Car loan early payoff calculator
Find out how much sooner your car loan ends, and how much interest you save, if you pay a little extra each month or make a one-time payment.
Your loan today
Use the figures from your latest statement.
Early payoff results
See what paying early changes
Enter what you owe today and how you plan to pay it down.
- Your current balance and rate
- The months left or your monthly payment
- An extra monthly amount, a one-time payment, or both
These numbers can't be calculated
Interest saved Example
Inputs changed — recalculate
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| Measure | Current plan | With extra payments | Change |
|---|---|---|---|
| Monthly payment | — | — | — |
| Paid off in | — | — | — |
| Last payment | — | — | — |
| Interest from today | — | — | — |
| Total paid from today | — | — | — |
Assumes every extra dollar goes straight to the principal and that your lender charges no prepayment penalty. Some loans apply extra payments differently or charge a fee for paying early — check your contract or ask your lender.
How this is calculated
Each month, interest is charged on the balance at the monthly rate (annual rate ÷ 12), then the payment is applied. The calculator repeats that until the balance reaches zero — once with your current payment and once with the extra payments.
interest = balance × rate ÷ 12 If you enter the months left, the current payment is worked out from the balance, the rate and those months. A one-time payment is taken off the balance today, before the next payment.
Estimate only. Figures are not rounded to the cent each month the way a lender's statement is, so the last payment and totals can differ by a few cents.
How extra payments shorten a car loan
Each month, part of your payment covers the interest charged on the balance and the rest reduces the principal. Any money you add on top goes to the principal, so the next month's interest is charged on a smaller balance. More of each later payment then goes to principal too, and the loan ends early.
That is why the saving grows with the rate and with the time left: money paid now stops accruing interest for every month that remains.
Worked example: $18,000 left at 7.5 %
You owe $18,000.00 at 7.5 % a year with 48 payments left. The regular payment is $435.22, and over those 48 months you would still pay $2,890.57 in interest.
Adding $100 a month raises the payment to $535.22. The loan is then paid off in 3 years 2 months instead of 4 years — 10 months sooner — and the interest falls to $2,270.42: $620.15 saved.
| Extra payment | Paid off in | Months saved | Interest from today | Interest saved |
|---|---|---|---|---|
| No extra payments | 48 months | 0 | $2,890.57 | $0.00 |
| $50 extra a month | 43 months | 5 | $2,542.48 | $348.09 |
| $100 extra a month | 38 months | 10 | $2,270.42 | $620.15 |
| $200 extra a month | 32 months | 16 | $1,873.54 | $1,017.04 |
| $1,000 one-time payment | 45 months | 3 | $2,550.79 | $339.78 |
| $2,000 one-time payment | 42 months | 6 | $2,236.16 | $654.41 |
| $100 a month + $1,000 once | 36 months | 12 | $2,009.86 | $880.71 |
Check with your lender first
The figures above assume every extra dollar reduces the principal right away and that paying early costs nothing. Not every loan works that way:
- Some loans charge a prepayment penalty or use precomputed interest, so paying early saves less than shown here.
- Some lenders apply extra money to the next payment due rather than to the principal unless you tell them otherwise.
- Some require extra principal payments to be made separately or labelled a certain way.
Your loan contract sets the rules. If it is unclear, ask your lender before paying extra.
Assumptions and limits
- Fixed rate, interest charged monthly at the annual rate ÷ 12.
- A one-time payment is applied today, before the next regular payment.
- An extra monthly amount is added to every payment from the next one onward.
- The required monthly payment stays the same; the loan ends sooner.
- No fees, penalties, insurance or late charges. Amounts are not rounded to the cent each month, so a lender's statement can differ by a few cents.
Frequently asked questions
How much interest do I save by paying extra on my car loan?
It depends on the balance, the rate and how much time is left. On $18,000 at 7.5 % with 48 payments left, the regular payment is $435.22 and the remaining interest is $2,890.57. Adding $100 a month cuts that to $2,270.42, a saving of $620.15, and the loan ends 10 months sooner.
Is a one-time payment or an extra monthly payment better?
They work the same way: both reduce the principal, and money applied sooner saves more interest because it stops accruing interest for longer. In the example on this page, $2,000 paid today saves $654.41 in interest, while $100 extra every month saves $620.15. Which suits you depends on your cash flow; the calculator shows both.
Does paying extra lower my monthly payment?
Usually not. On most fixed-payment car loans, extra principal shortens the loan while the required monthly payment stays the same. Some lenders can recalculate the payment on request. This calculator assumes the payment stays the same and the loan ends sooner.
Are there penalties for paying off a car loan early?
Some loans charge a prepayment penalty or use precomputed interest, where paying early saves less than this calculator shows. Others apply extra money to the next payment due instead of the principal unless you ask. Your loan contract states the rules; if it is unclear, ask your lender before sending extra payments.