Business Loan Refinance Calculator with Bi-Weekly Payments
This calculator helps business owners evaluate refinancing an existing loan and the effect of switching to bi-weekly payments. It compares periodic payments, total interest, and estimates how long it takes to recover refinance fees (break-even).
Use the simulator to enter your current loan details and a refinance offer. You can select monthly or bi-weekly payment schedules and choose whether to include closing fees in the financed principal.
Side-by-side comparison of your current loan and a proposed refinance. Supports monthly or bi-weekly schedules, optional inclusion of fees in the financed amount, and extra periodic payments.
Inputs
Results
Current periodic payment
$3,346.56
Refinance periodic payment
$1,222.78
Total interest remaining (current)
$71,269.58
Total interest (refinance)
$67,922.13
Estimated interest savings
$3,347.45
Change in periodic payment
-$2,123.78
Break-even time (years)
0.0543
| Output | Value | Unit |
|---|---|---|
| Current periodic payment | $3,346.56 | currency |
| Refinance periodic payment | $1,222.78 | currency |
| Total interest remaining (current) | $71,269.58 | currency |
| Total interest (refinance) | $67,922.13 | currency |
| Estimated interest savings | $3,347.45 | currency |
| Change in periodic payment | -$2,123.78 | currency |
| Break-even time (years) | 0.0543 | years |
Visualization
Methodology
Payments are calculated using standard amortization formulas: periodic_rate = APR / payments_per_year; payment = (periodic_rate * principal) / (1 - (1+periodic_rate)^-n). For zero-interest scenarios the calculator divides principal evenly over the remaining payments.
When comparing schedules, the tool models true periodic compounding based on selected payments per year (monthly = 12, bi-weekly = 26). One-time fees may be added to the financed principal or treated as upfront costs depending on your input.
This tool provides estimates only. Results depend on accurate inputs and assumptions such as exact lender rounding, day-count conventions, and whether the lender accepts bi-weekly schedules as full independent amortizing payments.
Further resources
External guidance
Expert Q&A
Does bi-weekly always save interest?
Bi-weekly payments can reduce interest when they increase the effective number of payments per year (26 vs 12), which lowers outstanding principal faster. Actual savings depend on whether the lender applies payments as independent amortizing installments or simply holds surplus until a monthly payment is due.
Should I finance closing costs into the loan?
Financing fees increases the principal and may reduce short-term cash outlay but increases interest paid over time. Use the include-fees option to see the trade-off and the break-even time before fees are recovered by lower payments or interest savings.
How accurate are these estimates?
The calculator uses standard amortization math but cannot replicate lender-specific rounding, early payment processing rules, escrow, or penalty structures. Treat outputs as high-quality estimates, not guarantees.
What if my current payment frequency is different from the lender's accepted schedule?
Some lenders do not accept true bi-weekly amortization and instead credit 'extra' payments toward principal without changing the scheduled amortization. If unsure, consult your lender and consider inputting the effective payment dynamics manually.
Is the APR used the same as the periodic interest rate?
APR is annualized. The calculator converts APR to a periodic rate by dividing by the number of payment periods per year. APR may also include certain fees; verify whether your APR input is nominal or APR including fees for correct comparison.
Sources & citations
- NIST – National Institute of Standards and Technology — https://www.nist.gov/
- ISO – International Organization for Standardization — https://www.iso.org/
- IEEE Standards Association — https://standards.ieee.org/
- OSHA – Occupational Safety and Health Administration — https://www.osha.gov/
- Consumer Financial Protection Bureau — https://www.consumerfinance.gov/