1. What is Biweekly Loan Amortization?

Biweekly loan amortization refers to the process of paying off a loan with payments made every two weeks instead of monthly. This results in 26 payments per year (equivalent to 13 monthly payments), which can significantly reduce the loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses the following amortization formulas:

Where:

• \( Interest_k \) — Interest portion of the k-th payment
• \( Principal_k \) — Principal portion of the k-th payment
• \( Balance_k \) — Remaining balance after k-th payment
• \( r_{bi} \) — Biweekly interest rate (annual rate ÷ 26)
• \( PMT_{bi} \) — Biweekly payment amount

3. Benefits of Biweekly Payments

Key Advantages:

• Reduces loan term by several years
• Saves thousands in interest payments
• Matches payment frequency with many payroll cycles
• Builds equity faster

4. Using the Calculator

Instructions: Enter the loan amount, annual interest rate, and loan term in years. The calculator will show your biweekly payment amount and total interest paid over the life of the loan.

5. Frequently Asked Questions (FAQ)

Q1: How much faster does biweekly pay off a loan?
A: Typically 4-8 years faster on a 30-year mortgage, depending on the interest rate.

Q2: Is biweekly better than making extra payments?
A: Biweekly is effectively making one extra monthly payment per year, but structured in a manageable way.

Q3: Do all lenders offer biweekly payments?
A: Not all, but many do. Some may charge a setup fee for this service.

Q4: Can I set up biweekly payments myself?
A: Yes, by making half-payments every two weeks, but confirm with your lender how they apply partial payments.

Q5: How does biweekly compare to weekly payments?
A: Weekly payments would pay off the loan even faster, but the difference is less dramatic than monthly to biweekly.