Auto Loan Payoff Calculator
See how much you can save by paying off your auto loan early. Make informed decisions about your car financing.
How Auto Loan Interest Works
Understanding how auto loan interest works is crucial for making informed financial decisions. When you make a car payment, a portion goes toward the principal (the amount you borrowed) and the rest goes toward interest.
Auto loans typically use simple interest, which means interest is calculated based on your remaining loan balance. As you pay down your loan, less of each payment goes toward interest and more goes toward principal.
Making extra payments can significantly reduce the total interest you pay over the life of the loan and help you pay off your loan faster. This is because extra payments reduce your principal balance, which in turn reduces the interest that accrues.
Key Terms to Know
Principal
The original amount borrowed, excluding interest.
APR (Annual Percentage Rate)
The yearly interest rate on your loan, including fees.
Loan Term
The length of time you have to repay the loan.
Amortization
The process of paying off debt with regular, scheduled payments.
Example: $28,000 Loan Calculation
Loan Details:
- Loan amount: $28,000
- Interest rate: 4.5% APR
- Loan term: 60 months (5 years)
- Monthly payment: $521.65
With $100 Extra Monthly Payment:
- Total interest without extra payments: $3,299.00
- Total interest with extra payments: $2,261.28
- Interest savings: $1,037.72
- Time savings: 11 months
By adding just $100 extra to your monthly payment, you could save over $1,000 in interest and pay off your loan almost a year earlier!
Tips for Paying Off Your Auto Loan Faster
Make Bi-Weekly Payments
Instead of making one monthly payment, make half-payments every two weeks. This results in 26 half-payments, or 13 full payments per year instead of 12.
Round Up Your Payments
If your payment is $521.65, round up to $550 or $600. These small extra amounts add up over time and can significantly reduce your loan term.
Apply Windfalls to Principal
Use tax refunds, bonuses, or other unexpected income to make lump-sum payments toward your principal balance.
Crypto Gaming Options
Explore the exciting world of cryptocurrency gaming with our trusted partners. Enjoy secure transactions, anonymous play, and instant withdrawals.
Crypto Casino
Experience the thrill of casino games with cryptocurrency. Play slots, table games, and live dealer options.
Crypto Sports Betting
Bet on your favorite sports using cryptocurrency. Enjoy competitive odds, live betting, and quick payouts.
Crypto Poker
Join poker tables with players from around the world. Play with cryptocurrency for added privacy and security.
Note: Cryptocurrency gambling may not be legal in all jurisdictions. Please ensure you comply with your local laws and regulations before participating.
Success Stories
See how others have used our auto loan payoff calculator to save money and become debt-free faster.
Sarah Johnson
Denver, CO
"I was able to save over $2,300 in interest by making extra payments on my auto loan. This calculator helped me see exactly how much I could save!"
Interest Saved
$2,300
Time Reduced
14 months
Michael Rodriguez
Austin, TX
"After refinancing my auto loan and adding just $75 extra per month, I'll pay off my car a full year earlier. The amortization schedule made it easy to understand."
Interest Saved
$1,850
Time Reduced
12 months
Jennifer Lee
Seattle, WA
"I was skeptical about making extra payments, but seeing the numbers in black and white convinced me. Now I'm on track to be debt-free much sooner!"
Interest Saved
$3,100
Time Reduced
18 months
Join thousands of satisfied customers who have taken control of their auto loans.
Calculate Your Savings Now