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Business Loan Amortization Calculator with Bi-Weekly Payments

This calculator models business loan amortization for multiple payment schedules with explicit support for bi‑weekly options. It implements three common approaches: standard periodic amortization (payment computed for the chosen payments per year), true bi‑weekly amortization (26 equal payments per year), and the half‑month bi‑weekly method (monthly payment split in two).

Use the extra payment field to model additional principal paid each period. The tool reports periodic payment, total paid, total interest, and the implied payoff time under the selected method. Enter APR as the annual percentage rate provided by your lender.

Updated Nov 10, 2025

Calculates the fixed periodic payment using the effective periodic rate derived from the annual rate and compounding. Use this method when your payment schedule and compounding frequency match or you want a payment calculated for the selected payments per year.

Inputs

Results

Updates as you type

Periodic payment

$891.09

Total paid (principal + interest)

$115,841.06

Total interest

$15,841.06

Number of payments

130

Payoff time

5

OutputValueUnit
Periodic payment$891.09USD
Total paid (principal + interest)$115,841.06USD
Total interest$15,841.06USD
Number of payments130periods
Payoff time5years
Primary result$891.09

Visualization

Methodology

For accuracy we derive an effective periodic rate by converting the stated annual rate (APR) and compounding frequency into the equivalent rate for the payment interval using standard financial mathematics: r_period = (1 + APR/compounding)^(compounding/payments) - 1. The annuity payment formula is then applied to compute the fixed payment that amortizes principal over the specified number of periods.

The true bi‑weekly method assumes 26 equal payments per year and computes the payment required for that frequency and the chosen compounding. The half‑month bi‑weekly method first computes the monthly payment and then splits it; because there are typically 26 half‑monthly payments in a year this often accelerates principal reduction relative to 12 monthly payments.

This calculator does not assume special lender rounding rules, fees, escrow, or irregular first/last periods unless those are entered as adjustments. For legal or regulatory reporting, consult your lender's amortization schedule.

Worked examples

Example 1: $100,000 loan, 6% APR, 5 years, true bi‑weekly (26/year). The calculator computes the bi‑weekly payment based on 26 periods/year and reports total interest and payoff time.

Example 2: $250,000 loan, 5% APR, 10 years, half‑month bi‑weekly. The monthly payment is computed and split; 26 half‑monthly payments per year can shorten the effective term relative to monthly payments without increasing each month’s nominal payment.

Further resources

External guidance

Expert Q&A

Which bi‑weekly method should I use?

Use true bi‑weekly when your plan or lender schedules 26 equal payments every year. Use the half‑month method when you (or your payroll) pay half the monthly payment every two weeks. Results differ: true bi‑weekly sets the payment for 26 periods/year; half‑month often accelerates payoff because it typically results in paying a bit more over the same calendar year.

How do extra payments affect payoff?

Extra principal paid each period reduces outstanding balance and interest accrual, shortening payoff time and lowering total interest. This calculator includes extra_payment per period in the scheduled payment and reflects its effect on totals. For irregular extra payments, recompute the schedule with the specific timing.

What if APR or compounding is zero?

If APR is zero, the periodic payment is principal divided by total number of periods. Some formulas in the tool assume a positive rate; when APR is zero, results default to straight principal amortization. Double‑check results for a 0% APR input.

How accurate is this tool and what are its limitations?

This calculator applies standard annuity math and effective rate conversion. It does not model lender rounding conventions, irregular first/last payments, deferred interest products, fees, or escrow. For legally binding schedules and disclosures, rely on your lender's schedule and consult an accountant or attorney.

How should I verify results before making business decisions?

Cross‑check outputs with official amortization statements from your lender. Use the same APR definition and compounding frequency as the lender. For critical decisions, obtain lender-provided amortization schedules and consult financial professionals.

Sources & citations