Biweekly and Extra Payment Mortgage Calculator

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Mortgage Calculator

Calculate your mortgage payments and see how bi-weekly payments and extra payments can save you money and time.

Monthly Bi-Weekly (Accelerated)

Your Mortgage Details

$0.00

$0.00

0 Years

$0.00

Understanding the Bi-Weekly and Extra Payment Mortgage Calculator

A mortgage is often the largest financial commitment a person will make. While monthly payments are standard, understanding how different payment strategies can impact your loan term and overall interest paid is crucial. This calculator helps you visualize the benefits of making bi-weekly (accelerated) payments or adding extra principal payments to your mortgage.

How It Works:

The calculator uses standard mortgage amortization formulas, adjusted for accelerated bi-weekly payments and additional principal contributions.

1. Standard Monthly Payment Calculation:

The initial monthly payment is calculated using the standard mortgage formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] Where:

  • M = Monthly Payment
  • P = Principal Loan Amount
  • i = Monthly Interest Rate (Annual Rate / 12)
  • n = Total Number of Payments (Loan Term in Years * 12)

2. Bi-Weekly (Accelerated) Payment Calculation:

An "accelerated" bi-weekly payment plan means you pay half of your standard monthly payment every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which equals 13 full monthly payments annually (instead of 12). This extra payment per year goes directly towards the principal, significantly shortening the loan term and reducing total interest paid. The bi-weekly payment amount is calculated as: (Standard Monthly Payment / 2).

3. Extra Principal Payment Calculation:

When you add an extra monthly payment (or a portion of it to your bi-weekly payments), that additional amount is applied directly to the principal balance after the regular interest for the period has been paid. This also accelerates the principal reduction, leading to a shorter loan term and less interest paid over time.

4. Amortization Simulation:

The calculator then simulates the loan's amortization schedule, incorporating the chosen payment frequency and any extra payments. It tracks the principal and interest paid with each payment, adjusting the balance and interest calculation for the next period. This simulation continues until the loan balance reaches zero.

Use Cases:

  • Aggressive Debt Reduction: See how quickly you can pay off your mortgage by making extra payments.
  • Financial Planning: Determine how much interest you can save over the life of the loan.
  • Budgeting: Understand the impact of slightly higher, but less frequent, payment amounts (bi-weekly vs. monthly).
  • Early Payoff Goals: Set and track progress towards paying off your home before the official loan term ends.

By using this calculator, you can make informed decisions about your mortgage payments to achieve your financial goals faster.

function calculateMortgage() { var principal = parseFloat(document.getElementById('loanAmount').value); var annualRate = parseFloat(document.getElementById('annualInterestRate').value); var years = parseInt(document.getElementById('loanTermYears').value); var extraPayment = parseFloat(document.getElementById('extraMonthlyPayment').value); var frequency = document.getElementById('paymentFrequency').value; // Input validation if (isNaN(principal) || principal <= 0 || isNaN(annualRate) || annualRate <= 0 || isNaN(years) || years <= 0 || isNaN(extraPayment) || extraPayment 0) { currentMonth++; var interestForPeriod = tempBalance * monthlyRate; simulatedInterest += interestForPeriod; var principalPaidThisPeriod; var paymentPortion; if (frequency === 'biweekly') { // For bi-weekly, we simulate 26 payments a year. // If currentMonth is even, it's the second payment of the month. // We check how many actual bi-weekly payments have occurred. var paymentsMadeSoFarInYear = Math.floor((currentMonth – 1) / 2); var extraPaymentPortionThisPeriod = (extraPayment / 2); // Make sure we don't overpay in the last payment if (tempBalance + interestForPeriod < (standardMonthlyPayment / 2) + extraPaymentPortionThisPeriod) { paymentPortion = tempBalance + interestForPeriod; } else { paymentPortion = (standardMonthlyPayment / 2) + extraPaymentPortionThisPeriod; } principalPaidThisPeriod = paymentPortion – interestForPeriod; simulatedTotalPaid += paymentPortion; } else { // monthly // Make sure we don't overpay in the last payment if (tempBalance + interestForPeriod < actualPaymentAmount) { paymentPortion = tempBalance + interestForPeriod; } else { paymentPortion = actualPaymentAmount; } principalPaidThisPeriod = paymentPortion – interestForPeriod; simulatedTotalPaid += paymentPortion; } tempBalance -= principalPaidThisPeriod; // If the balance is very close to zero, set it to zero to avoid tiny negative balances if (tempBalance -0.01) { tempBalance = 0; } // If we have a balance left but the next payment would clear it, // adjust the last payment accordingly to avoid overshooting. if (tempBalance > 0 && tempBalance + (tempBalance * monthlyRate) 0 && tempBalance + (tempBalance * monthlyRate) < (standardMonthlyPayment / 2) + (extraPayment / 2) && frequency === 'biweekly') { actualPaymentAmount = tempBalance + (tempBalance * monthlyRate); } if(tempBalance 0 ? calculatedLoanTermYears + " years " + calculatedLoanTermMonthsRemainder + " months" : calculatedLoanTermMonths + " months"; if (calculatedLoanTermMonths === 0) loanPaidOffInOutput = "0"; // Handle case where input is 0 years or similar // For bi-weekly, the actual number of payments is number of bi-weekly periods. // The total payments count should reflect actual payment instances. totalPaymentsCount = calculatedLoanTermMonths; // This counts the number of payment periods. document.getElementById('totalPaymentsOutput').innerText = formatCurrency(standardMonthlyPayment.toFixed(2)); document.getElementById('totalInterestOutput').innerText = formatCurrency(simulatedInterest.toFixed(2)); document.getElementById('loanPaidOffInOutput').innerText = loanPaidOffInOutput; document.getElementById('totalPaidOutput').innerText = formatCurrency(simulatedTotalPaid.toFixed(2)); } function formatCurrency(amount) { var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2, }); return formatter.format(amount); } // Initial calculation on page load document.addEventListener('DOMContentLoaded', calculateMortgage);

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