Car Loan Payoff Calculator

How to use this calculator

1. Enter the original loan amount. This is the amount financed on your contract, not the car’s sticker price.
2. Enter the APR from the Truth in Lending disclosure in your contract.
3. Enter the term in months. A six-year loan is 72 months.
4. Enter the payments already made.
5. Add an extra monthly payment, even a small one.
6. Add a one-time lump sum, such as a tax refund, and the month you plan to pay it.

What the results mean

Current balance

What you should owe now, assuming every payment was on time and on schedule. Your lender's payoff quote may differ a little, for example if it charges interest daily.

Remaining interest on schedule

The interest you still pay if you make only the regular payments.

New payoff date

When the loan ends with your extra payments.

Interest saved and time saved

Your plan against the original schedule. On a simple-interest loan, extra money cuts principal right away, so every later month charges less interest.

Worked example

Take a $35,000 car loan at 7.5% APR for 72 months. The payment is $605.15 a month, and the loan costs $8,571.13 in interest over six years.

Pay an extra $100 a month from the start. You save $1,539.30 in interest and own the car 1 year sooner.

The same $35,000 at 7.5% over 36 months would need $1,088.72 a month. A shorter schedule costs much more each month, so a steady extra payment is the middle ground.

Check these before paying extra

Prepayment penalty. The CFPB says your contract and state law decide whether you can pay off an auto loan early. Some lenders charge a fee to discourage it. Look for a prepayment clause in your contract and Truth in Lending disclosures, and check whether your state prohibits the penalty. Refinancing also pays off the original loan, so a penalty can apply there too.

Simple or precomputed interest. The CFPB says simple interest is far more common on auto loans. It is charged on your balance, so extra payments reduce interest. With precomputed interest, the interest is added at the start and split across the payments, so extra payments don’t cut the interest the same way, though you may get a refund of some unearned interest. This calculator models simple interest, so on a precomputed loan your savings will be smaller than shown.

Where the extra goes. Ask your lender to apply extra payments to principal, not to next month’s payment.

How we calculate this

The scheduled payment comes from the standard loan formula for the amount financed, the APR and the term. The calculator runs that schedule for the payments made to find today’s balance, then continues month by month with your extra, charging interest at the APR divided by 12, rounded to the cent. The final payment is exactly what’s left. See the methodology page.

Related

• Should I pay off my car loan early?: when it makes sense and when it doesn’t.
• Early loan payoff calculator: the same math for any installment loan.
• Debt payoff calculator: your car loan alongside cards and other debts.

FAQ

What happens if I pay an extra $100 a month on my car loan?

The extra goes to principal, so you owe less and pay less interest every month after. On a $35,000 loan at 7.5% for 72 months, $100 extra from the start saves $1,539.30 and ends the loan 1 year early. Enter your own loan above.

How much is a $35,000 car loan payment for 72 months?

At 7.5% APR, the payment on $35,000 over 72 months is $605.15 a month, with $8,571.13 in total interest. A different rate changes both figures. Enter your APR above, and use the extra payment field to see how fast you could pay it off instead.

Is it smart to pay off a car loan early?

It saves interest at your loan’s APR, and it frees up the monthly payment once the loan is gone. It makes less sense if you have higher-rate debt, like credit cards, or no emergency savings. Check for a prepayment penalty first, and compare the interest saved above with what that cash could do elsewhere.

How do I pay off a 72-month car loan faster?

Add a fixed extra amount to every payment, put windfalls like tax refunds toward principal, or round your payment up. Ask your lender to apply the extra to principal. The calculator above shows how many months each option removes. Extra paid early in the loan saves the most.

Do car loans have prepayment penalties?

Some do. According to the CFPB, your contract and state law decide whether you can pay off an auto loan early without a fee, and some states prohibit prepayment penalties for certain loans. Read your contract and Truth in Lending disclosures, and ask your lender before sending a large payoff.