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Biweekly vs Monthly Mortgage

Interest savings from paying half-monthly every two weeks.

By going biweekly you save
$116,342
and pay off 5.8 years early

Monthly

Payment: $2,528
Total interest: $510,178
Payoff: 30.0 years

Biweekly (½ × 26)

Payment: $1,264
Total interest: $393,836
Payoff: 24.2 years

Biweekly payments work because there are 26 biweekly periods in a year, equivalent to 13 monthly payments. That extra payment goes straight to principal and shaves years off the term. Watch out: some lenders charge a fee or hold the funds. The DIY version is to make one extra principal payment a year, free.

About

Enter loan amount, rate, and term. Compare a normal monthly schedule against biweekly payments (half the monthly amount, every two weeks = 26 payments = 13 monthly equivalents per year). See total interest saved and how many years the payoff moves up.

How to use

  1. Enter loan amount, rate, and term.
  2. Compare biweekly vs monthly.

FAQ

Do I have to use the lender's biweekly program?+

No. The DIY version is making one extra principal payment per year. Same effect, no fees, and you don't need lender cooperation. Some lenders charge enrollment fees or hold biweekly funds in a sweep account; that defeats the point.