How to read the biweekly result
Compare the accelerated schedule with the standard one.
1
Enter the loan
Use the outstanding balance, rate and remaining term.
2
Check the payment
The biweekly amount is half the standard monthly payment.
3
Compare the saving
Weigh the interest saved against any lender fee for the plan.
What does this tool do?
Twenty-six half-payments add up to thirteen monthly payments a year. That extra payment goes to principal and compounds into a shorter term and lower interest.
The Formula
Accelerated payment = Monthly payment × 13 ÷ 12; interest saved = Base interest − Accelerated interestFrequently Asked Questions
Is a biweekly plan the same as an extra payment?
Effectively yes for a fixed-rate loan. The extra annual payment is what shortens the term.
Does the lender charge for this?
Some do. Setup fees or transaction charges can reduce the benefit, so compare them with the interest saved.