Your result
What your result means
Your monthly payment is $1,896.20, or $22,754 a year. Paying $948.10 every two weeks means 26 payments, or $24,651 a year — one extra monthly payment. Applied to principal, that pays off the loan in 24 years 2 months instead of 30 years, saving 5 years 10 months and $87,259 in interest.
The math
Formula and sources
Biweekly payment = M ÷ 2 Paid per year = 26 × (M ÷ 2) = 13 × M Model: the 13th payment is credited as extra principal, M ÷ 12 per month
- M
- monthly principal-and-interest payment
- P
- amount borrowed (price minus down payment)
- r
- monthly interest rate = annual rate ÷ 12
- n
- number of monthly payments = years × 12
Most servicers hold half payments and post them monthly, so the benefit comes from the extra payment rather than from more frequent compounding. We model it that way, which gives a slightly conservative estimate.
Sources we checked this against
- 1Loan Estimate sample H-24(B), fixed-rate loanConsumer Financial Protection Bureau · files.consumerfinance.gov
- 2A Consumer's Guide to Mortgage RefinancingsFederal Reserve Board · federalreserve.gov
- 3PMT function (payment formula and examples)Microsoft Support · support.microsoft.com
Formula last checked 2026-11-04. Found an error? Tell us and we will fix it.
Step by step
Two worked examples
CFPB sample loan
Biweekly payment
$380.89
- Loan amount
- $162,000
- Interest rate
- 3.875%
- Loan term
- 30 years
The CFPB sample payment of $761.78 becomes $380.89 every two weeks. The loan ends in 26 years and saves $17,032.
Higher-rate loan
Biweekly payment
$997.96
- Loan amount
- $300,000
- Interest rate
- 7%
- Loan term
- 30 years
At 7% the monthly payment is $1,995.91. Biweekly payments of $997.96 finish the loan in 23 years 9 months — 6 years 3 months early — and save $102,425, because a higher rate makes each extra dollar worth more.
| Result | Example 1 | Example 2 |
|---|---|---|
| Biweekly payment | $380.89 | $997.96 |
| Time saved | 4 years | 6 years 3 months |
| Interest saved | $17,032 | $102,425 |
Questions
Frequently asked questions
Should I pay a company to set up biweekly payments?
Usually not. Some third-party programs charge setup or per-payment fees that eat into the savings. You can get the same effect free by adding one-twelfth of your payment as extra principal each month.
Does my lender have to accept biweekly payments?
Not necessarily. Ask your servicer how partial payments are handled. If they hold half payments in suspense until a full payment arrives, the result matches this calculator.
Is biweekly the same as twice a month?
No. Twice a month is 24 half payments a year — exactly 12 full payments, so no extra principal. Every two weeks is 26 half payments, which is where the 13th payment comes from.