Biweekly vs Monthly Loan Payments
Switching from monthly to biweekly payments is a small change that quietly adds an extra payment per year — and saves thousands in interest. Here's how it works and when it makes sense.
Quick answer
Biweekly payments mean 26 half-payments per year = 13 full monthly equivalents = one extra payment annually. On a $300K mortgage at 6.5%, biweekly cuts ~5 years off and saves ~$60,000.
The math behind biweekly
Monthly: 12 full payments per year. Biweekly: pay half every 2 weeks. There are 52 weeks in a year, so 52/2 = 26 half-payments = 13 full monthly equivalents. That extra payment goes 100% to principal.
Side-by-side: $300K mortgage at 6.5%, 30-year
- Monthly: $1,896/mo, paid off in 30 years, total interest ~$382,500.
- Biweekly: $948 every 2 weeks (≈ $2,054/month average), paid off in ~25 years, total interest ~$320,000. Saves ~$62,500.
Other loan examples
$25K car loan at 8%, 5-year
Monthly: pays off in 60 months, $5,415 interest. Biweekly: pays off in ~54 months, ~$4,800 interest. Saves ~$615 and 6 months.
$15K personal loan at 11%, 4-year
Monthly pays off in 48 months. Biweekly in ~44 months, saves a few hundred dollars in interest.
Setting it up
- Check that your lender accepts biweekly payments and applies the extra to principal (not the next month's payment).
- Avoid third-party 'biweekly programs' that charge fees — most lenders allow this for free.
- Or simply pay 1/12 extra each month (e.g. $158/month extra on a $1,896 payment) — same effect, simpler setup.
Use the calculator
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Frequently Asked Questions
Is biweekly worth it on a small loan?
Less impactful — biweekly shines on long, large loans like mortgages. On a 5-year car loan, monthly extra payments achieve nearly the same effect.
Will my lender automatically apply extra to principal?
Sometimes no — they may hold the half-payment and only apply both halves at month-end. Always confirm and look for a 'principal-only' option.
Can I just add 1/12 to each monthly payment?
Yes — and it's simpler than biweekly. Mathematically equivalent, no third-party services needed.
Does biweekly help my credit score?
No direct effect. The monthly payment is reported the same way regardless of frequency.