1. What is Biweekly Auto Loan Amortization?

Biweekly auto loan amortization calculates how each payment is split between principal and interest when payments are made every two weeks. This schedule shows the gradual reduction of your loan balance over time.

2. How Does the Calculator Work?

The calculator uses these biweekly amortization formulas:

Where:

• \( Interest_k \) — Interest portion of k-th payment
• \( Principal_k \) — Principal portion of k-th payment
• \( Balance_k \) — Remaining balance after k-th payment
• \( r_{bi} \) — Biweekly interest rate (annual rate ÷ 26)
• \( PMT_{bi} \) — Biweekly payment amount

Explanation: Each payment first covers the interest accrued since the last payment, with the remainder going toward principal reduction.

3. Benefits of Biweekly Payments

Details: Making biweekly payments (26 per year) instead of monthly payments (12 per year) can help you pay off your loan faster and save on interest, as you're effectively making one extra monthly payment each year.

4. Using the Calculator

Tips: Enter the total loan amount, annual interest rate, and loan term in years. The calculator will show your biweekly payment amount and total interest paid over the life of the loan.

5. Frequently Asked Questions (FAQ)

Q1: How much faster will I pay off my loan with biweekly payments?
A: Typically 4-5 years faster on a 6-year loan, depending on the interest rate.

Q2: Do all lenders accept biweekly payments?
A: Not all lenders offer this option automatically - check with your lender about their policies.

Q3: How does this compare to making extra payments?
A: Biweekly payments are more systematic and easier to budget than occasional lump sums.

Q4: Will this affect my credit score?
A: No, as long as you make at least the minimum required payments on time.

Q5: Can I switch back to monthly payments later?
A: Most lenders allow you to change payment frequency, but check for any fees.