Bi-weekly Payment Calculator

Regardless of the type of mortgage, borrowers usually have the option to prepay on the principal balance of the mortgage in order to pay off the mortgage faster than the established term of the mortgage. Making bi-weekly payments on your mortgage greatly reduces the time it takes to fully repay your loan, and significantly reduces the total amount of interest paid. With bi-weekly payments, you repay half of your normal monthly payment every two weeks, instead of every month. This means that you pay equal to one full payment every four weeks. Therefore, over the course of one year, you will have made 13 full payments – one more than if you were paying monthly. This is mutually beneficial to the lender and the borrower; the lender gets an extra payment each year and the borrower not only repays their debt faster, but repays significantly less.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

Why use the Bi-weekly Payment Calculator?

The bi-weekly payment calculator will help you to calculate the amount of money that you will save by paying your mortgage on a bi-weekly basis instead of a monthly basis. Making one extra payment each year can shave years off your mortgage and save you thousands of dollars in interest – our calculator can tell you exactly how much you stand to save.

When you click View Report, the calculator will show a comparison between your monthly payment and the proposed bi-weekly payment. This calculator also displays the length of time it will take to repay you loan and the total interest that you will pay on a bi-weekly payment schedule compared to a monthly mortgage payment.

How to use the Bi-weekly Payment Calculator

Not sure where to start? Let us help you:

  1. Input your mortgage rate by using the slider or simply typing it into the box
  2. Enter the amount you are borrowing on your mortgage
  3. Choose the number of years you plan to take to repay your mortgage
  4. Choose from the drop-down whether you would like to calculate your savings based on a weekly or bi-weekly payment plan
  5. Click View Report for a breakdown of your potential savings.

Who is this calculator for?

The Bi-Weekly Payment Calculator is most useful if you:

  • Are considering a bi-weekly payment plan and would like to establish how much you stand to save
  • Want to compare the amount of interest you will pay between monthly repayments and bi-weekly payments
  • Are in a strong enough financial position to make an extra payment each year.

Example: Bi-weekly payment savings

For example, a fixed-rate mortgage of $120,000 at 5% interest over 25 years will require a monthly repayment of $701.51. A bi-weekly payment would be half of that = $350.76. Over the course of a year you will make 26 payments of $350.76, totalling $9,120 – whereas with 12 standard monthly payments you would pay only $8,418. This means the debt will be fully paid off within 21.5 years instead of 25, netting you a $14,610 saving on interest payments.

If bi-weekly payments save so much money, why doesn’t everyone use them?

When you make bi-weekly payments, there will be two months a year where you have to come up with the extra money it takes to make that third half-payment. For that reason, bi-weekly payments often work best for people who are paid on a weekly or bi-weekly basis, rather than once or twice a month.