Maximize your savings with our biweekly and extra payment mortgage calculator. Compare the powerful combination of accelerated bi-weekly schedules and additional principal contributions to see how fast you can become mortgage-free.
biweekly and extra payment mortgage calculator
biweekly and extra payment mortgage calculator Formula
This calculator simulates two scenarios simultaneously to determine savings. It contrasts a standard monthly amortization against your chosen accelerated strategy.
Payment = (Monthly Payment / 2) + Extra
Frequency = 26 times per year
Variables
- Standard Monthly: The baseline payment required to amortize the loan over the full term.
- Accelerated Payment: Calculated as half the monthly payment, paid every 14 days. This results in one full extra monthly payment per year (13 months’ worth).
- Extra Principal: An additional amount added to every payment to further reduce the balance.
Related Calculators
- Additional Principal Payment Calculator
- Mortgage Payoff Calculator
- Amortization Schedule
- Refinance Breakeven Calculator
What is a Biweekly and Extra Payment Mortgage Calculator?
A biweekly and extra payment mortgage calculator combines two of the most effective strategies for debt reduction.
1. Bi-weekly Payments: By splitting your monthly payment in half and paying every two weeks, you make 26 half-payments a year. This equals 13 full monthly payments annually instead of 12, painlessly reducing your principal.
2. Extra Payments: Adding even a small amount (like $50 or $100) to each payment directly attacks the principal balance, compounding the savings from the bi-weekly schedule.
How to Calculate Biweekly Savings (Example)
- Calculate Monthly: For a $300k loan at 6% over 30 years, the payment is ~$1,799.
- Determine Bi-Weekly: $1,799 / 2 = ~$899.50 paid every 2 weeks.
- Add Extra: Add $100 per payment = $999.50 every 2 weeks.
- Run Simulation: The calculator tracks the balance reduction every 14 days vs the standard monthly schedule to find the interest saved.
Frequently Asked Questions (FAQ)
Most major lenders offer bi-weekly options, but you must specifically request “Accelerated Bi-Weekly” to get the savings benefit. Standard bi-weekly (Monthly x 12 / 26) offers no interest savings.
On a typical 30-year mortgage, switching to accelerated bi-weekly payments without any extra cash can shorten the loan term by about 4 to 5 years.
Yes! This is often the most efficient way to pay off a mortgage. Since you are paying more frequently, the extra principal reduces the interest accrual even faster.
Some lenders charge a setup fee or a small transaction fee for bi-weekly drafts. Be sure to ask your servicer about any costs before switching.