Car Loan Payoff

Enter your current balance and add an extra monthly payment to see months saved and interest reduced.

Loan Details

Enter your current balance and add an extra monthly payment to see months saved and interest reduced.

Current loan

$

How much you still owe

%

Yearly cost of your loan as a percentage

$

Your required payment each month

Extra payment

Optional amount added each month.

$

Additional amount to pay each month

Interest Saved$701.94

Interest Saved

$701.94

13 months sooner — April 2030

13 months sooner

Consider applying tax refunds or windfalls the same way—they compound with monthly extras.

On a $$20,000.00 balance at 6% APR, paying $400.00 plus $100.00 extra each month clears the loan in 45 months instead of 58.

Without Extra Payments

Payoff Date
With current payments
May 2031
Remaining Months
Payments remaining
58
Total Payments
Principal and interest
$23,072.27

With Extra Payments

Payoff Date
With extra payments
April 2030
Remaining Months
Payments remaining
45
Total Payments
Principal and interest
$22,370.33

Savings

Interest Saved
From extra payments
$701.94
Months Saved
Sooner payoff
13 months

Impact of Extra Payments

Total Cost Comparison

Payoff Time Comparison

Saves $701.94 and 13 months.

How the car loan payoff works

This calculator shows what happens when you add extra money to your monthly car payment. Enter your current balance, interest rate, and regular payment, then an extra amount — it rebuilds the payoff schedule and shows how many months earlier the loan ends and how much interest you avoid.

Extra payments punch above their weight because every extra dollar goes straight to principal. Interest is charged on your remaining balance, so shrinking the balance early means every future month charges you less interest. On a $20,000 balance at 6% with a $400 payment, an extra $100 a month pays the loan off about a year sooner and saves several hundred dollars in interest.

Two practical notes: confirm your lender applies extra amounts to principal (not "next month's payment") — sometimes this requires checking a box or calling — and make sure your loan has no prepayment penalty, though most auto loans today do not. If you have higher-interest debt like credit cards, paying that down first usually saves more.

Frequently asked questions

How do extra payments save money on interest?

Interest accrues on your remaining balance each month. Extra payments reduce the balance immediately, so every subsequent month charges less interest — and the savings compound over the remaining life of the loan.

Is it better to pay extra monthly or in occasional lump sums?

Mathematically, money applied sooner saves more, so a consistent monthly extra usually beats saving up for an annual lump sum. The best plan is whichever one you will actually stick to — even $25 extra per month moves the payoff date.

Will my lender automatically apply extra money to principal?

Not always. Some lenders treat extra amounts as an early payment of next month's bill, which saves you nothing in interest. Check your loan portal for a "principal only" option, or contact the lender to confirm.

Should I pay off my car loan or save the money instead?

Compare rates. If your loan APR is higher than what savings earn, paying it down gives a guaranteed return. But keep a small emergency fund first — paying the loan to zero while having no cash cushion can backfire if a surprise expense hits.

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