What this calculator does
With a biweekly plan you pay half of your monthly mortgage payment every two weeks. There are 52 weeks in a year, so that is 26 half payments, the same as 13 full monthly payments instead of 12. The extra payment goes to principal, so the loan is paid off sooner and you pay less interest. Enter your balance, rate and years left to see how much you save, and any fees a biweekly program charges.
How it is worked out
The monthly payment is found with the usual loan formula. For the biweekly plan, the calculator adds one twelfth of a monthly payment to every monthly payment, which is how the 13th payment reaches the loan when a servicer applies half payments once a full payment has arrived. Each month, interest = balance × rate ÷ 12. Example: a $300,000 balance at 6.5% with 30 years left has a $1,896.20 monthly payment. Paying $948.10 every two weeks pays the loan off in about 24 years and 2 months instead of 30 years and saves about $87,256 of interest.
Do it yourself or use a program?
- You can usually get the same result for free by adding one twelfth of your payment to each monthly payment, or by sending one extra payment a year, marked for principal.
- Some third-party biweekly programs charge setup or per-payment fees. Enter them to see what is left of the saving.
- Ask your servicer how it applies extra payments and partial payments, and check your loan papers for a prepayment penalty.
Frequently asked questions
How much does a biweekly mortgage save?
It depends on the rate and the years left. On a new 30-year loan at 6.5%, it cuts almost 6 years and saves about 23% of the interest.
Is paying biweekly better than paying extra each month?
Not by much. Both add one extra payment a year. Paying a twelfth extra each month is often simpler and has no fees.
Does a biweekly plan lower my monthly payment?
No. Each half payment is half of your normal payment; you just pay more often, which adds up to one extra payment a year.
Should I pay my mortgage early?
That depends on your interest rate, your emergency savings and other debts. Paying off higher-rate debt and keeping an emergency fund usually come first. This calculator only shows the numbers.