1. What is Weekly Loan Amortization?

Weekly loan amortization calculates loan payments on a weekly basis rather than monthly. This can help borrowers pay off loans faster and save on interest by making more frequent payments.

2. How Does the Calculator Work?

The calculator uses the weekly payment formula:

Where:

• \( P \) — Principal loan amount ($)
• \( r \) — Weekly interest rate (annual rate ÷ 52)
• \( n \) — Total number of weekly payments (years × 52)

Explanation: The formula calculates the fixed payment amount required each week to pay off the loan over the specified term, including both principal and interest.

3. Importance of Weekly Payments

Details: Weekly payments can reduce total interest paid and shorten the loan term compared to monthly payments, as more frequent payments reduce the principal faster.

4. Using the Calculator

Tips: Enter the principal amount in dollars, annual interest rate as a percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with weekly vs monthly payments?
A: Savings vary but typically range from 5-15% of total interest, depending on the loan amount and term.

Q2: Are there loans that specifically offer weekly payments?
A: Some personal loans and mortgages offer weekly payment options, but you can often make weekly payments on standard loans.

Q3: How does weekly compounding affect the calculation?
A: This calculator assumes interest is compounded weekly, which is standard for weekly payment loans.

Q4: Can I use this for mortgage calculations?
A: Yes, though mortgages typically use monthly payments, this shows the potential savings of weekly payments.

Q5: What if I make extra payments?
A: Extra payments would further reduce the loan term and total interest, but this calculator shows the standard weekly payment amount.