Bi-Weekly Payment Calculator
Discover how bi-weekly payments can help you pay off your loan faster and save thousands in interest.
Pay Off Your Loan Faster
By paying half your monthly payment every two weeks, you make 13 full payments per year instead of 12
Understanding Bi-Weekly Payments
What Are Bi-Weekly Payments?
Bi-weekly payments mean paying half of your monthly payment every two weeks instead of making one full payment each month. Since there are 52 weeks in a year, you end up making 26 half-payments, which equals 13 full monthly payments annually instead of 12.
Why Bi-Weekly Saves Money
- Extra Payment: You make one additional full payment per year
- Faster Principal Reduction: More frequent payments reduce principal faster
- Less Interest Accrual: Lower principal means less interest over time
- Aligned with Paycheck: Easier budgeting if you're paid bi-weekly
The Math Behind It
- Monthly: 12 payments per year
- Bi-Weekly: 52 weeks / 2 = 26 half-payments = 13 monthly payments
- Extra Payment: 13 - 12 = 1 full extra payment per year
- Impact: On a 30-year mortgage, this can save 4-6 years
Setting Up Bi-Weekly Payments
- Contact your lender to ask about bi-weekly payment options
- Ensure payments are applied immediately (not held until month-end)
- Verify extra payments go toward principal reduction
- Alternatively, make one extra payment per year yourself
Important Considerations
- Some lenders charge setup fees for bi-weekly programs
- Make sure your lender applies payments immediately
- Watch for prepayment penalties on some loans
- DIY option: Make one extra principal payment per year
Best Loans for Bi-Weekly Payments
- Mortgages: Biggest savings due to large principal and long term
- Auto Loans: Good savings on 4-7 year loans
- Student Loans: Effective for federal and private loans
- Personal Loans: Worthwhile if no prepayment penalty