See how extra payments shorten your auto loan and how much interest you'll save — with a full month-by-month payment schedule.
This calculator estimates principal and interest only and assumes a simple-interest auto loan. It does not include taxes, fees, or add-ons. Results are estimates for general informational purposes and are not financial advice. Confirm figures with your lender.
Most U.S. auto loans use simple interest, charged on your remaining balance. When you pay more than your scheduled amount, the extra goes straight to principal, so less interest accrues going forward. Because cars depreciate, paying down the loan faster also helps you reach positive equity sooner — useful if you plan to sell or trade in.
This car loan payoff calculator compares your loan on the normal schedule with the same loan plus your extra payment, showing the months and interest you save.
If your auto loan carries a higher rate than what you could earn elsewhere, paying it down early is often a smart, guaranteed return. But check two things first: whether your loan has a prepayment penalty (rare, but some do), and whether you have higher-interest debt — like credit cards — that should be tackled first.
Yes. On a simple-interest auto loan, extra payments reduce your principal, so less interest accrues each month for the rest of the loan. You'll pay it off sooner and pay less interest overall.
Compare your loan's APR to your expected after-tax investment return. Paying off the loan is a guaranteed return equal to the rate; investing carries more risk and potential reward. Also clear any higher-interest debt first. This is a personal decision.
No. Extra payments shorten the loan, but the required monthly payment stays the same. To lower the payment itself, you would typically refinance.
Yes. Some lenders apply extra money to future payments instead of principal. Tell your lender to apply any extra amount directly to principal, and verify it on your next statement.