Interest Saved = Original - New with Biweekly + Extra
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The Biweekly With Extra Payment Calculator helps you understand how making biweekly payments (half your monthly payment every two weeks) plus additional extra payments can save you money on interest and reduce your loan term.
The calculator uses the formula:
Where:
Explanation: By making biweekly payments (26 half-payments per year instead of 12 full payments), you effectively make one extra monthly payment each year. Additional extra payments further reduce principal and interest.
Details: Biweekly payments can significantly reduce loan term and interest paid, especially for mortgages and other large loans. The effect is more pronounced when combined with extra payments.
Tips: Enter your loan amount, interest rate, and term. Add any planned extra payment amount. All values must be valid (positive numbers).
Q1: Why does biweekly save money?
A: You make 26 half-payments per year (equivalent to 13 monthly payments) instead of 12, paying down principal faster.
Q2: How much can I save?
A: Savings depend on loan amount, term, and interest rate. On a 30-year mortgage, biweekly can save thousands and shorten term by 4-8 years.
Q3: Are there drawbacks to biweekly?
A: Some lenders charge fees for biweekly programs. You can achieve similar results by making extra principal payments monthly.
Q4: What's better - biweekly or extra payments?
A: The combination is most effective, but even small extra payments make a big difference over time.
Q5: Can I set up true biweekly payments?
A: Many lenders offer biweekly programs, or you can make half-payments every two weeks yourself.