Biweekly Payment Calculator
The short answer: pay half your monthly payment every two weeks instead of the whole thing once a month. Twenty-six halves add up to thirteen monthly payments a year — the extra one goes straight at the balance. This calculator shows the interest saved and the earlier finish line, in dollars and months.
How this is calculated
We simulate the loan twice. Monthly: the standard amortization schedule. Biweekly: a payment of half the monthly amount lands every two weeks, interest accrues per period, and every dollar above interest cuts the balance. On the defaults — $20,000 at 9% for 60 months — the monthly plan costs $4,910 in interest; the biweekly plan costs about $4,373 and finishes roughly 5½ months early. No fees, no program to buy: the only requirement is a lender who applies payments as they arrive.
Frequently asked questions
Why do biweekly payments save money?
There are 26 two-week periods in a year, so 26 half-payments equal 13 full monthly payments — one extra payment a year lands entirely on principal. The balance falls faster, so less interest accrues and the loan ends months early.
Does my lender have to support biweekly payments?
For the full benefit, yes — the lender must apply each half-payment when it arrives. Some lenders hold partial payments until a full payment accumulates, which erases the timing benefit (though the extra annual payment still helps). Ask before you enroll, and never pay a third-party "biweekly program" fee for something you can do free.
Is biweekly the same as paying twice a month?
No. Twice a month (semi-monthly) is 24 half-payments a year — exactly 12 monthly payments, no extra. Every two weeks is 26 — that's where the extra payment comes from.