See how much interest you'll save by making half your mortgage payment every two weeks
Enter your loan amount, interest rate and term. The calculator compares a standard monthly payment plan with a biweekly plan, where you pay half your monthly payment every two weeks — which equals 13 full payments a year instead of 12. It shows how much sooner you'll own the home and the interest you save.
Paying half the monthly amount every two weeks means 26 half-payments a year — equivalent to 13 monthly payments. The extra payment each year goes entirely to principal, compounding your savings: a 30-year mortgage paid biweekly is typically paid off several years early, saving tens of thousands in interest.
On a $320,000 mortgage at 6.5% for 30 years, the standard monthly payment is $2,023 and a biweekly plan pays $1,011 every two weeks. The biweekly schedule retires the loan years earlier than the standard plan while the extra principal payments dramatically cut total interest.
Instead of making 12 monthly payments a year, you make 26 half-payments (every two weeks). That adds up to 13 full monthly payments per year — one extra payment. Over a 30-year mortgage, that extra year's worth of payments shaves several years off your loan term and saves tens of thousands in interest. On a $320,000 loan at 6.5%, you'd save almost $80,000 and pay off about 6 years early.
It depends on your situation. If you get paid every two weeks (which most Americans do), the biweekly schedule aligns naturally with your paychecks — it doesn't feel like a big extra expense. But if you're paying a fee to enroll in your lender's biweekly program, you can achieve the same result by just making one extra mortgage payment a year on your own. Don't pay a setup fee for a service you can do yourself.
Absolutely. Most mortgages let you prepay principal at any time with no penalty. You can either divide your monthly payment by 12 and add that little bit extra each month, or just make a lump-sum extra payment whenever you have extra cash. The math is the same — you're paying down principal faster. Just make sure your lender applies the extra to principal, not to future payments.
Some third-party biweekly payment programs charge a setup fee ($200-$400) plus a per-transaction fee. That's a ripoff. You don't need a middleman — just send 13 payments a year yourself. Also, some lenders hold your half-payment until the full monthly amount accumulates, meaning they don't actually apply it to your mortgage every two weeks. Ask your lender directly how they handle biweekly payments before enrolling.
Yes. FHA, VA, and conventional loans all allow prepayment with no penalty. The biweekly strategy works the same regardless of loan type. Just confirm with your servicer that extra payments go toward principal (not escrow) and that there's no prepayment penalty — which there legally shouldn't be on any residential mortgage in the US after 2014.
This is the classic debate. If your mortgage rate is 6.5%, paying it off guarantees you a 6.5% return. If you can consistently earn more than 6.5% in the stock market over 30 years (which is historically true, but not guaranteed), investing comes out ahead. For many people, the peace of mind of being mortgage-free is worth more than the theoretical extra investment return. It's a personal decision, not a math-only decision.
Disclaimer: This calculator is for informational purposes only. Actual results may vary based on your loan terms and lender policies. Not professional financial advice. Consult your mortgage servicer for specific details.