1. What is Biweekly Auto Loan Amortization?

Biweekly auto loan amortization calculates your loan repayment schedule with payments every two weeks instead of monthly. This results in 26 half-payments per year (equivalent to 13 monthly payments), which can help pay off your loan faster and reduce total interest.

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, then the remainder goes toward the principal.

3. Importance of Biweekly Payments

Details: Biweekly payments can reduce your loan term by several months and save thousands in interest compared to monthly payments, while keeping payments manageable.

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 generate a full amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: How much faster does biweekly pay off a loan?
A: Typically 4-8 months faster on a 5-year loan, saving 4-8% in total interest.

Q2: Is biweekly better than monthly with extra payments?
A: Mathematically similar, but biweekly enforces discipline and may qualify for rate discounts.

Q3: Do all lenders accept biweekly payments?
A: Most do, but some may charge fees or require setup. Always check with your lender.

Q4: How does this compare to weekly payments?
A: Weekly payments would pay off slightly faster, but the administrative benefit diminishes.

Q5: Can I switch from monthly to biweekly mid-loan?
A: Many lenders allow this, but may require reprocessing the loan. Ask about any fees.