Bi-Weekly Mortgage Payment Calculator
A bi-weekly payment plan can be a powerful tool to pay off your mortgage faster. Instead of making 12 monthly payments a year, you make 26 half-payments.
How it Works:The 26 half-payments equal 13 full monthly payments. That single extra monthly payment each year is applied directly to your loan's principal, which can shave years off your mortgage and save you a significant amount in interest.
First, a standard monthly payment (M) is calculated:
$$ M = P \frac{r(1+r)^n}{(1+r)^n - 1} $$
Where:
P = Principal loan amount
r = Monthly interest rate
n = Number of payments
The calculator then determines the effect of making an extra payment of M each year.
This calculator is for informational purposes. True bi-weekly plans are set up with your lender. Some third-party services charge a fee for this. You can achieve the same result by simply adding 1/12th of your mortgage payment to each monthly payment.
See how paying every two weeks can accelerate your payoff.