Vehicle Loan Payoff Calculator
Extra Payment Savings
See how extra payments reduce your loan term and interest
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Pay Off by Target Date
Calculate the payment needed to pay off by a specific date
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Formula
Months to Pay Off = -ln(1 - rB/P) / ln(1+r); Interest Saved = Total Interest (standard) - Total Interest (with extra payments)
Frequently Asked Questions
Is it worth paying off a car loan early?
Usually yes, if your interest rate is above 4-5% and there is no prepayment penalty. You save on interest and free up monthly cash flow. However, if your rate is very low (0-2%), you might earn more by investing the extra money instead.
Do car loans have prepayment penalties?
Most modern car loans do not have prepayment penalties, but some lenders (especially subprime) may charge one. Check your loan agreement for terms like 'prepayment penalty' or 'early payoff fee.' Federal law requires disclosure of any prepayment penalty.
Should I pay extra toward principal or make lump sum payments?
Both methods save interest. Consistent extra monthly payments are easier to budget. Lump sum payments (e.g., tax refund, bonus) create immediate impact. Always specify that extra payments should be applied to principal, not future payments.
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