Enter your current auto loan balance, interest rate and remaining term, then add extra monthly or one-time principal payments to estimate potential interest savings and a faster payoff date.
Compare your remaining scheduled payments with an accelerated payoff strategy.
Compare estimated payment count, interest and payoff timing.
This annual summary uses the accelerated payment strategy entered above.
| Year | Beginning Balance | Regular Payments | Extra Principal | Principal Paid | Interest Paid | Ending Balance |
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Interest on many auto loans is calculated using the outstanding principal balance. Applying additional money to principal reduces that balance sooner.
A lower balance can reduce future interest charges and may allow the loan to be paid off before its original scheduled end date.
Adding the same extra amount each month creates a predictable accelerated payoff strategy. Even a relatively modest extra payment can affect the remaining loan term.
Tax refunds, bonuses or other lump sums can also be applied to principal. A payment made earlier in the repayment period generally has more future payments available to benefit from the reduced balance.
Before sending additional money, verify with your lender or servicer that the payment will be applied to principal rather than simply advancing the next payment due date.
Most consumer auto loans allow early payoff, but loan terms vary. Review your contract for any relevant prepayment provisions.
Actual payoff amounts can differ because of daily interest, payment timing, lender calculation methods and other contract terms.
If additional money is applied directly to principal, it may reduce the outstanding balance sooner. A lower balance can reduce future interest and shorten the repayment period.
The result depends on your current balance, interest rate, remaining term and the amount of additional principal you pay. Enter different extra-payment amounts above to compare scenarios.
Not always. Lender practices differ. Confirm how your lender applies additional payments and whether you need to provide special instructions.
Reducing principal earlier generally gives the lower balance more time to affect future interest charges, although actual results depend on the loan's interest calculation method.
You can use the one-time payment field to estimate how a lump-sum principal payment might affect the loan. Verify payment instructions with your lender before sending the funds.
Auto loans may accrue interest daily, and an official payoff quote can include interest through a specific date or other contract amounts. This calculator provides an estimate rather than an official payoff quote.
Paying off a loan changes your credit profile, but the effect on a credit score depends on the scoring model and the rest of your credit history. This calculator does not estimate credit-score changes.