Loan Amortization Calculator By Weeks

Amortization Formulas:

\[ Interest_k = Balance_{k-1} \times r_w \] \[ Principal_k = PMT_w - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Weekly Payment:

Total Interest:

Total Cost:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Weekly Loan Amortization?

Weekly loan amortization is the process of paying off a debt with regular weekly payments over time. Each payment covers both interest and principal, with the interest portion decreasing and the principal portion increasing over the life of the loan.

2. How Does the Calculator Work?

The calculator uses these amortization formulas:

\[ Interest_k = Balance_{k-1} \times r_w \] \[ Principal_k = PMT_w - Interest_k \] \[ Balance_k = Balance_{k-1} - Principal_k \]

Where:

\( Interest_k \) — Interest portion of payment in week k
\( Principal_k \) — Principal portion of payment in week k
\( Balance_k \) — Remaining balance after week k payment
\( r_w \) — Weekly interest rate (annual rate ÷ 52)
\( PMT_w \) — Fixed weekly payment amount

3. Importance of Amortization Schedule

Details: An amortization schedule helps borrowers understand how much of each payment goes toward interest versus principal, how much interest will be paid over the life of the loan, and how extra payments can reduce the loan term and total interest.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate, and loan term in weeks. The calculator will show the weekly payment amount, total interest, and total cost of the loan.

5. Frequently Asked Questions (FAQ)

Q1: How is the weekly payment calculated?
A: The payment is calculated using the formula for the present value of an annuity, which accounts for compound interest over the payment periods.

Q2: What's the difference between weekly and monthly payments?
A: Weekly payments result in more frequent but smaller payments, which can reduce total interest paid since principal is paid down faster.

Q3: Can I make extra payments with this calculator?
A: This version calculates a standard amortization schedule. For extra payments, you would need a more advanced calculator.

Q4: Why does most of the early payment go toward interest?
A: In the early stages of a loan, the outstanding balance is highest, so the interest portion is larger. As the balance decreases, more of each payment goes toward principal.

Q5: How accurate is this calculator?
A: It provides accurate estimates for fixed-rate loans. Actual payments may vary slightly due to rounding or specific lender policies.