1. What is Biweekly Loan Amortization?

Biweekly loan amortization calculates payments made every two weeks instead of monthly. This results in 26 half-payments per year (equivalent to 13 full monthly payments), which can significantly reduce loan term and interest paid.

2. How Does the Calculator Work?

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

Where:

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

Explanation: The formula calculates the fixed payment amount required to pay off the loan over the specified term, accounting for compound interest.

3. Benefits of Biweekly Payments

Details: Making biweekly payments instead of monthly can shorten your loan term by several years and save thousands in interest, as you effectively make one extra monthly payment each year.

4. Using the Calculator

Tips: Enter the principal 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 can I save with biweekly payments?
A: On a 30-year mortgage, biweekly payments can typically pay off the loan 4-8 years early and save 20-30% in total interest.

Q2: Is biweekly better than making extra payments?
A: Biweekly payments are automatic and consistent, while extra payments require discipline. The savings are similar if the amounts are equivalent.

Q3: Do all lenders accept biweekly payments?
A: Many do, but some may charge fees. Check with your lender before setting up biweekly payments.

Q4: How does this compare to weekly payments?
A: Weekly payments (52 per year) would save even more, but the additional savings are typically smaller than moving from monthly to biweekly.

Q5: Can I use this for any type of loan?
A: Yes, the calculator works for mortgages, car loans, personal loans, and other amortizing loans.