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Formula for Bi-Weekly Payment on Monthly Loan

asked 2016-08-03 17:47:54 +0100

jmadero.dev gravatar image

Hi All,

I'm trying to figure out the formula for a mortgage where the interest is monthly but you make two equal payments every other week.

Simple example: $1000 principal 1 year 1% interest

Using PMT it's super easy to solve the payments and from there I've made an amortization schedule. The payments on that loan would be $83.79/month for 12 payments.

Now I want to do an amortization table if you were to make payments of 1/2 of that amount ($41.885) every other week. Here is basically what I want it to look like at the end: http://www.mtgprofessor.com/calculato...

Thanks in advance

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answered 2016-08-03 21:18:54 +0100

mark_t gravatar image

For the end of each payment period calculate the new balance from the previous balance minus the payment plus the interest for that period.

Attached example.

C:\fakepath\Untitled 4.ods

You might need to adjust this to round the payment of each period to the nearest cent.

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Asked: 2016-08-03 17:47:54 +0100

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Last updated: Aug 03 '16