Bi-weekly Payment Calculator (Canadian)
This calculator shows you the possible savings by using an accelerated bi-weekly mortgage payment. Bi-weekly payments accelerate your mortgage payoff by paying 1/2 of your normal monthly payment every two weeks. By the end of each year, you will have paid the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest.
Bi-weekly Payment Calculator (Canadian) Definitions
- Accelerated weekly and bi-weekly payments
- Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated bi-weekly payment, for example, by taking your normal monthly payment and dividing it by two. Since you pay 26 bi-weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.
The accelerated weekly payment is calculated by dividing your monthly payment by four. You then make 52 weekly payments. Just like the accelerated bi-weekly payments, you are in effect paying an additional monthly payment each year.
- Mortgage amount
- The total amount for this mortgage.
- Interest rate
- The interest rate on this mortgage.
- Mortgage amortization
- The number of years over which you would repay this loan if you made your normal monthly payment. The most common amortizations for mortgages are 20 years and 25 years.