A bi-weekly car payment plan involves making payments every two weeks instead of the traditional monthly schedule. Since there are 52 weeks in a year, this means you'll make 26 half-payments annually, which equates to 13 full monthly payments per year (compared to 12 with a standard monthly plan). This extra payment per year can significantly reduce the total interest paid over the life of the loan and help you pay off your car loan faster.
How it Works: The Math Behind the Calculator
The bi-weekly payment is calculated by first determining the standard monthly payment using the loan amortization formula, and then adjusting it for a bi-weekly schedule.
The formula for the standard monthly payment (M) is:
n = Total number of payments (Loan Term in Years * 12)
Once the monthly payment (M) is calculated, we can derive the bi-weekly payment. The total annual loan repayment amount is M * 12. When making bi-weekly payments, you make half of this amount 26 times a year. Therefore, the bi-weekly payment (BW) is approximately:
BW = (M * 12) / 26
This calculator simplifies this process by taking your inputs and directly computing the bi-weekly payment.
Benefits of Bi-Weekly Car Payments
Faster Payoff: By making an extra monthly payment equivalent each year, you reduce the loan principal more quickly.
Save on Interest: A shorter loan term means less interest accrues over the life of the loan, leading to significant savings.
Improved Cash Flow Management: For some, making smaller, more frequent payments can be easier to budget for.
When to Use This Calculator
Use this calculator if you are:
Considering a new car loan.
Looking to refinance an existing car loan.
Wanting to understand how a bi-weekly payment schedule might affect your total cost and loan duration.
Disclaimer: This calculator provides an estimate. Actual payments may vary based on lender terms, fees, and exact payment processing. Always consult with your lender for precise loan details.
function calculateBiWeeklyPayment() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var loanTermYears = parseFloat(document.getElementById("loanTermYears").value);
var resultDisplay = document.getElementById("result-value");
// Input validation
if (isNaN(loanAmount) || loanAmount <= 0) {
resultDisplay.textContent = "Invalid Loan Amount";
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
resultDisplay.textContent = "Invalid Interest Rate";
return;
}
if (isNaN(loanTermYears) || loanTermYears 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfMonthlyPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfMonthlyPayments) – 1);
} else {
// If interest rate is 0, payment is simply principal divided by number of payments
monthlyPayment = loanAmount / numberOfMonthlyPayments;
}
// Calculate bi-weekly payment
var biWeeklyPayment = (monthlyPayment * 12) / 26;
// Format and display the result
resultDisplay.textContent = "$" + biWeeklyPayment.toFixed(2);
}