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Auto loan payoff calculator
How much sooner is the car yours if you add $50 or $100 a month? Enter your current balance and payment and find out.
- Typical term
- 36–72 months (84 is increasingly common)
- Interest type
- Simple interest on most loans
- Title
- Released when the loan is paid off
$986
interest you never pay
- Monthly payment
- $440.83 + $100
- Debt-free
- 4 yrs
- Time cut
- 1 yr
- Total interest
- $3,464 vs $4,450
Every extra dollar you put in saves about $0.21 in interest ($4,700 extra in total), a guaranteed, tax-free return equal to your 7.5% rate.
Amortization schedule with extra payments
| Year | Interest | Principal | Extra | Balance |
|---|---|---|---|---|
| 1 | $1,480 | $3,810 | $1,200 | $16,990 |
| 2 | $1,091 | $4,199 | $1,200 | $11,591 |
| 3 | $672 | $4,618 | $1,200 | $5,773 |
| 4 | $220 | $4,673 | $1,100 | $0 |
Ask the trail guide about this plan
Get a plain-English read of the numbers above: what's driving the savings, what to check with your lender, and trade-offs to weigh. Written by AI from your inputs, so double-check anything important.
Paying off a car loan early
Car loans are simple-interest in most states: interest accrues on the outstanding balance, so extra principal reduces what you pay. On a 72- or 84-month loan the savings can be substantial, and you get the title sooner.
If your rate is very low (a 0–3% promotional rate), you might do better keeping cash in savings. Above roughly 6–7%, prepaying is hard to beat for a guaranteed return.
Getting a payoff quote
When you are ready to pay the last of it, ask the lender for a 10-day payoff quote. It includes interest up to the payoff date, so it will be slightly higher than the balance on your last statement.
Several loans at once? The debt snowball and avalanche calculator orders them for you.
Questions people ask
Does paying off a car loan early hurt your credit?
Closing an installment loan can cause a small, temporary dip because it changes your credit mix and ends an active account, but it is rarely significant and the account stays on your report as paid in good standing.
How do I make principal-only car payments?
Most lenders have a "principal only" or "additional principal" option online. Otherwise, call or send a separate check marked principal only. Check the next statement to confirm.
What happens if I pay extra on my car loan?
On a simple-interest loan, extra money lowers the principal, so less interest accrues each month and the loan ends early. Some lenders instead advance your due date; ask them to apply it to principal.
Should I pay off my car or invest?
Compare the loan rate to what you can reliably earn after tax. Paying off a 9% loan is a guaranteed 9% return; see our pay off or invest calculator for a side-by-side.
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