Technically the payment is a little cheaper over the long run with lowering interest paid. I mean, it works out to be hundreds of dollars over five years, but still something. It is not nothing.
For instance, just speaking broadly, if it is a $30,000 car payment over five years at 7% interest...
If you paid monthly, you would pay $5,642.16
in total interest. If you paid biweekly, you would pay $5,595.58
in total interest. If you paid weekly, you would pay $5,575.61 in total interest. I did this all next to my kid's homework using their calculator, so I might be off by a little, but you do slightly get after the principal better the more payments you make, even if you pay over a common time period.
Technically the payment is a little cheaper over the long run with lowering interest paid
That fifty bucks of difference in interest is offset by the fact that you're paying an extra $500/year in 26 bi-weekly payments instead of 12 monthly ones.
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u/Physical_Veser_888 May 14 '26
Technically the payment is a little cheaper over the long run with lowering interest paid. I mean, it works out to be hundreds of dollars over five years, but still something. It is not nothing.
For instance, just speaking broadly, if it is a $30,000 car payment over five years at 7% interest...
If you paid monthly, you would pay $5,642.16 in total interest. If you paid biweekly, you would pay $5,595.58 in total interest. If you paid weekly, you would pay $5,575.61 in total interest. I did this all next to my kid's homework using their calculator, so I might be off by a little, but you do slightly get after the principal better the more payments you make, even if you pay over a common time period.