§ Calculator · Housing

Bi-weekly payment savings

What this is

Switching to accelerated bi-weekly payments slashes total interest.

The trick: accelerated bi-weekly pays half the monthly amount every two weeks. There are 26 fortnights in a year vs 24 in monthly-divided-by-two — so you make the equivalent of 13 monthly payments instead of 12. That extra payment goes directly to principal.

·Non-accelerated bi-weekly: monthly × 12 ÷ 26. Same total per year as monthly.
·Accelerated bi-weekly: monthly ÷ 2. Total per year = monthly × 13.
·Result: same principal, but you finish 2-4 years earlier and save tens of thousands.

Principal (CAD)Posted rate (%)Amortization (years)

Bi-weekly payment

$1,453

Months saved

41 (3.4 yr)

Interest saved

$58,617

Base term

25.0 yr

Accel term

21.6 yr

Base total interest

$371,554

Accelerated bi-weekly is the same as adding 1/12th of your monthly payment to every month as extra principal. The math is identical; the framing makes it psychologically easier.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.