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This calculator will show you how much you will save if you make 1/2 of your loan payment every two weeks instead of making a full loan payment once a month. In effect, you will be making one extra loan payment per year -- without hardly noticing the additional cash outflow. But, as you're about to discover, you will certainly notice the increased cash flow that will occur when you pay your loan off well ahead of schedule!
Caution: Most banks will only credit payments once a month. The only time there are exceptions is when someone has a true, blue bi-weekly loan originated by a lender (they are few and far between). Unless you are CERTAIN that the bank will not screw things up with those bi-weekly payments, we would not advise you to go this way. Instead, we recommend that you stick with your monthly payment schedule, but each month when you send your regular payment, include an additional amount equal to 1/12 of one payment. Write a separate check for this amount and designate it "Principal Prepayment." They will accept the additional amount because you are paying more than is required. They will not refuse to accept it, nor will they charge you a processing fee. At the end of a year you will have made the equivalent of 13 monthly payments (the same as 26 bi-weekly payments) and the effect will be nearly the same as making a one-half payment every two weeks.
Instructions: Enter your loan's principal balance, monthly payment amount and annual interest rate and then click on the "Compute" button.
Note: Other than decimal points, do not enter any other non-numeric characters (commas, dollar signs, etc.) in the middle two entry boxes. Doing so will cause an error (like showing zeros).
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