Auto Loan Extra Payment Payoff Calculator
Example: Current loan balance: 24000 $ · Loan APR: 7.5 % · Current monthly payment: 480 $ · Extra payment per month: 100 $
| Months you save | 12 |
| Interest you save | $1,160 |
| New payoff (months) | 49 |
| Original payoff (months) | 61 |
Worked example
Suppose you owe $24,000 at 7.5% and pay $480 a month, which clears the loan in about 57 months. Add $100 a month and the payoff drops to roughly 45 months, saving about 12 months and cutting close to $1,000 of interest. The extra $100 is not lost money — it simply retires debt faster and you stop paying the bank for the privilege of borrowing longer.
Frequently asked questions
Will the extra payment definitely go to principal?
Usually yes, but confirm with your lender that additional payments are applied to principal rather than pre-paying the next installment. Some servicers require you to note it. If it just advances your due date, you will not save interest the way this tool projects.
Is there a prepayment penalty on car loans?
Most standard auto loans have no prepayment penalty, but a few do. Check your contract before making large extra payments. If a penalty exists, weigh it against the interest saved.
Is paying off my car early always the best move?
If your car loan rate is higher than what you could safely earn elsewhere, paying it down is a guaranteed return. If your rate is very low, investing the extra may beat it. Compare your APR to your alternative return before deciding.
What if my payment barely covers the interest?
If your regular payment is at or below the monthly interest, the balance never falls and the tool returns zero. That is a sign the loan terms are unhealthy and you should refinance or increase the payment substantially.