Bi-Weekly Payment Calculator
This calculator shows you possible savings by using an accelerated bi-weekly mortgage
payment. Bi-weekly payments accelerate your mortgage payoff by paying 1/2 of your
normal monthly payment every two weeks. By the end of each year, you will have paid
the equivalent of 13 monthly payments instead of 12. This simple technique can shave
years off your mortgage and save you thousands of dollars in interest. Click on
the "View Report" button to see your savings!
Definitions
- Accelerated
weekly and bi-weekly payments
- Accelerated weekly
and accelerated bi-weekly payment options are calculated by taking a monthly payment
schedule and assuming there are only four weeks in a month. We calculate an accelerated
bi-weekly payment, for example, by taking your normal monthly payment and dividing
it by two. Since you would pay 26 bi-weekly payments, by the end of a year you would
have paid the equivalent of one extra monthly payment. This additional amount accelerates
your loan payoff by going directly against your loan's principal. The effect can
save you thousands of dollars in interest and take years off of your mortgage.
The accelerated weekly payment is calculated by dividing your monthly payment by
four. You would then make 52 weekly payments. Just like the accelerated bi-weekly
payments, you are in effect paying an additional monthly payment each year.
- Mortgage amount
- The total dollar
amount for this mortgage.
- Interest rate
- The interest
rate on this mortgage.
- Mortgage term
- The number of
years over which you would repay this loan if you made your normal monthly payment.
The most common terms for mortgages are 15 years and 30 years.
Information and interactive calculators are made available to you as self-help tools
for your independent use and are not intended to provide investment advice. We can
not and do not guarantee their applicability or accuracy in regards to your individual
circumstances. All examples are hypothetical and are for illustrative purposes.
We encourage you to seek personalized advice from qualified professionals regarding
all personal finance issues.
