Car Loan Early Payoff Calculator
See how extra monthly, yearly or one-time payments shorten your car loan and how much interest they save — or find the extra payment needed to be debt-free by a target date — with a full payoff schedule.
How it works
Scheduled payment = balance × i ÷ (1 − (1+i)^−n) · Each month: interest = balance × i, principal = payment + extra − interest · Repeat until balance = 0 (i = APR ÷ 12) · Interest saved = interest on the original schedule − interest with extra payments · Goal mode: smallest monthly extra that ends the loan within the target months
Every extra dollar you pay goes straight to principal, so it stops accruing interest for the rest of the loan. Because car loans front-load interest, extra payments early on save the most. The calculator works out your scheduled payment — from the current balance and months left, or from the original loan and the number of payments already made — then amortizes the loan month by month with your extra monthly amount, an optional yearly extra (such as a tax refund) and a one-time lump sum. It compares the shorter payoff and lower interest with the original schedule, nets out any prepayment penalty, and shows a what-if table for common extra amounts. Switch to “Extra needed for a goal” to get the smallest extra monthly payment that clears the loan within the number of months you choose. The figures assume a simple-interest loan, which is standard for US car loans; precomputed (Rule of 78s) loans save far less when paid early.
Worked example
On a $25,000 balance at 6.5% with 60 months left, the scheduled payment is $489.15 and the remaining interest is $4,349.22. Paying an extra $100 a month ($589.15 in total) clears the loan in 4 years 1 month (49 payments) — 11 months early — and saves $865.44 of interest. To be debt-free in 36 months instead, you would need $277.08 extra a month ($766.23 in total). On a $35,000, 60-month loan at 6.7% with 12 payments made, the balance is $28,902.84; an extra $50 a month saves 3 months and $322.69, and an extra $200 saves 11 months and $1,042.08.
Sources: CFPB — Can I prepay my loan at any time without penalty?
Frequently asked questions
Does paying extra on a car loan save money?
Yes, on a simple-interest loan. Extra payments reduce the principal immediately, so less interest accrues over the remaining term. The earlier you add them, the more you save, because that is when the balance — and the interest on it — is largest. The what-if table shows the savings for several extra amounts side by side.
How much extra do I need to pay to finish by a certain date?
Choose “Extra needed for a goal” and enter how many months from now you want the loan gone. The calculator finds the smallest extra monthly payment that gets you there, taking any yearly or one-time extra payments into account.
I don’t know my current balance. Can I still use this?
Yes. Choose “Original amount” and enter the amount you borrowed, the original term and how many payments you have made. The calculator works out today’s balance and the months left. Your lender’s payoff quote is still the most exact figure.
Should I pay off my car loan early or invest?
Compare your loan APR to what you could reliably earn elsewhere. If the car loan rate is higher than your expected after-tax investment return, paying it down is the guaranteed better deal; if your rate is very low, investing may win. Keep an emergency fund either way.
Will extra payments lower my monthly payment?
No — extra payments shorten the loan rather than reduce the required monthly amount. Your scheduled payment stays the same, but you finish sooner. Ask the lender to apply extra funds to principal, not to prepay future installments.
Can my lender charge a penalty for paying early?
Some contracts include a prepayment penalty, and loans with precomputed interest give back less interest when paid early. Check the contract, enter any penalty under More options, and the calculator shows the net saving after it.
Related calculators
Educational estimate only — real costs vary by lender, insurer, location and driving habits. Not financial advice.