Biweekly vs monthly mortgage repayments
What changes with biweekly repayments
Biweekly schedules split your monthly amount into two equal payments every two weeks. There are 26 half payments in a typical year which equals 13 full payments. That extra full payment reduces principal sooner and lowers interest across the loan.
Worked examples at 6.25% with a $500k loan
Assume a $500,000 loan, 30 year term, and a rate of 6.25 percent.
- Monthly schedule: 12 full payments each year and more days for interest to accrue between payments.
- Biweekly schedule: 26 half payments each year, principal falls a little sooner, so compounding has less time to work.
The result is a shorter effective term and lower total interest. The exact saving depends on your rate and remaining term.
Interest saved at different terms
Higher rates and longer remaining terms benefit more from biweekly payments because the extra reduction in principal happens when interest costs are larger. On a new 30 year loan the time saved can be a few years. On a near finished loan the effect is smaller.
When it is not worth it
- Fees to switch or to process extra payments can remove the benefit.
- Some lenders hold each half payment and only credit your loan once the second half arrives.
- If cash flow is tight a biweekly schedule may not suit your pay cycle.
How to simulate it in our calculator
- Open the Loan Repayment Calculator or the Mortgage Repayment Calculator.
- Enter your loan amount, rate, and term.
- Record the base total interest and payoff date.
- Simulate biweekly by adding the equivalent of one extra monthly payment across the year. You can model it as a small extra amount each month or a single annual lump sum.
- Compare total interest and time to clear the loan.
See more strategies in how to pay off your mortgage faster using extra payments.