Result
How to use this calculator
Enter your payoff balance (from your lender, not the old sales price), APR, and current monthly payment. Add any extra you can pay each month — even $25 helps. The calculator simulates the loan month by month and compares it with paying only the minimum. Share a pre-filled link like ?balance=14500&rate=7.9&payment=420&extra=50.
The formula
Each month, interest = balance × (APR ÷ 12); everything above that reduces the balance. Adding extra cash directly to principal shortens the loan and cuts the interest, since interest is only charged on what you still owe. The base-payment comparison runs the identical simulation with extra = $0.
Example: $14,500 at 7.9%, $420 payment + $50 extra
With the $420 minimum the loan runs about 40 more months and costs roughly $2,000 in interest. Add $50 a month and you finish about 5 months earlier and save roughly $240 in interest — the calculator gives the exact figures for your numbers.
FAQ
Are there penalties for paying off a car loan early?
Most modern auto loans have no prepayment penalty, but some lenders (especially with subprime or dealer-arranged financing) charge one or use precomputed interest. Check your contract for 'prepayment penalty' or ask your lender. Also confirm extra payments are applied to principal, not held as an early next-payment.
How much does an extra $50 a month save?
It depends on balance, rate and remaining term — on a typical $14,500 balance at 7.9%, roughly $250–$300 in interest and a few months sooner. The earlier in the loan you add extra, the more it saves, because interest is charged on the (larger) remaining balance each month.
Should I pay off my car loan or my credit cards first?
Almost always the credit cards: they charge far higher rates (often 20%+ APR vs 5–9% on auto loans) and usually have no collateral at stake. One popular method is listing debts smallest balance first and rolling payments forward — the debt snowball. Pay the car early only once high-rate debt is gone and you have an emergency fund.