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Biweekly Mortgage Calculator

Twenty six half payments a year add up to thirteen monthly ones, so the whole effect is one extra payment a year against principal. Here is what that is worth, and what a servicer setup fee takes back out of it.

Loan Amount

Interest Rate (percent)

Term

Servicer Setup Fee (some charge for enrolling, many do not)

Extra Principal on Top (per month, optional)

Values shown are examples. Servicers credit the extra payment monthly rather than compounding every two weeks, which is how this is modelled.

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What Biweekly Buys

Interest Saved	$0
Time Saved	n/a
Saving After Any Setup Fee	$0

Monthly Payment	$0
Biweekly Payment	$0
Paid per Year, Monthly	$0
Paid per Year, Biweekly	$0
The Extra Each Year	$0

Paid Off, Monthly	n/a
Paid Off, Biweekly	n/a

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For illustration only, not financial advice. Results are estimates based on the numbers you enter and do not constitute an offer, rate quote or approval.

How this is worked out

A biweekly plan takes half the monthly payment every two weeks. There are 26 two-week periods in a year, so you pay 13 monthly payments instead of 12, and the thirteenth goes entirely to principal.

Servicers hold each half payment and apply them monthly rather than compounding every fourteen days, so this models one twelfth of a payment added to principal each month, which matches how the money is actually credited.

Any setup fee is subtracted from the interest saved, because the same result is available free by paying the extra one twelfth yourself.

Consumer Financial Protection Bureau, biweekly payment plans

Questions people ask

Do I need to enrol in a program?

No, and enrolling can cost money for nothing. Adding one twelfth of your payment to principal each month gives the same answer with no fee and no third party holding your money.

Will my servicer apply the extra to principal?

Only if you say so. Unlabelled extra money is often held as a prepayment of next month's bill, which saves nothing. Mark it as principal only.

Does this work on any loan?

It works on anything that amortises, including auto and student loans. Check for a prepayment penalty first, they are rare on mortgages now but not extinct.

Is paying the mortgage down the best use of the money?

It is a guaranteed return equal to your rate, tax adjusted. Against a 6.5% mortgage that is a strong risk-free return, but employer match and high-rate credit card debt both beat it.

What if my budget is tight?

The whole effect is one extra payment a year. Paying it as a lump sum from a bonus does almost the same thing, and it commits you to nothing monthly.

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