1. What is Biweekly Loan Payment?

A biweekly payment plan involves making half of your monthly mortgage payment every two weeks. This results in 26 half-payments per year, which equals 13 full monthly payments, helping you pay off your loan faster.

2. How Does the Calculator Work?

The calculator uses the biweekly payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Biweekly interest rate (annual rate / 26)
• \( n \) — Total number of biweekly payments (years × 26)
• \( PMT_{biweekly} \) — Biweekly payment amount (USD)

Explanation: The formula calculates the equivalent biweekly payment that would match a standard monthly payment schedule, with the option to add extra payments.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several years and save thousands in interest. With extra payments, you can achieve even greater savings.

4. Using the Calculator

Tips: Enter your loan principal, annual interest rate, loan term in years, and any additional extra payment you plan to make. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much faster will I pay off my loan with biweekly payments?
A: Typically 4-6 years faster on a 30-year mortgage, depending on your interest rate.

Q2: Can I make biweekly payments with any lender?
A: Most lenders allow it, but some may charge fees. Check with your loan servicer.

Q3: How do extra payments affect the loan?
A: Extra payments go directly toward principal, reducing total interest and shortening the loan term.

Q4: Is biweekly better than monthly with extra payment?
A: Mathematically equivalent if the extra monthly payment equals the biweekly advantage (1/12 of annual payment).

Q5: Are there prepayment penalties?
A: Most modern loans don't have them, but check your loan documents to be sure.