1. What is the Biweekly Auto Loan Payment?

The biweekly auto loan payment is the amount you pay every two weeks to repay your car loan. Making biweekly payments instead of monthly payments can help you pay off your loan faster and save on interest.

2. How Does the Calculator Work?

The calculator uses the biweekly payment formula:

Where:

• \( P \) — Principal loan amount ($)
• \( r_{bi} \) — Biweekly interest rate (annual rate ÷ 26)
• \( n_{bi} \) — Total number of biweekly payments (years × 26)

Explanation: The formula calculates the fixed payment amount required to fully amortize the loan over the specified term with biweekly payments.

3. Benefits of Biweekly Payments

Details: Making biweekly payments (26 payments per year) instead of monthly payments (12 payments per year) results in the equivalent of 13 monthly payments each year, which can reduce your loan term and total interest paid.

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.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Typically 1-3 years off your loan term and 10-20% in interest savings, depending on your loan amount and terms.

Q2: Is biweekly better than monthly payments?
A: Biweekly payments can save money and pay off loans faster, but require more frequent payments. Monthly payments may be easier to budget for some people.

Q3: How does biweekly compare to making extra payments?
A: Biweekly payments systematically make extra payments (equivalent to 1 extra monthly payment per year), while extra payments can be irregular but potentially larger.

Q4: Can I switch to biweekly after starting monthly?
A: Many lenders allow payment frequency changes, but check with your lender for any fees or restrictions.

Q5: Are there any downsides to biweekly payments?
A: The main downside is needing to make payments more frequently, which requires careful cash flow management.