Biweekly vs monthly payment calculator

Biweekly payments, and the free way to get the same result. Half a payment every fortnight is 26 half-payments a year, which is thirteen monthly payments instead of twelve. That thirteenth payment is where essentially all of the saving comes from.

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Biweekly schedule

Periods are fortnights, so 26 rows make up a year.

What is actually happening

Twenty-six half payments a year is thirteen monthly payments. That thirteenth one does nearly all the work.

There are 52 weeks in a year, so a fortnightly plan means 26 payments. At half the monthly amount that adds up to thirteen monthly payments a year rather than twelve. The fortnightly timing itself contributes very little; the extra payment does the work.

The catch worth knowing

Because the benefit is the extra payment and not the schedule, you can produce the same outcome by dividing your monthly payment by twelve and adding that to each month - free, under your own control, with nobody in the middle. If a servicer wants a setup fee or a monthly charge to run a biweekly plan, you are paying for something your bank's standing order does for nothing.

Check how payments are applied

Some servicers hold both halves and post them together at month end. If they do, the timing benefit disappears and only the thirteenth payment remains. Ask before enrolling.

Guides that explain this

Written with the same engine, so every figure agrees with the calculator.

Questions people actually ask

Does a biweekly mortgage really save money?

Yes, but not because of the fortnightly timing. Twenty-six half-payments equal thirteen monthly payments a year instead of twelve, and that extra payment is where almost all of the saving comes from.

Can I do this myself without signing up?

Yes. Divide your monthly payment by twelve and add that to every monthly payment, marked as principal. The result is very close to a biweekly plan and it costs nothing.

Is a biweekly setup fee ever worth paying?

Rarely. You are paying a third party to do what a standing order does. The one argument for it is discipline, if an automated plan is the only way you will keep it up.

Will my lender accept half payments?

Not all do, and some hold both halves and post them together at month end, which removes the timing benefit. Ask how payments are applied before enrolling.