Bi Weekly Auto Loan Calculator Excel

This bi weekly auto loan calculator helps you determine your monthly payments when you make bi-weekly payments. It's especially useful for understanding how bi-weekly payments affect your loan term and interest costs compared to traditional monthly payments.

How to Use This Calculator

To use this bi weekly auto loan calculator:

Enter the loan amount you're borrowing
Input the annual interest rate (APR)
Specify the loan term in years
Click "Calculate" to see your bi-weekly payment amount

The calculator will show you the equivalent monthly payment, total interest paid, and total cost of the loan. You can also view a payment schedule chart.

Formula Explained

The bi-weekly auto loan payment is calculated using the standard loan payment formula adjusted for bi-weekly payments:

Bi-Weekly Payment = P × (r × (1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal loan amount
r = Monthly interest rate (APR/12)
n = Total number of payments (loan term in years × 26)

Since there are 26 bi-weekly payments in a year (52 weeks ÷ 2), we use 26 instead of 12 for the number of payments per year.

Worked Example

Let's calculate a bi-weekly payment for a $20,000 loan at 4.5% APR over 5 years:

Example Calculation:

Monthly rate = 4.5%/12 = 0.375% or 0.00375

Total payments = 5 years × 26 = 130 payments

Bi-weekly payment = $20,000 × (0.00375 × (1 + 0.00375)^130) / ((1 + 0.00375)^130 - 1)

Bi-weekly payment ≈ $321.54

This means you would pay approximately $321.54 every two weeks for 5 years.

Excel Formula

You can use this Excel formula to calculate bi-weekly auto loan payments:

=PMT(APR/26, term_years*26, loan_amount)

Where:

APR is the annual percentage rate (as decimal)
term_years is the loan term in years
loan_amount is the principal amount

For our example, the formula would be: =PMT(0.045/26, 5*26, 20000)

Frequently Asked Questions

How does bi-weekly payment affect my loan term?

Bi-weekly payments reduce your loan term by making more payments each year. For example, a 5-year loan becomes about 4.8 years with bi-weekly payments.

Is it better to make bi-weekly payments or monthly?

Bi-weekly payments can save you money on interest and reduce your loan term, but they require more frequent payments. The savings depend on your specific loan terms.

Can I use this calculator for refinancing?

Yes, you can use this calculator to compare different loan options, including refinancing scenarios, by adjusting the loan amount and terms.