1. What is Biweekly Loan Amortization?

Biweekly loan amortization involves making payments every two weeks instead of monthly. This results in 26 payments per year (equivalent to 13 monthly payments), which can significantly reduce loan term and interest costs.

2. How Does the Calculator Work?

The calculator uses the standard amortization formula adjusted for biweekly payments:

Where:

• \( P \) — Principal loan amount
• \( r \) — Biweekly interest rate (annual rate ÷ 26)
• \( n \) — Total number of biweekly payments (years × 26)

Extra Payments: Any additional payment is applied directly to principal, reducing future interest calculations.

3. Benefits of Extra Payments

Details: Making extra payments can significantly reduce total interest paid and shorten loan term. Even small additional amounts applied regularly can have substantial long-term effects.

4. Using the Calculator

Tips: Enter principal amount, annual interest rate, loan term in years, and optional extra payment amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Typically 4-6 years on a 30-year mortgage, saving 20-30% in total interest, depending on the rate.

Q2: Is biweekly better than monthly with extra?
A: Mathematically similar, but biweekly enforces discipline. Combining both strategies maximizes savings.

Q3: When should I make extra payments?
A: Early in the loan term has greatest impact, but any time helps. Consider after building emergency savings.

Q4: Are there prepayment penalties?
A: Most modern loans don't have them, but check your loan agreement to be sure.

Q5: Should I pay extra or invest instead?
A: Depends on interest rate vs expected investment returns. Generally, pay down debt first if rate >5-6%.