1. What is Biweekly Auto Loan Amortization?

Biweekly auto loan amortization calculates loan payments every two weeks instead of monthly. This results in 26 half-payments per year (equivalent to 13 monthly payments), which can reduce loan term and interest costs.

2. How Does the Calculator Work?

The calculator uses the biweekly payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Biweekly interest rate (annual rate ÷ 26)
• \( n \) — Total number of biweekly periods (years × 26)
• \( PMT_{biweekly} \) — Biweekly payment amount (USD)

Explanation: The formula accounts for compound interest over biweekly periods, with payments applied to both interest and principal.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several months and reduce total interest paid by thousands of dollars, depending on your loan amount and term.

4. Using the Calculator

Tips: Enter loan amount in USD, annual interest rate (typically 5-7% for auto loans), and loan term in years. The calculator will show your biweekly payment amount and generate an amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: How much faster does biweekly pay off my loan?
A: Typically 4-8 months faster on a 5-year loan, depending on your interest rate.

Q2: Are there prepayment penalties?
A: Most auto loans don't have prepayment penalties, but check your loan agreement.

Q3: How does this compare to monthly payments?
A: Biweekly payments result in one extra full payment per year, applied directly to principal.

Q4: Can I switch to biweekly after starting monthly?
A: Yes, but you may need to set up automatic payments or manually make half-payments every two weeks.

Q5: Do all lenders accept biweekly payments?
A: Most do, but some may apply payments monthly unless you formally change your payment schedule.