How to Calculate Bi-Weekly Car Payments
If you would like to get your car paid off faster with less interest paid, consider making bi-weekly car payments instead of only paying once per month. This way every two weeks, you are paying interest on your loan and reducing the principle faster.
Other People Are Reading
Instructions
-
-
1
Choose the calculator site at Money-zine.com and figure out what your bi-weekly car payments will be.
-
2
Enter the total amount of your car loan. This will be on your finance papers or call your bank to get this amount.
-
-
3
Look at your finance papers and find the annual interest rate. Enter this amount into the calculator where it says "annual interest rate".
-
4
See the term of your loan in years. On most finance papers, it will state the term in months so you will need to convert this to years.
-
5
Take the number of months you will make payments and divide it by twelve. For example, if it is sixty months, then take sixty divided by twelve which equals five. Enter five on the term of the loan line in the calculator.
-
6
Press the "calculate" button. You will now see the result on the line that says "Biweekly Car Loan ($ / 2 Weeks)". This is the amount you must pay every two weeks to realize the savings.
-
7
Examine the calculator. This will also provide information on the total amount of interest saved over the life of the loan. You will also see how much shorter term you have to pay on using the bi-weekly car payments method.
-
1
Tips & Warnings
Make sure your bank or finance company will accept bi-weekly car payments on your account. Check with them before beginning the program.
