What does Biweekly Mortgage Calculator do?
Biweekly mortgage calculator. Compare 26 half payments a year with 12 monthly payments and see the payoff date and interest saved, including held payments.
- Price
- Free
- Account
- Not required
- Processing
- Entirely in your browser; your data and files are not uploaded
- Works on
- Any modern browser on desktop, tablet or phone
- Region
- United States (USD)
- Category
- Financial Calculators
How to use the biweekly mortgage calculator
- Enter the loan amount (or your current balance), the interest rate and the term.
- Read the biweekly payment: half of the regular monthly principal and interest payment.
- Compare the payoff time and total interest for monthly payments, true biweekly payments and payments your servicer holds until a full payment builds up.
- Check with your servicer how biweekly payments are applied and whether any fee is charged before you sign up.
Worked example
$300,000 at 6.5% for 30 years
The monthly payment is $1,896.20, so the biweekly payment is $948.10. 26 half payments a year add up to $1,896.20 more than 12 monthly payments: one extra monthly payment. Applied every two weeks, the loan is repaid in 628 payments (about 24 years 2 months) and total interest falls from $382,636.71 to $294,513.45, a saving of $88,123.26. If the servicer holds the halves and applies the extra as a 13th monthly payment once a year, the loan ends after 292 months and the saving is $83,986.01.
How it works
The monthly schedule uses M = P × r / (1 − (1 + r)−n) with r = annual rate ÷ 12. The true biweekly schedule charges interest every two weeks at annual rate ÷ 26 and applies a payment of M ÷ 2 (rounded to the cent) every period until the balance is zero. The held biweekly schedule is the monthly schedule plus one extra monthly payment applied to principal with every 12th payment, which is what happens when a lender collects 26 halves and applies them as 13 full payments. Interest is rounded to the cent each period.
Assumptions
- The interest rate is fixed for the life of the loan.
- True biweekly assumes interest is calculated on the balance every two weeks. Most US mortgages calculate interest monthly, so the held biweekly figure is usually closer to what you will see.
- No biweekly program fees are included. Any setup or per-payment fee reduces the saving.
- Taxes, insurance and mortgage insurance are not included.
Frequently asked questions
Where does the saving come from?
From the extra payment. 52 weeks give 26 half payments, which equals 13 monthly payments a year instead of 12. That extra payment goes to principal, so the balance falls faster and less interest is charged.
Do all lenders apply biweekly payments every two weeks?
No. Some servicers and third-party programs hold each half payment until a full monthly payment has built up, and some charge fees. Ask how and when the money is applied to principal.
Can I get the same result without a biweekly program?
Usually yes. Paying one extra monthly payment a year, or one twelfth of a payment extra each month, gives a similar saving without fees. The extra mortgage payment calculator lets you model either.
Does a biweekly plan change my interest rate?
No. The rate stays the same; only the timing and number of payments change.
Limitations
- Estimates only. Your servicer’s rules decide how payments are credited.
- Does not model fees, escrow, or prepayment penalties.