1. What is the Biweekly Payment Formula?

The biweekly payment formula calculates how long it will take to pay off credit card debt when making payments every two weeks. This approach can help pay off debt faster than monthly payments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Principal balance ($)
• \( D \) — Biweekly payment amount ($)
• \( R \) — Monthly interest rate (APR / 12, as decimal)
• \( T \) — Time to pay off debt (months)

Explanation: The formula accounts for compound interest and the accelerated payment schedule of biweekly payments.

3. Importance of Biweekly Payments

Details: Making biweekly payments instead of monthly can significantly reduce the time to pay off debt and the total interest paid, as you effectively make one extra monthly payment each year.

4. Using the Calculator

Tips: Enter your current credit card balance, the biweekly payment amount you can afford, and your card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why are biweekly payments better than monthly?
A: Biweekly payments result in 26 half-payments per year (equivalent to 13 monthly payments), paying down principal faster and reducing interest.

Q2: What if my calculation shows "Payment too low"?
A: This means your payment isn't enough to cover the interest accruing each month. You'll need to increase your payment amount.

Q3: How accurate is this calculator?
A: It provides a good estimate but assumes fixed interest rates and consistent payments. Actual results may vary slightly.

Q4: Should I round up my payments?
A: Yes, rounding up payments (even by small amounts) can further reduce payoff time and total interest paid.

Q5: Can this be used for other types of loans?
A: While designed for credit cards, it can provide rough estimates for other high-interest debts with similar terms.