Car Loan Payoff Calculator
See the impact of paying extra on your car loan. Clear your auto debt years earlier and keep money from going toward depreciation interest.
Loan Details
Accelerated Savings
Redirecting your saved monthly payments ($0/mo) for the 0 years you saved at a 7% annual return accumulates this wealth.
Accelerate Your Car Loan Payoff Timeline
Our Car Loan Payoff Calculator is built for auto owners looking to eliminate car payments. Auto loans represent depreciating assets, which makes prepaying principal an excellent strategy to avoid negative equity and own your vehicle free and clear.
How Auto Prepayment Saves Money
Auto loans calculate interest monthly on the outstanding balance. When you make an extra payment, 100% of that extra amount goes directly to paying down the principal balance:
By lowering the principal balance, the interest charge is smaller in the following month, leaving more of your regular monthly payment to go toward the principal. For resources on auto loans, visit the Consumer Financial Protection Bureau (CFPB) auto loan portal.
Worked Numerical Example
Here is a payoff comparison for an auto loan of $28,000 at a 6.0% interest rate over a 5-year term, with an extra payment of $75/month:
- Car Loan Principal: $28,000
- Interest Rate: 6.0% (APR)
- Term: 5 Years (60 Months)
- Standard Monthly Payment: $541.32
- Extra Monthly Payment: $75.00
| Payoff Option | Monthly payment | Total Interest Paid | Total Cost of Loan | Payoff Timeline |
|---|---|---|---|---|
| Standard Schedule | $541.32 | $4,479.20 | $32,479.20 | 5.0 Years |
| Accelerated Prepayment | $616.32 | $3,842.12 | $31,842.12 | 4.4 Years |
| Total Savings | +$75.00 / month | $637.08 Saved | $637.08 Saved | 0.6 Years Saved |
When to Use This vs. Our Other Calculators
To select the most appropriate calculator for your planning:
- Use the Auto Loan Calculator to model standard auto loans with extra monthly payments.
- Use the Loan Calculator to model general personal or secured installment loans.
- Use the Amortization Schedule Calculator to view your full month-by-month balance reduction breakdown.