Weekly Payoff Formula:
From: | To: |
Definition: This calculator determines how quickly you can pay off your mortgage by making weekly payments instead of monthly payments.
Purpose: It helps homeowners understand the time savings from making more frequent payments, which can significantly reduce interest costs.
The calculator uses the formula:
Where:
Explanation: The formula calculates how many weekly payments are needed to pay off the mortgage principal, accounting for the weekly compounding of interest.
Details: Making weekly instead of monthly payments can reduce your mortgage term by several years and save thousands in interest because you're making the equivalent of 13 monthly payments each year.
Tips: Enter your mortgage principal, annual interest rate (as a decimal), and your planned weekly payment amount. The calculator will show your estimated payoff time.
Q1: How do weekly payments save money?
A: Weekly payments reduce principal faster, which means less interest accumulates over the life of the loan.
Q2: Is the interest rate monthly or annual?
A: Enter the annual interest rate as a decimal (e.g., 5% = 0.05). The calculator converts it appropriately.
Q3: What if I can't make full weekly payments?
A: Even partial weekly payments (e.g., half your monthly payment every 2 weeks) can provide significant savings.
Q4: How accurate is this calculator?
A: It provides a close estimate, but actual terms may vary based on your lender's specific policies.
Q5: Can I use this for other loans?
A: Yes, it works for any amortizing loan where you want to calculate weekly payoff timing.