This online, Biweekly Loan Payment Calculator will calculate the time and interest you will save by switching from making monthly loan payments to bi-weekly loan payments.
The results include a time and interest comparison chart along with a bar graph that visually depicts the savings.
The calculator also includes the option of adding an extra amount to your biweekly payment, either on a biweekly (fortnightly) or on a monthly basis.
Finally, you can set the calculator to show the first year or full biweekly amortization schedule, or to show no payment schedule at all. And if you choose to include one of the amortization schedules, the calculator will generate a printer friendly version for printing.
If you are simply looking for a calculator to compute the payment and interest on a new bi-weekly loan, please visit the Bi-weekly Loan Calculator.
In most cases you can save a lot of time and money by simply making 1/2 of your normal monthly loan payment every two weeks. This results in making one extra loan payment per year (13 instead of 12) without hardly noticing the difference in your cash flow.
The following mini-calc will show you how much your bi-weekly payment would be:
As you will see when using the full calculator, this small change in your loan repayment method can make a huge difference in the amount of interest you will end up paying.
But before you switch to making bi-weekly payments be sure to check with your lender to make sure they allow you pay off your loan ahead of schedule. Some of the sneaky devils just hold your extra payments and apply them based on the original monthly amortization schedule.
In case you need to convert bi-weekly payments to monthly before using the calculator, here is how I make the conversion, along with a mini calculator that will do the conversion for you:
|Example: Convert $500 bi-weekly payment to monthly equivalent.|
|Average number of days in a year ((365 x 3) + 366) ÷ 4):||365.25|
|Number of weeks in a year (365.25 ÷ 7):||52.1785714|
|Multiply biweekly payment amount by weeks/year (52.1785714 x $500):||$26,089.29|
|Monthly equivalent ($26,089.29 ÷ 12):||$2,174.11|
With that, let's use the biweekly loan payment calculator to see how much time and interest you could save if you switched to making bi-weekly payments instead of monthly payments.
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Bi-weekly payments: Making payments once every two weeks. If you have an existing loan you are making monthly payments on, simply start making 1/2 of your monthly payment every two weeks (26 half-payments per year). This results in making 13 payments per year versus the normal 12 payments and usually results in significant time and interest savings.
Principal balance owed: The current balance you owe or the beginning balance. If this is an existing loan you may need to call your lender to find out the exact amount you owe. Just ask for the current payoff amount.
Annual interest rate: The annual interest rate you are being charged. Enter as a percentage (for .06, enter 6%).
Term of the loan in months: The number of monthly payments remaining. If you want the biweekly loan payment calculator to figure the number of months for you, simply select the number of years from the drop down menu and the calculator will fill in the number of months.
Optional extra payment: If you would like to have an extra principal payment applied to the loan, choose either biweekly (fortnightly) or monthly, then enter the extra payment amount. Note that if you choose monthly, the monthly amount is applied evenly across all biweekly payments (extra amount x 12 ÷ 26).
Next payment date: If you would like the calculator to generate an amortization schedule, select the month and day, and enter the 4-digit year, of the date you will make your next biweekly payment.
Monthly result row: This row shows you the payment amount, number of months, and interest charges based on making a monthly payment.
Bi-weekly result row: This row shows you the payment amount (extra payment included if entered), number of months, and interest charges, all based on switching from a monthly loan payment to a bi-weekly loan payment.
Bi-weekly payment savings row: This row shows you the time and interest you will save by switching from a monthly loan payment to a bi-weekly loan payment, and adding an extra payment if one was entered.