Car Loan Calculator to Pay off Early

See how much interest you can save and how quickly you can pay off your car loan by making additional monthly payments. This tool helps you understand the financial benefits of accelerating your loan repayment.

Enter your car loan details and any extra payment amount, then click “Calculate Payoff.”

Car Loan Information
Current Loan Balance:		$
Annual Interest Rate (APR):		%
Remaining Loan Term:		Years
Extra Monthly Payment (Optional):		$

Understanding Early Car Loan Payoff

Paying off your car loan ahead of schedule can offer significant financial advantages. By making extra payments towards the principal balance, you reduce the amount of interest that accrues over the life of the loan. This not only saves you money but also frees up your cash flow sooner.

The standard monthly payment (M) for a fixed-rate loan is calculated using the formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

• P = Principal Loan Amount (Current Loan Balance)
• i = Monthly Interest Rate (Annual Rate / 12 / 100)
• n = Total Number of Payments (Loan Term in Years * 12)

When you add an extra amount to your monthly payment, that entire extra amount typically goes towards reducing the principal. This calculator demonstrates the impact of such extra payments.

How to Use This Calculator:

1. Enter Loan Balance: Input the current amount you owe on your car loan.
2. Input APR: Provide the Annual Percentage Rate of your loan.
3. Specify Loan Term: Enter the remaining term of your loan in years.
4. Add Extra Payment (Optional): If you plan to pay more than your regular monthly payment, enter the additional amount here. Leaving this blank or at 0 will show you the standard amortization.
5. Calculate: Click “Calculate Payoff” to see your standard payment, and if applicable, how extra payments affect your payoff time and total interest.

Auto Finance & Loan Resources

Auto Loans (CFPB) How to Pay Off a Car Loan Early (NerdWallet) Benefits of Paying Off a Car Loan Early (Experian)