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Standard vs. Bi-Weekly

Input Information
Loan Information
Amount : ($)
Interest Rate : (%)
Length : (Years)
Your Tax Rate
Tax Rate : (%)

Financial Analysis (Switch to Plain English)
  Standard Bi-Weekly
Length : 30 Yrs 0 Mts 26 Yrs 2 Mts
Time Saved : 3 Yrs 10 Mts
Bi-Weekly Payment : - $561.31
Monthly Payment : $1,122.61 $1,216.16
Total Interests Paid : $154,140.22 $131,676.52
Interest Savings : $22,463.69
Tax Savings : $40,076.46 $34,235.90
Tax Saving Losses : $5,840.56
Total Benefit
(Int. Savings - Tax Saving Losses) : 		$16,623.13
Plain English Help (Switch to Financial Analysis)

When you set up your mortgage payment repayment plan, you can choose between a standard repayment plan or a bi-weekly repayment plan. With the standard plan, it would take you 30 years to repay the loan while a biweekly plan will take 26 years and 2 months. This will save you 3 years and 10 months. But, the savings doesn’t end there.

If you took out a $250,000.00 loan with an interest rate of 3.500% and your federal tax rate is 26.000%, you can expect to pay $1,122.61 per month, while a bi-weekly payment plan will call for a payment of $131,676.52 every other week. As a result, you will pay only $131,676.52 in interest with the bi-monthly schedule rather than $154,140.22 with the standard payment plan. While this will result in a loss of $5,840.56 in tax benefits, you will still save a total of $16,623.13 with the bi-weekly plan.

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.