A biweekly mortgage plan splits your monthly payment in half and collects it every two weeks. Because there are 52 weeks in a year, you make 26 half-payments — the equivalent of 13 full monthly payments instead of 12. That one extra payment a year goes straight to principal, and because mortgage interest compounds on the remaining balance, the effect snowballs: you finish years early and save a five-figure sum in interest on a typical loan. This calculator compares your standard monthly schedule against the biweekly plan side by side, showing the new payoff date, the years saved and the total interest avoided.
How biweekly payments work
Your lender (or a third-party service) debits half the monthly payment every 14 days. Twelve of the half-payments cover the normal year; the two leftover half-payments form the extra full payment. Every extra dollar reduces the principal, so the next month's interest is computed on a smaller balance.
Example
$350,000 at 6.5% for 30 years. The standard payment is about $2,212 a month, with roughly $446,000 in total interest. On a biweekly plan the loan is paid off in about 24 years and 5 months, saving around $97,000 in interest — nearly five and a half years early.
What to watch for
Some lenders charge setup fees for biweekly plans or simply hold the first half-payment until the second arrives, which blunts the benefit. You can get the same effect free by dividing one monthly payment by 12 and adding that amount to each payment yourself — just confirm your lender applies extra amounts to principal, not to future payments.
Frequently asked questions
How much faster do biweekly payments pay off a mortgage?
On a typical 30-year loan, about 5–6 years faster. The exact saving depends on your rate and balance — higher rates make the biweekly advantage bigger.
Do all lenders offer biweekly mortgage payments?
No. Many do not, and some third-party biweekly services charge fees. The free alternative is adding 1/12 of your payment to each monthly payment, earmarked for principal.
Is biweekly better than one extra payment a year?
They are mathematically almost identical. Biweekly just automates it: 26 half-payments equal 13 full monthly payments.
Does biweekly help on a 15-year mortgage?
Less dramatically, because there is less interest to avoid. It still shortens the term — usually by about 2 years on a 15-year loan.