If you're curious how you could accelerate your mortgage payment and save some money, use our mortgage acceleration calculator. With this tool you can quickly check how much interest you can save by choosing accelerated bi-weekly and weekly mortgage payments or by increasing your payments.

In the following, we explain what does accelerated bi-weekly mortgage payments mean. Also, you can learn the mortgage acceleration formula to find out how to calculate accelerated bi-weekly mortgage payments.

If you would like to use a more advanced calculator, you may try our mortgage calculator with extra payments or the mortgage comparison calculator.

Also, you may check our HELOC calculator if you are specifically interested in a home equity line of credit.

What does accelerated bi-weekly mortgage payments mean?

When you opt for accelerated bi-weekly payment, you pay half of your monthly payment every 14th day.

As a result, you will make roughly one extra payment each year, which speeds up your loan's amortization and pays off the mortgage faster.

What are accelerated bi-weekly vs bi-weekly mortgage?

With the accelerated bi-weekly option, you pay half of your monthly payment every second week, resulting in one extra monthly payment in a year.

With bi-weekly payments, you will pay basically the same amount in a year as monthly payments but with different schedules. That is, your payment will be your monthly payment multiplied by 12 and then divided across 26 pay periods.

While in the United States, bi-weekly mortgage simply refers to accelerated bi-weekly payments in general, they may refer to two different repayment options elsewhere (e.g. Canada).

How to calculate accelerated bi-weekly mortgage payments?

To compute the accelerated bi-weekly payment, you need to divide the monthly payment by 2, which gives you the amount you will pay every second week. Use any online accelerated mortgage payment calculator to estimate the payments more accurately.

What is the mortgage acceleration formula?

If you would like to compute the accelerated bi-weekly or weekly payment by yourself, you need to apply the following mortgage acceleration formula:

P = ((A * i * (1 + i)n) / ((1 + i)n * 12) - 1) / w

where:

  • P - Payment;
  • A - Mortgage amount;
  • i - The periodic interest rate or equivalent rate;
  • n - The number of years; and
  • w - The payment frequency: weekly (w = 4) or bi-weekly (w = 2).

How to apply the accelerated mortgage payment calculator?

To run the mortgage acceleration calculator, you need to specify the following parameters for your mortgage loans:

1. Mortgage inputs

  • Loan amount - Either the remaining balance or, in the case of a new loan, give the original loan value.
  • Type of acceleration - The mortgage acceleration calculator offers three ways to calculate the result. The payment frequency can be accelerated bi-weekly, bi-weekly mortgage, or a monthly option with overpayment.
  • Mortgage term - The remaining or original loan term.
  • Interest rate - Yearly rate of interest or APR.
  • Mortgage points - Upfront payment as a percentage of the loan amount.
  • Upfront fee - Additional upfront payment.
  • Due date - The closest date when the monthly payment is due.
  • Compounding interest frequency - Available in the advanced mode of this accelerated mortgage payment calculator.
  • Extra payment - The amount you additionally pay in a given payment period. In other words, it is your overpayment. This parameter is also available in the advanced mode.

2. Mortgage summary

After setting all parameters, you will immediately see the results in the summary table, which you can check how the accelerated option would alter the standard monthly payment.

3. Balances and schedules

You can also follow the mortgage balances' progress in a dynamic chart and amortization table which are at the very bottom of the accelerated mortgage payoff calculator.

FAQ

How much can I accelerate a $100.000, 30- years mortgage with a 3.5% interest rate by bi-weekly repayment?

You can shorten the mortgage amortization term by 3 years and 10 months if you choose the accelerated bi-weekly payment option. If you decide to accelerate the mortgage in that way, you will make one extra monthly payment a year.

Disclaimer

You should consider the mortgage acceleration calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive useful feedback and advice.

Tibor Pal, PhD candidate
Mortgage inputs
Loan amount
$
Type of acceleration
Accelerated bi-weekly
Mortgage term
yrs
Interest rate
%
Due date
Extra payment
$
Payment summary
Payments w/o accelerationAccelerated paymentDifference
Payment$2,097.64 monthly$1,048.82 bi-weekly$174.80 more per month
Term30 years23 years and 3 months6 years and 9 months
Payoff dateOct. 26, 2052Jan. 06, 20466 years and 9 months
Total interest$455,151.67$333,044.56-$122,107.11
Total payments$755,151.67$633,044.56-$122,107.11
Display
Chart of balances
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