APR Desk
APR Desk · Schedule

Biweekly payment calculator

Half the monthly payment, twenty-six times a year

Paying half of the monthly installment every two weeks is not the same as paying twice a month. Twenty-six half-payments equal thirteen full payments in a year, so one extra payment lands on the loan. This page builds the standard monthly payment, cuts it in half, and applies that half at a rate of APR divided by 26.

Inputs

Result

Fill in the fields and press Calculate.

Disclaimer: A model of 26 half-payments. Your servicer's posting calendar controls the real payoff date.

How to use

  1. Enter the amount borrowed, the APR, and the term the monthly loan would have used.
  2. Press Calculate. The hero is how many years the biweekly schedule takes.
  3. Compare the two interest lines. One is this biweekly model. The other is the ordinary monthly schedule.
  4. Treat the year count as a model. A lender's due dates can sit a few days off this calendar.

How it's calculated

The monthly payment uses the standard formula: principal × r × (1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12 and n = years × 12, rounded to a whole number of months.

Each biweekly period charges interest at APR ÷ 26 and applies half of that monthly payment. The loop stops when the balance is gone, or it reports an error if the half-payment cannot finish inside the original term.

Worked example

A $200,000 loan at 6 percent for 30 years has a monthly payment of about $1,199.10. Half of that is $599.55. Applied 26 times a year, the model finishes in 638 periods, about 24.54 years. Biweekly interest is about $182,052. The monthly schedule's interest is about $231,676. The difference is about $49,624.

Assumptions

Level payments, a fixed APR, and no extra fees. The monthly interest comparison uses the same original term with no extra monthly payments. A servicer that simply drafts half a payment on a different calendar can post a different total.

FAQ

Why is this faster than paying twice a month?

Twice a month is 24 half-payments, which equals 12 full payments. Every two weeks is 26 half-payments, which equals 13 full payments.

Is the interest savings guaranteed by my lender?

No. This is arithmetic on the rate and the payment you typed. The note on the result says a lender calendar can differ.

What if the half-payment cannot finish the loan?

The page stops and says so. That happens if the rate and the term make half of the monthly payment too small to catch the balance.

Does this replace the extra-payment page?

No. Extra payment adds a dollar amount on top of a monthly bill. This page changes the cadence to 26 half-payments.

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