Paying a little extra on your car loan can save real money. This car loan payoff calculator shows the effect of extra payments: enter your current balance, rate and payment, then add an extra monthly amount or a one-time payment to see how much interest you save and how much sooner you pay off your auto loan.
Add this calculator to your website
Free to use on your blog or website. Paste this code where you want the calculator to appear, for example in a Custom HTML block in WordPress.
Why extra payments save interest
Interest is charged on the balance you still owe. Every extra payment goes straight to that balance, so all the following months are charged less interest. The earlier in the loan you pay extra, the bigger the saving.
Before you pay extra
- Check for prepayment penalties. Some lenders charge a fee for paying early.
- Ask that extra payments go to principal. Otherwise some lenders treat them as future payments.
- Keep an emergency fund. Cash in the bank may be worth more than paying off a low-rate loan.
- Clear expensive debt first. Credit cards usually charge far more interest than car loans.
Frequently asked questions
Where do I find my current balance?
Your latest loan statement or your lender’s app shows it. Ask for the exact payoff figure if you plan to clear the loan completely, because it includes interest up to that day.
Is it smart to pay off a car loan early?
It usually is when your loan rate is higher than what your savings earn and there is no prepayment penalty. It may not be the best move if you have no emergency fund or are carrying more expensive debt, such as credit cards.
Results are estimates for planning only. Related: Refinance calculator · Car loan calculator