Loan Payment Frequency vs. Interest Savings Tool
Explore how different payment strategies, like biweekly payments or adding extra to your monthly payments, can potentially save you interest and shorten your loan term.
Enter Your Loan Information
Payment Strategy Comparison & Savings
Enter your loan details and click "Calculate & Compare Strategies" to view results.
Understanding Your Payment Strategy Comparison:
- Estimates Only: Calculations are based on your inputs. Actual outcomes depend on your lender's policies for applying extra payments and potentially fees.
- Biweekly Payments: This simulation assumes paying half your standard monthly payment every two weeks. This results in 26 half-payments (or 13 full monthly payments) per year, with the "13th payment" effectively applied to reduce principal over the year.
- Extra Payments: Ensure any extra payments you make are applied directly to the loan principal, not towards future interest or held for future standard payments. Clearly communicate your intent to your lender.
- Lender Policies are Key: Always verify with your lender:
- If they accept specific accelerated payment frequencies (like biweekly) or how they handle them.
- How they apply additional principal payments.
- If any fees are associated with making extra payments or using accelerated plans (some third-party biweekly services charge fees).
This tool is for illustrative purposes only and does not constitute financial advice. Always confirm details with your lender.