Finance

Biweekly Mortgage Savings Calculator

Compare a monthly mortgage schedule with biweekly payments.

The result compares the two schedules side by side: the monthly payment and its total interest against the shorter biweekly payoff time and its lower total interest, so a shorter payoff with lower total interest means the extra yearly payment has reduced the cost of the loan.

Formula

Biweekly means 26 half-payments a year, equal to 13 monthly payments instead of 12; the extra payment each year shortens the term and cuts interest.

How it works

This is an estimate: the exact saving depends on how your lender applies biweekly payments. Some lenders hold half-payments until month-end, which reduces the benefit.

Worked example

For example, a loan of $250,000 at 6.5% over 30 years gives a monthly payment of $1,580.17, with monthly-schedule total interest of $318,861.22. Paying biweekly gives an approximate payoff of 24.2 years and biweekly total interest of about $245,426.40, a saving of $73,434.82 in interest.

FAQs

Why does it save interest?
One extra monthly payment a year goes straight to principal.

How much time does it save?
Typically several years on a 30-year loan, depending on rate.

Do all lenders offer it?
No — some charge a fee, or you can simply make one extra payment a year yourself.

Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.

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