Biweekly Payment Formula:
where \( r = \frac{\text{rate}}{26} \), \( n = \text{years} \times 26 + \text{Extra} \)
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The Biweekly Mortgage Calculator computes your mortgage payment when paid every two weeks instead of monthly. This results in 26 half-payments per year (equivalent to 13 full monthly payments), which can significantly reduce your loan term and interest paid.
The calculator uses the biweekly payment formula:
where \( r = \frac{\text{rate}}{26} \), \( n = \text{years} \times 26 \)
Where:
Explanation: The formula calculates the fixed payment needed to pay off the loan over the specified term with biweekly payments.
Details: Making biweekly payments can save thousands in interest and shorten your loan term by several years. Adding extra payments amplifies these benefits.
Tips: Enter your loan amount, interest rate, loan term, and any extra amount you plan to pay biweekly. All values must be positive numbers.
Q1: How much can I save with biweekly payments?
A: On a 30-year $300,000 loan at 4%, biweekly payments save ~$28,000 and pay off the loan 4-5 years early.
Q2: Is biweekly better than monthly with extra?
A: Mathematically equivalent if extra monthly payment equals half a payment. Biweekly may be easier to budget.
Q3: Do all lenders accept biweekly payments?
A: Some require setup fees. Check with your lender about their policies.
Q4: How does extra payment affect the calculation?
A: Extra payments reduce principal faster, saving interest and shortening the loan term.
Q5: Can I use this for other loan types?
A: Yes, it works for any amortizing loan (car, personal) with fixed rates.