How interest is calculated can greatly affect your savings. The more often interest is compounded, the more you earn. This calculator helps you understand how compounding can affect your savings and what is the actual annual return.

- It does not take into account any possible monthly account fees.
- Interest rate does not change over the loan term.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
- It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout calculation whereas account balance is rounded to at least the nearer cent in practice.