1. What is Biweekly Loan Amortization?

Biweekly loan amortization calculates payments every two weeks (26 payments per year) instead of monthly. This results in one extra full payment each year, reducing both the loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses the biweekly amortization formula:

Where:

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

Explanation: The formula calculates the fixed payment needed to pay off the loan over the specified term, including any extra payments you choose to make.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several years and save thousands in interest. Adding extra payments amplifies these benefits.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Typically 4-8 years off a 30-year mortgage and 20-30% interest savings, depending on the loan terms.

Q2: Is biweekly better than monthly with extra?
A: Mathematically equivalent if you make the same total extra payments annually, but biweekly enforces the discipline.

Q3: Do all lenders accept biweekly payments?
A: Most do, but some may charge fees. Always check with your lender before switching payment schedules.

Q4: How does the extra payment work?
A: The extra amount is added to each biweekly payment and applied directly to principal, reducing interest costs.

Q5: Can I use this for any loan type?
A: Yes, it works for mortgages, car loans, personal loans - any amortizing installment loan.