1. What is Biweekly Loan Amortization?

Biweekly loan amortization calculates payments every two weeks (26 payments per year) instead of monthly (12 payments per year). This results in one extra full payment each year, 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 amount paid directly reduces principal, saving interest and shortening loan term.

3. Benefits of Extra Payments

Details: Even small extra payments can have dramatic effects. For example, $50 extra biweekly on a $200,000 mortgage at 4% can save ~$25,000 in interest and pay off the loan 4 years early.

4. Using the Calculator

Tips: Enter loan principal, annual interest rate, term in years, and optional extra payment. Results show standard payment, payment with extra, and projected savings.

5. Frequently Asked Questions (FAQ)

Q1: Why biweekly instead of monthly?
A: Biweekly payments result in 26 half-payments per year (equivalent to 13 monthly payments), paying off loans faster with no change to budget.

Q2: How much can I save with extra payments?
A: Savings depend on loan amount, rate, and term. Even $25-100 extra per payment can save thousands in interest.

Q3: Should I refinance or make extra payments?
A: When rates are high, extra payments may be better than refinancing. Compare savings from both options.

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

Q5: How to apply extra payments?
A: Specify "apply to principal" when making payments. Some lenders automatically apply to future interest unless instructed otherwise.