Why use the Bi-weekly Payment Calculator?
The bi-weekly payment calculator will help you to calculate the amount of money that you will save by paying your mortgage on a bi-weekly basis instead of a monthly basis. Making one extra payment each year can shave years off your mortgage and save you thousands of dollars in interest – our calculator can tell you exactly how much you stand to save.
When you click View Report, the calculator will show a comparison between your monthly payment and the proposed bi-weekly payment. This calculator also displays the length of time it will take to repay you loan and the total interest that you will pay on a bi-weekly payment schedule compared to a monthly mortgage payment.
How to use the Bi-weekly Payment Calculator
Not sure where to start? Let us help you:
- Input your mortgage rate by using the slider or simply typing it into the box
- Enter the amount you are borrowing on your mortgage
- Choose the number of years you plan to take to repay your mortgage
- Choose from the drop-down whether you would like to calculate your savings based on a weekly or bi-weekly payment plan
- Click View Report for a breakdown of your potential savings.
Who is this calculator for?
The Bi-Weekly Payment Calculator is most useful if you:
- Are considering a bi-weekly payment plan and would like to establish how much you stand to save
- Want to compare the amount of interest you will pay between monthly repayments and bi-weekly payments
- Are in a strong enough financial position to make an extra payment each year.
Example: Bi-weekly payment savings
For example, a fixed-rate mortgage of $120,000 at 5% interest over 25 years will require a monthly repayment of $701.51. A bi-weekly payment would be half of that = $350.76. Over the course of a year you will make 26 payments of $350.76, totalling $9,120 – whereas with 12 standard monthly payments you would pay only $8,418. This means the debt will be fully paid off within 21.5 years instead of 25, netting you a $14,610 saving on interest payments! You can click "Get FREE Quote" now to find local providers offering this option and enjoy some major savings on your home loan.
If bi-weekly payments save so much money, why doesn’t everyone use them?
When you make bi-weekly payments, there will be two months a year where you have to come up with the extra money it takes to make that third half-payment. For that reason, bi-weekly payments often work best for people who are paid on a weekly or bi-weekly basis, rather than once or twice a month.