diff --git a/beets/library.py b/beets/library.py
index 322c158c7..b352acece 100644
--- a/beets/library.py
+++ b/beets/library.py
@@ -858,7 +858,10 @@ class Library(BaseLibrary):
                     break
             else:
                 assert False, "no default path format"
-        subpath_tmpl = Template(path_format)
+        if isinstance(path_format, Template):
+            subpath_tmpl = path_format
+        else:
+            subpath_tmpl = Template(path_format)
 
         # Get the item's Album if it has one.
         album = self.get_album(item)
diff --git a/beets/ui/__init__.py b/beets/ui/__init__.py
index 195440f53..e2eebb738 100644
--- a/beets/ui/__init__.py
+++ b/beets/ui/__init__.py
@@ -31,6 +31,7 @@ import re
 from beets import library
 from beets import plugins
 from beets import util
+from beets.util.functemplate import Template
 
 
 # On Windows platforms, use colorama to support "ANSI" terminal colors.
@@ -56,9 +57,12 @@ PF_KEY_QUERIES = {
     'singleton': 'singleton:true',
 }
 DEFAULT_PATH_FORMATS = [
-  (library.PF_KEY_DEFAULT,      '$albumartist/$album%aunique{}/$track $title'),
-  (PF_KEY_QUERIES['singleton'], 'Non-Album/$artist/$title'),
-  (PF_KEY_QUERIES['comp'],      'Compilations/$album%aunique{}/$track $title'),
+  (library.PF_KEY_DEFAULT,
+   Template('$albumartist/$album%aunique{}/$track $title')),
+  (PF_KEY_QUERIES['singleton'],
+   Template('Non-Album/$artist/$title')),
+  (PF_KEY_QUERIES['comp'],
+   Template('Compilations/$album%aunique{}/$track $title')),
 ]
 DEFAULT_ART_FILENAME = 'cover'
 DEFAULT_TIMEOUT = 5.0
@@ -465,10 +469,12 @@ def _get_path_formats(config):
     legacy_path_format = config_val(config, 'beets', 'path_format', None)
     if legacy_path_format:
         # Old path formats override the default values.
-        path_formats = [(library.PF_KEY_DEFAULT, legacy_path_format)]
+        path_formats = [(library.PF_KEY_DEFAULT,
+                         Template(legacy_path_format))]
     else:
         # If no legacy path format, use the defaults instead.
         path_formats = DEFAULT_PATH_FORMATS
+
     if config.has_section('paths'):
         custom_path_formats = []
         for key, value in config.items('paths', True):
@@ -479,8 +485,9 @@ def _get_path_formats(config):
                 # For non-special keys (literal queries), the _
                 # character denotes a :.
                 key = key.replace('_', ':')
-            custom_path_formats.append((key, value))
+            custom_path_formats.append((key, Template(value)))
         path_formats = custom_path_formats + path_formats
+
     return path_formats
 
 
diff --git a/beetsplug/bench.py b/beetsplug/bench.py
new file mode 100644
index 000000000..779d9e015
--- /dev/null
+++ b/beetsplug/bench.py
@@ -0,0 +1,51 @@
+# This file is part of beets.
+# Copyright 2012, Adrian Sampson.
+#
+# Permission is hereby granted, free of charge, to any person obtaining
+# a copy of this software and associated documentation files (the
+# "Software"), to deal in the Software without restriction, including
+# without limitation the rights to use, copy, modify, merge, publish,
+# distribute, sublicense, and/or sell copies of the Software, and to
+# permit persons to whom the Software is furnished to do so, subject to
+# the following conditions:
+#
+# The above copyright notice and this permission notice shall be
+# included in all copies or substantial portions of the Software.
+
+from beets.plugins import BeetsPlugin
+from beets import ui
+from beets import vfs
+from beets import library
+from beets.util.functemplate import Template
+import time
+
+def benchmark(lib):
+    # Measure path generation performance with %aunique{} included.
+    lib.path_formats = [
+        (library.PF_KEY_DEFAULT,
+         Template('$albumartist/$album%aunique{}/$track $title')),
+    ]
+    start_time = time.time()
+    vfs.libtree(lib)
+    end_time = time.time()
+    print 'With %aunique:', end_time - start_time
+
+    # And with %aunique replaceed with a "cheap" no-op function.
+    lib.path_formats = [
+        (library.PF_KEY_DEFAULT,
+         Template('$albumartist/$album%lower{}/$track $title')),
+    ]
+    start_time = time.time()
+    vfs.libtree(lib)
+    end_time = time.time()
+    print 'Without %aunique:', end_time - start_time
+
+class BenchmarkPlugin(BeetsPlugin):
+    """A plugin for performing some simple performance benchmarks.
+    """
+    def commands(self):
+        def bench_func(lib, config, opts, args):
+            benchmark(lib)
+        cmd = ui.Subcommand('bench', help='benchmark')
+        cmd.func = bench_func
+        return [cmd]
diff --git a/test/test_ui.py b/test/test_ui.py
index 13d82c030..970c27e56 100644
--- a/test/test_ui.py
+++ b/test/test_ui.py
@@ -503,7 +503,9 @@ class ConfigTest(unittest.TestCase):
 
     def test_paths_section_respected(self):
         def func(lib, config, opts, args):
-            self.assertEqual(lib.path_formats[0], ('x', 'y'))
+            key, template = lib.path_formats[0]
+            self.assertEqual(key, 'x')
+            self.assertEqual(template.original, 'y')
         self._run_main([], textwrap.dedent("""
             [paths]
             x=y"""), func)
@@ -753,7 +755,9 @@ class PathFormatTest(unittest.TestCase):
         pf = self._paths_for("""
             foo: bar
         """)
-        self.assertEqual(pf[0], ('foo', 'bar'))
+        key, tmpl = pf[0]
+        self.assertEqual(key, 'foo')
+        self.assertEqual(tmpl.original, 'bar')
         self.assertEqual(pf[1:], ui.DEFAULT_PATH_FORMATS)
 
 def suite():