Car Loan Payoff Calculator
A car loan is a simple-interest installment loan: each month interest accrues on the remaining balance at the rate divided by twelve, and your payment covers the interest first. On a $22,000 loan at 7.9% the scheduled payment of about $445 runs five years and costs roughly $4,700 in interest. Adding $100 a month ends it about a year early and saves close to $1,000.
This calculator shows your payoff date and total interest, then the effect of extra payments. Most auto loans have no prepayment penalty, but check the contract; a few use precomputed interest where early payoff saves less. Because cars depreciate, paying down a loan that is underwater also protects you if the car is totaled or sold.
Results
Your plan
Debt-free September 2030
In 4 years, paying $3,657 in interest.
At minimum payments only, these debts take 5 years 1 month and cost $4,702 in interest. With $100 extra a month you are debt-free in 4 years after $3,657 in interest.
Enable JavaScript to edit the numbers above and see your own plan, charts, and month-by-month schedule.
Frequently asked questions
Is it worth paying off a car loan early?
At rates above 6% or so, usually yes, especially early in the loan when most of each payment is interest. Below 4% the saving is small and the money may do more elsewhere. Also consider whether you owe more than the car is worth; paying that gap down protects you if the car is written off.
Does paying extra on a car loan reduce the interest?
On a simple-interest loan, which is most auto loans, yes: extra principal immediately reduces the balance that interest is charged on next month. On a precomputed-interest loan the interest is fixed up front and early payoff earns only a partial rebate. Your contract or lender will say which type you have.
Should I pay off my car or my credit cards first?
Credit cards, almost always, because their rates are typically three times higher. Keep the car payment on schedule, put every extra dollar on the highest-APR card, and come back to the car when the cards are gone. The main calculator ranks all your debts together so you can see the order.
How do I make sure extra payments go to principal?
Pay through the lender's site and choose principal-only if the option exists, or send a separate payment with instructions. Some lenders apply extra to future payments, which does not save interest. Check the next statement: the balance should fall by the full extra amount, not just the scheduled principal portion.
Will paying off a car loan early hurt my credit?
Closing an installment account can nudge your score down a few points for a short time because it reduces your credit mix and active accounts. The effect is minor and temporary. The interest saved and the freed-up monthly payment are worth far more than a few points, unless you are about to apply for a mortgage.