repayments
We calculate weekly and fortnightly repayments a little differently. For example, in a fortnightly repayment scenario, instead of multiplying the monthly repayment by 12 and dividing it by 26 fortnights, we simply divide your monthly repayment amount by 2.
The fortnightly repayment amount is rounded up to the nearest dollar. This calculation method ensures you pay the full monthly figure over 2 fortnights. Over time, this means you'll pay off your loan slightly faster and pay less interest than if the repayments were calculated by annualising the monthly figure.
For fixed and interest-only loans
- Saving up