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Auto Loan Early Payoff Calculator
Thinking about paying off your car loan early? This auto loan early payoff calculator shows how extra monthly payments can shorten your loan term and reduce interest, helping you decide whether early payoff, refinancing, or another strategy fits your financial goals.
Auto Loan Early Payoff Calculator
Enter your current auto loan details to see how extra monthly payments can shorten your payoff time and reduce your total interest cost. Results update automatically as you adjust the numbers.
Your Auto Loan Details
Input your current loan balance (what you still owe), APR, and remaining term. Then enter your current monthly payment and an optional extra amount to see your projected savings.
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Auto Loan Balance Over Time
Explore More Ways to Improve Your Monthly Cash Flow
Compare auto refinance options and explore tools that can help you save money and make smarter financial decisions.
How Does an Auto Loan Early Payoff Calculator Work?
An auto loan early payoff calculator compares two scenarios, including your current payment schedule and a version where you increase your monthly payment to pay down the principal balance. To use it, enter:
- Your remaining loan balance
- Your interest rate (APR)
- The number of months left on your loan
- Your current auto loan payment
- The extra amount you want to pay each month
From there, the calculator estimates how long it would take to pay off your car loan early, how much interest you would pay under each option, and how much interest you could save by increasing your monthly payment.
Because the tool updates automatically, you can test multiple scenarios and immediately see how even small changes affect the amount of interest you pay over time.
Why Does Paying Extra on an Auto Loan Reduce Interest?
Auto loans are amortized, meaning interest is calculated based on your remaining balance. Early in your loan, a larger portion of each payment goes toward interest rather than principal.
When you add extra money to your payment each month:
- More of your payment goes toward the principal amount rather than interest.
- Future interest charges are calculated on a smaller amount.
- The loan ends sooner, reducing the total number of interest payments
This is why even modest additional payment amounts can help you pay down your debt significantly faster than just paying the minimum, particularly if you have a high interest rate on your loan.
How Much Faster Can You Pay Off Your Auto Loan?
The answer depends on your loan terms and how much extra you can comfortably pay.
Here are some common early payoff strategies you can try on the calculator to see how each will affect your loan:
- Round your minimum payment up to the nearest $25 or $50
- Add a flat $100 (or any amount) extra each month
- You can even calculate how much difference making a single large payment can make by adjusting the amount you owe after making a large contribution.
Pro Tip: Make Sure Early Payoff Works For YouFrom our on-staff Certified Financial Educator: Before you commit to putting extra cash toward your auto loan, there are a couple of things to consider. First, while most auto loans don’t include an early payoff penalty fee, some states allow lenders to include one in the terms. Regardless of where you live, it’s worth taking a minute to confirm that your loan doesn’t include an early payoff fee. Secondly, it’s also worth stepping back to look at your overall financial picture. If you’re carrying debts with higher interest rates than your car loan, or you don’t yet have emergency savings in place, directing extra funds toward those priorities first may provide greater financial gain in the long term. |
Is Refinancing Better Than Paying Off an Auto Loan Early?
Auto loan refinancing is another way to manage your auto loan. This strategy can potentially reduce your monthly payment and free up cash flow in your budget.
According to TransUnion, “Of the nearly 80 million open auto loans in the U.S., approximately 18 million are considered ‘in-the-money’ for refinancing. This term refers to borrowers whose current loan rates exceed the prevailing average APR, making them strong candidates to benefit financially from a refinance.”
If your current interest rate is high, or if you’re looking to reduce your monthly auto expenses, refinancing through one of the best auto refinancing lenders could be worth it.
The same TransUnion report also stated that, “More than half of consumers surveyed indicated they would be motivated to refinance if they could save between $50 and $149 per month.”
Other Options to Consider
If paying extra on your auto loan isn’t the best fit for your budget right now, you can also consider these other tools and resources:
- Our Debt Consolidation Calculator can show whether combining your high-interest debts into a single loan save you money over the long run.
- You can check your rates without affecting your credit score from the best debt consolidation lenders to get a picture of how your budget could benefit.
- The best personal loan providers, home equity loan lenders, and student loan refi companies can also offer real-world flexibility for your budget, depending on your financial situation.
How Much Can You Save with Debt Consolidation?
If consolidating your debt is on your mind, check out these top companies:
More Calculator Resources
Refinancing your auto loan or paying it off early aren’t the only ways to manage your finances more effectively. A successful budget often means making changes across several spending categories.
Here are more free calculator resources to help you run your numbers. These tools make it easier to plan efficiently, compare your options, and make confident money decisions based on real numbers.
- Personal Loan Calculator
- Debt Consolidation Calculator
- Home Equity Loan Calculator
- HELOC Payment Calculator
- Debt Snowball Calculator
- Early Loan Payoff Calculator
- Monthly Budget Calculator
- Auto Loan Refinance Calculator
Frequently Asked Questions
Is it always smart to pay off your car loan early?
Not necessarily. It depends on your interest rate, other debts, and individual circumstances. This calculator helps you evaluate the trade-offs using real numbers. If you’re seeking ways to reduce debt or lower your overall interest spending, it can be beneficial to consider debt consolidation solutions as well as reviewing your individual spending categories.
How much extra should I pay each month?
There’s no universal answer. Even small increases can help, but the best amount is one you can consistently manage to make each month, without harming your monthly budget. Because any extra payment you make goes directly toward your prinicpal balance, you may be surprised by how little it takes to make a significant impact over time.
Final Thoughts: Compare Your Options Before You Commit
Paying off your auto loan early can reduce interest and free up monthly cash flow, but it’s only one piece of your complete financial profile. Your interest rate, other debts, and overall budget all play a role in deciding whether making extra payments is the best move.
After using this auto loan early payoff calculator, consider exploring related tools and options. Compare auto refinance providers, run some scenarios with our debt consolidation calculator, or review some personal loan options to help you choose the strategy that saves the most money and best fits your long-term financial goals.