Car Loan Early Payoff Calculator
See how much time and money you save by making extra car payments.
Enter your balance, rate, and extra payment amount.
Early Payoff Savings
Extra car payments go directly toward your principal, reducing total interest paid and shortening the loan.
New Payoff Time = solve for n where: Balance = (Payment + Extra) × [(1−(1+r)^−n) / r]
Interest Saved = Total Interest (normal) − Total Interest (with extra payments)
Impact of extra payments on a $25,000 loan at 6.5% for 60 months:
- $0 extra: 60 months, $4,175 total interest
- $50 extra: 52 months, $3,476 interest (saves $699, 8 months)
- $100 extra: 46 months, $2,904 interest (saves $1,271, 14 months)
- $200 extra: 38 months, $2,082 interest (saves $2,093, 22 months)
Strategies for extra payments:
- Round up to the nearest $50 or $100
- Apply tax refunds and bonuses
- Make biweekly half-payments (equals 13 full payments/year)
- Apply any raises directly to the payment
Before making extra payments:
- Check for prepayment penalties (uncommon but possible)
- Ensure extra payments go to principal, not future payments
- Build an emergency fund first