A biweekly plan means paying half of your monthly payment every two weeks. There are 26 two-week periods in a year, so you make 26 half-payments: the same as 13 monthly payments instead of 12.
The example
$300,000, 30-year fixed at 6.5%. The monthly payment (principal and interest) is about $1,896.
| Monthly only | One extra payment a year | |
|---|---|---|
| Time to pay off | 30 years | about 24 years 2 months |
| Total interest | about $382,600 | about $295,400 |
| Interest saved | about $87,000 |
(Modelled as 1/12 of a payment added each month, which works out the same as 13 payments a year.)
You don't need a paid program
Some third-party biweekly services charge setup or per-payment fees and hold the money until the monthly due date. You can get almost the same result for free by:
- Adding 1/12 of your payment (about $158 here) to each monthly payment, marked as extra principal, or
- Making one extra payment a year, for example from a tax refund or bonus.
Check first
- Confirm your lender applies extra money to principal, not to next month's payment.
- Check for prepayment penalties (rare on most US mortgages today, but read your note).
- If you carry high-interest card debt or have no emergency fund, those usually come first.
Free tools
- Biweekly mortgage calculator: https://smartbudgetsheets.surge.sh/calculators/biweekly-mortgage-calculator/?utm_source=mataroa
- Mortgage payoff calculator: https://smartbudgetsheets.surge.sh/calculators/mortgage-payoff-calculator/?utm_source=mataroa
- Amortization calculator: https://smartbudgetsheets.surge.sh/calculators/amortization-calculator/?utm_source=mataroa
- Debt Payoff Planner, up to 8 debts (Payhip): https://payhip.com/b/PtBLU?utm_source=mataroa
- 42 free budget templates, pay what you want ($0 is fine): https://smartbudgetsheet.gumroad.com/l/ngpkrb?utm_source=mataroa
General information, not financial advice. Figures are rounded examples.