Important Information About Biweekly Payments:

This calculator illustrates potential savings if a biweekly payment plan results in one extra monthly payment applied to your loan principal each year (i.e., making half of your standard monthly payment every two weeks results in 26 half-payments, or 13 full monthly payments, annually).

• Check with Your Lender: Before adopting a biweekly payment strategy for your personal loan, it's crucial to confirm if your lender accepts biweekly payments and understand how they process them.
• Principal Application: Ensure any extra amount paid is applied directly to the principal balance to achieve the accelerated payoff and interest savings shown.
• Potential Fees: Inquire about any fees associated with setting up or using a biweekly payment plan, as these could offset potential savings. Some third-party services that offer biweekly payments charge fees.
• DIY Alternative: You can often achieve similar results by making one extra monthly payment yourself each year directly to the lender (clearly marked for principal reduction), or by adding a little extra (e.g., 1/12th of a payment) to each of your regular monthly payments, ensuring your lender applies these extra funds correctly to the principal.

This tool is for illustrative purposes only and does not guarantee savings or lender acceptance of specific biweekly plans.