Biweekly Payment worksheet

1. Interest saved: $135,240.49

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 420 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$300,000.00}\times 0.00566667}{1-{\left(1+0.00566667\right)}^{\mathrm{-420}}}$$=\mathrm{\$1,874.67}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,874.67}}{2}$$=\mathrm{\$937.34}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,874.67}\times 420-\mathrm{\$300,000.00}$$=\mathrm{\$487,362.00}$

4. When the lender holds the halves and applies them monthly, 26 halves a year work out to the regular payment plus one-twelfth extra each month

   $\mathrm{\$1,874.67}+\frac{\mathrm{\$1,874.67}}{12}$$=\mathrm{\$2,030.89}$

5. Apply that bigger payment each month. This is how many months it takes to pay off the loan

   $\mathrm{months}$$=322\text{\hspace{0.17em}= 26 years 10 months}$

6. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$487,362.00}-\mathrm{\$352,121.51}$$=\mathrm{\$135,240.49}$

2. Interest saved: $50,730.38

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 312 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$240,000.00}\times 0.00533333}{1-{\left(1+0.00533333\right)}^{\mathrm{-312}}}$$=\mathrm{\$1,580.67}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,580.67}}{2}$$=\mathrm{\$790.34}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,580.67}\times 312-\mathrm{\$240,000.00}$$=\mathrm{\$253,170.48}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=560\text{\hspace{0.17em}≈ 21 years 7 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$253,170.48}-\mathrm{\$202,440.10}$$=\mathrm{\$50,730.38}$

3. Interest saved: $109,849.97

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 432 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$300,000.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-432}}}$$=\mathrm{\$1,696.73}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,696.73}}{2}$$=\mathrm{\$848.37}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,696.73}\times 432-\mathrm{\$300,000.00}$$=\mathrm{\$432,988.13}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=735\text{\hspace{0.17em}≈ 28 years 4 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$432,988.13}-\mathrm{\$323,138.16}$$=\mathrm{\$109,849.97}$

4. Interest saved: $49,351.39

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 384 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$225,000.00}\times 0.00441667}{1-{\left(1+0.00441667\right)}^{\mathrm{-384}}}$$=\mathrm{\$1,217.98}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,217.98}}{2}$$=\mathrm{\$608.99}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,217.98}\times 384-\mathrm{\$225,000.00}$$=\mathrm{\$242,705.49}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=687\text{\hspace{0.17em}≈ 26 years 6 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$242,705.49}-\mathrm{\$193,354.10}$$=\mathrm{\$49,351.39}$

5. Interest saved: $130,042.41

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 312 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$300,000.00}\times 0.0075}{1-{\left(1+0.0075\right)}^{\mathrm{-312}}}$$=\mathrm{\$2,492.17}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$2,492.17}}{2}$$=\mathrm{\$1,246.09}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$2,492.17}\times 312-\mathrm{\$300,000.00}$$=\mathrm{\$477,557.08}$

4. When the lender holds the halves and applies them monthly, 26 halves a year work out to the regular payment plus one-twelfth extra each month

   $\mathrm{\$2,492.17}+\frac{\mathrm{\$2,492.17}}{12}$$=\mathrm{\$2,699.85}$

5. Apply that bigger payment each month. This is how many months it takes to pay off the loan

   $\mathrm{months}$$=240\text{\hspace{0.17em}= 20 years}$

6. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$477,557.08}-\mathrm{\$347,514.67}$$=\mathrm{\$130,042.41}$

6. Interest saved: $146,602.45

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 360 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$400,000.00}\times 0.006}{1-{\left(1+0.006\right)}^{\mathrm{-360}}}$$=\mathrm{\$2,715.15}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$2,715.15}}{2}$$=\mathrm{\$1,357.58}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$2,715.15}\times 360-\mathrm{\$400,000.00}$$=\mathrm{\$577,455.02}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=613\text{\hspace{0.17em}≈ 23 years 7 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$577,455.02}-\mathrm{\$430,852.57}$$=\mathrm{\$146,602.45}$

7. Interest saved: $94,683.10

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 336 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$300,000.00}\times 0.006}{1-{\left(1+0.006\right)}^{\mathrm{-336}}}$$=\mathrm{\$2,078.50}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$2,078.50}}{2}$$=\mathrm{\$1,039.25}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$2,078.50}\times 336-\mathrm{\$300,000.00}$$=\mathrm{\$398,376.82}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=581\text{\hspace{0.17em}≈ 22 years 5 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$398,376.82}-\mathrm{\$303,693.72}$$=\mathrm{\$94,683.10}$

8. Interest saved: $37,007.38

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 336 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$300,000.00}\times 0.00375}{1-{\left(1+0.00375\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,571.94}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,571.94}}{2}$$=\mathrm{\$785.97}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,571.94}\times 336-\mathrm{\$300,000.00}$$=\mathrm{\$228,171.43}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=625\text{\hspace{0.17em}≈ 24 years 1 month}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$228,171.43}-\mathrm{\$191,164.05}$$=\mathrm{\$37,007.38}$

9. Interest saved: $113,683.53

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 432 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$375,000.00}\times 0.00458333}{1-{\left(1+0.00458333\right)}^{\mathrm{-432}}}$$=\mathrm{\$1,995.52}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,995.52}}{2}$$=\mathrm{\$997.76}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,995.52}\times 432-\mathrm{\$375,000.00}$$=\mathrm{\$487,064.19}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=751\text{\hspace{0.17em}≈ 28 years 11 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$487,064.19}-\mathrm{\$373,380.67}$$=\mathrm{\$113,683.53}$

10. Interest saved: $48,616.76

1. Find your regular monthly payment. A standard formula gives the one amount that pays off the balance P in 384 months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$350,000.00}\times 0.0035}{1-{\left(1+0.0035\right)}^{\mathrm{-384}}}$$=\mathrm{\$1,658.57}$

2. Halve it for the biweekly payment. You make it 26 times a year, which adds up to 13 monthly payments instead of 12

   $\frac{\mathrm{\$1,658.57}}{2}$$=\mathrm{\$829.29}$

3. Find the interest on the regular schedule: all the monthly payments added up, minus what you owe

   $\mathrm{\$1,658.57}\times 384-\mathrm{\$350,000.00}$$=\mathrm{\$286,891.86}$

4. Every two weeks, add interest at the yearly rate ÷ 26, then take off the half payment. Repeat until the loan is paid off; this is how many payments it takes

   $\mathrm{payments}$$=710\text{\hspace{0.17em}≈ 27 years 4 months}$

5. Subtract the biweekly plan's interest from the regular plan's interest to see what you save

   $\mathrm{\$286,891.86}-\mathrm{\$238,275.10}$$=\mathrm{\$48,616.76}$