Biweekly Payment Calculator
By using this biweekly payment calculator, you can see how splitting your monthly payments into smaller, biweekly ones helps you pay off your loan faster and save on interest.
Biweekly Payment Calculator
Bi-Weekly Payment Results & Overview
Bi-weekly Payment:
Total Payment:
Total Interest:
| Year/Bi-weekly | Payment | Principal | Interest | Remaining Balance |
|---|
This calculator also provides a detailed amortization schedule, breaking down each payment into principal and interest, helping you to understand the progress of your loan repayment. It’s a very useful resource for planning and budgeting loan payments effectively.
How to Calculate Biweekly Payments
Understanding how biweekly payments work can help you save on interest and pay off your loan faster. Biweekly payments are made every two weeks, allowing you to make 26 payments a year. This extra payment helps reduce your loan term and the total interest paid over time.
Step-by-Step Process for Calculating Biweekly Payments:
Divide the Annual Interest Rate by 26.
Since biweekly payments occur 26 times a year, the first step is to divide your annual interest rate by 26 to determine the biweekly interest rate.
Multiply Your Loan Term by 26.
Next, multiply the number of years in your loan term by 26. This gives you the total number of biweekly payments you’ll make over the life of the loan.
Use the Biweekly Payment Formula.
Plug your loan amount, biweekly interest rate, and number of payments into the biweekly payment formula:
P = (L * (r / 26)) / (1 – (1 + (r / 26))^(-n * 26))
Where:
P= Biweekly paymentL= Loan amount (principal)r= Annual interest rate (decimal form, e.g., 5% = 0.05)n= Loan term in years