Car Loan Payoff Calculator
What extra monthly payments do to your loan.
Standard monthly payment
Payoff with extra
Interest without extra
Interest with extra
Interest saved
How to use this calculator
Enter your loan amount, APR, original term and the extra you can pay each month. The calculator compares your loan with and without that extra amount.
What the result means
Extra payments attack principal directly, so they cut both the number of payments and the interest charged. Even $100 extra a month can save hundreds of dollars on a typical car loan.
How extra payments change your loan
Auto loans charge interest on the current balance. An extra payment goes straight to principal, which shrinks the balance the next month's interest is calculated on. The result compounds: pay extra early and every later month carries a little less interest.
Worked example
A $25,000 loan at 7% for 60 months has a standard payment near $495 and about $4,700 of total interest. Adding $150 a month shortens the loan to roughly 4 years and cuts the interest to about $3,100 - you save close to $1,600 just by paying the extra amount.
When extra payments help most
- High APR - the higher your rate, the bigger the interest savings per extra dollar.
- Early in the loan - the same extra dollar saves more interest in month 2 than in month 58.
When to hold the cash instead
If you carry credit-card debt above ~10%, pay that first. If you have no emergency fund, build one before prepaying a low-rate car loan. Auto loans rarely have prepayment penalties, so you can always start paying extra later.
Frequently asked questions
Is there a prepayment penalty on car loans?
Rarely. Auto loans are usually simple interest, so you are never charged for paying early.
Do I need to tell the lender it is an extra payment?
Yes - confirm the extra amount is applied to principal and not treated as next month's payment.
Is paying off a car loan early bad for credit?
It can dip your score slightly once the account closes, but the interest saved usually outweighs that small, temporary effect.
Where to find the extra money
Refinancing at a lower rate and keeping the same payment is another way to pay down principal faster without a big cash outlay. Windfalls - bonuses, tax refunds, a sold old car - are ideal one-off principal payments. Even occasional extras beat no extras at all.