Biweekly mortgage calculator
What paying half every two weeks saves, and how much of the saving is one extra payment a year rather than the schedule.
An example. Your lender sets the real rate.
Interest saved by paying half every two weeks
$93,997
Paid off in 24 yr 2 mo, not 30 years · it comes to one extra payment a year, $2,023
- Monthly payment
- $2,022.62
- Every two weeks
- $1,011.31
- Interest, monthly
- $408,142
- Interest, two-weekly
- $314,146
- Saved by a twelfth extra each month
- $93,073
Twenty-six half payments make thirteen whole ones, so nearly all of the saving is one extra payment a year. The last figure shows the same extra money paid monthly, without the two-week schedule. This assumes each half is applied the day it arrives. Some servicers hold the first half until the second comes, and then only the extra payment counts. Any fee for setting it up is not included.
Questions
- Where does the saving come from?
- There are 26 two-week periods in a year, so 26 half payments make 13 whole ones. Nearly all the saving is that thirteenth payment. The calculator shows the same extra money paid monthly, so you can see how little the schedule itself adds.
- Does every lender apply the half payment straight away?
- No. Some hold the first half until the second arrives, and some charge a fee for a two-week plan. Ask how yours handles it before relying on the figure.
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