Car Loan Weekly Payment Calculator

Weekly Payment Formula:

\[ PMT_w = P \times \frac{r_w (1 + r_w)^{n_w}}{(1 + r_w)^{n_w} - 1} \]

Weekly Payment (PMT_w):

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1. What is the Weekly Payment Formula?

The weekly payment formula calculates the fixed payment amount required each week to repay a car loan over a specified period, including interest.

2. How Does the Calculator Work?

The calculator uses the weekly payment formula:

\[ PMT_w = P \times \frac{r_w (1 + r_w)^{n_w}}{(1 + r_w)^{n_w} - 1} \]

Where:

\( PMT_w \) — Weekly payment amount
\( P \) — Principal loan amount
\( r_w \) — Weekly interest rate (annual rate ÷ 52)
\( n_w \) — Total number of weekly payments

Explanation: The formula accounts for both principal repayment and interest charges, with payments structured so the loan is fully repaid by the end of the term.

3. Importance of Weekly Payment Calculation

Details: Knowing your exact weekly payment helps with budgeting and ensures you can comfortably afford the car loan without financial strain.

4. Using the Calculator

Tips: Enter the total loan amount, weekly interest rate (divide annual rate by 52), and the number of weekly payments. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert annual rate to weekly rate?
A: Divide the annual interest rate by 52 (weeks in a year). For example, 10% annual becomes 0.1923% weekly.

Q2: Are there other costs not included in this calculation?
A: Yes, this calculates principal and interest only. Insurance, taxes, and fees are additional costs.

Q3: What if I make bi-weekly payments instead?
A: For bi-weekly payments, divide the annual rate by 26 and use the number of bi-weekly periods.

Q4: How does a larger down payment affect weekly payments?
A: A larger down payment reduces the principal (P), which directly lowers your weekly payments.

Q5: Can I use this for other types of loans?
A: Yes, this formula works for any amortizing loan where payments are made weekly.