Bi-Weekly vs. Monthly Loan Calculator
Compare payment options to see how much you can save with bi-weekly payments
| Payment # | Bi-Weekly Date | Bi-Weekly Payment | Monthly Date | Monthly Payment |
|---|
Key Insights
Bi-Weekly Payments: 26 payments per year (equivalent to 13 monthly payments)
Monthly Payments: 12 payments per year
By making bi-weekly payments, you effectively make one extra monthly payment each year,
which reduces your principal faster and saves you interest over the life of the loan.
1. Introduction
This calculator helps borrowers compare bi-weekly (every 2 weeks) and monthly loan payment schedules to determine:
Total interest savings
Loan payoff timeline acceleration
Payment frequency impact on budget
2. Key Differences
| Feature | Bi-Weekly | Monthly |
|---|---|---|
| Payments Per Year | 26 (52 weeks ÷ 2) | 12 |
| Equivalent Monthly | Higher effective payment | Standard payment |
| Interest Savings | Significant (extra payment effect) | Baseline |
| Payoff Period | Shorter (typically 4-5 years earlier on 30-yr mortgage) | Full term |
3. Calculation Methodology
Bi-Weekly Payment Formula
Bi-weekly Payment = Monthly Payment × 12 ÷ 26
This results in effectively 13 monthly payments per year instead of 12.
Interest Savings Example
$300,000 mortgage @ 4% for 30 years
Monthly: $1,432
Bi-weekly: $1,432 × 12 ÷ 26 = $661
Results:
Payoff in 25.5 years instead of 30
$48,000 interest saved
4. Calculator Inputs
Loan amount ($)
Interest rate (%)
Loan term (years)
Payment start date
Payment type selection (bi-weekly/monthly)
5. Output Comparison
| Metric | Monthly | Bi-Weekly | Savings |
|---|---|---|---|
| Payment Amount | $1,432 | $661 | - |
| Annual Payments | $17,184 | $17,186 | - |
| Total Interest | $215,608 | $167,459 | $48,149 |
| Payoff Date | Jan 2053 | Jul 2048 | 4.5 years |
6. When Bi-Weekly Wins
Paid weekly/biweekly (matches paycheck schedule)
Want faster equity building
Can afford slightly higher effective payments
Looking for automatic savings
7. When Monthly Wins
Need predictable budgeting
Employer doesn't offer payroll deduction
Prefer simpler payment tracking
8. Advanced Considerations
Payment processing fees (some lenders charge for bi-weekly)
Amortization schedule differences
Impact of occasional 3-payment months (bi-weekly)
9. Try It Yourself
Sample Calculation:
Loan: $250,000
Rate: 3.5%
Term: 30 years
Results:
Bi-weekly saves $32,000 and pays off 4 years early
Creates automatic 13th payment each year