If you have an auto loan and want to pay it off sooner, you might be wondering how much interest you could save by paying a little bit more each month.
The calculator will tell you how many months you’ll cut from your loan’s term and how much interest you’ll save overall once you enter how much more you want to pay each month. With the amount left on the loan for each subsequent month until the vehicle is paid off, it can also demonstrate how quickly you are paying down the loan.
If you’re considering trading in the car before it’s paid off and unsure of how much to deduct from the anticipated trade-in value, this information is useful to have.
Number of months remaining
Total number of months remaining on your original auto loan.
Total number of months remaining on your initial auto loan
Your auto loan’s initial financing amount, not to be confused with the outstanding balance or principal balance
Your proposed extra payment per month. This payment will be used to reduce your principal balance.
Depending on the original loan amount, term, and interest rate, you must make a monthly principal and interest payment.
Scheduled payment plus additional monthly payment.
Total amount of interest you would save by making accelerated payments until your loan was paid off
Early Auto Loan Payoff Calculator FAQs
When you increase your monthly car payments, a pay-off car loan calculator will show you how much time you can cut from your car payment and how much interest you can save.
Long-term auto loans are excellent, but they accrue a lot of interest that must be paid over time. By making additional monthly payments, our auto loan calculator will demonstrate how much you can save on these interest rates.
Using our auto loan early payment calculator, you can estimate your amortization schedule. You will be shown your exact balance at any point during the loan’s life, for both regular payments and accelerated payment plans that involve additional payments.
Yes, there is a remaining car loan payoff calculator. You can use this car loan early payment calculator to determine exactly how much of a loan you still have to pay. However, you will have to provide information regarding the loan’s size, term, and additional payment.
Making extra monthly payments with the aid of an auto loan early payment calculator can help you save money. When you provide information about the loan term, loan amount, intended additional monthly payment, current payment, and interest rates, it functions. The report you receive details how much you saved on the loan in terms of time and money.
A great way to shorten the term of a car loan and reduce interest costs is to make a sizable payment on the principal balance. Our auto loan early payment calculator can help you do this successfully. This calculator’s calculations will show you exactly how much time and money you’re saving.
This is up to you. There is no restriction on how quickly you can pay off your auto loan. Long-term costs will decrease the faster you pay it off. This is due to the fact that you will incur lower interest costs. However, you must follow the instructions of an auto loan early payment calculator in order to develop a realistic budget and financial plan.
This is up to you. There is no restriction on how quickly you can pay off your auto loan. Long-term costs will decrease the faster you pay it off. This is due to the fact that you will incur lower interest costs. However, you must follow the instructions of an auto loan early payment calculator in order to develop a realistic budget and financial plan.
If you want to know how much it will cost you to pay off your car loan within a certain time frame, you can use the auto loan early payment calculator backward. By doing this, you will determine how much you will need to pay back over the course of the loan, on a monthly basis. To reduce your loan interest, you can make additional payments.
It is best to use an auto loan early payment calculator to determine how much and how long you will have to repay a car loan when you make extra payments. You provide it with information about your loan’s term, amount, current and future monthly payments, annual interest rate, and other relevant details. The calculator will then show you how much you can save on interest and how long it will take to pay everything off.
Considering paying off your auto loan early?
Most auto loan lenders allow borrowers to prepay on the principal balance of their loan without a prepayment penalty. (Double check with the lender servicing the loan payments).
Using this calculator, run some numbers to see if you can afford to either increase your payments or make a one-time payment toward the principal balance. In the long run, you will pay less interest if you pay off your auto loan early or increase your monthly prepayment amount. This reduces the length of time the loan is in effect. Although it might be difficult to pay a larger amount up front or increase your monthly payment, paying off your loan early could end up saving you thousands of dollars in the long run.
Vehicles last longer as well as auto loans
Better transmissions and engines, enhanced corrosion protection, and more robust parts all contribute to vehicles lasting a lot longer than their forerunners.
With cars lasting longer, lenders are willing to make longer auto loans as well. Auto loans of five, six, even seven years are increasingly common – because the lender is confident the vehicle will keep running that long.
When you’re looking at $25,000 or more for even a basic new vehicle, it’s important to consider that longer loans mean lower monthly car payments. A good used car can easily run $10,000 or more.
Unfortunately, over time, those low monthly payments end up costing you money. Because of how loan amortization works, interest charges accumulate over time, and each year you add results in disproportionately higher interest costs overall.
Perhaps you recently purchased a car with a lengthy auto loan, and you’re wondering how much quicker you could pay it off by making a little extra payment each month. Or perhaps you’re considering taking out a long-term loan to buy a car because the minimum payments are lower, but you actually want to pay it off sooner and are wondering how much more money you’d need to put aside each month to do that. This gives you some flexibility in case you ever run out of money.
Using the Auto Loan Calculator
To experiment with how changing the additional payment would affect how quickly you can pay off the loan and how much interest you’d save, adjust that number using the slide bar. As you change the extra payment figure, your results are immediately displayed in the blue field at the top of the calculator and immediately below it on the right.
Enter the number of months left on your auto loan first, followed by the total loan term, in months. Simply enter the full length of the loan in both places to see the impact of making extra payments over the entire loan term. Enter the loan amount and interest rate next. Your regular monthly loan payment will be shown right away by the calculator in the location indicated. Enter any additional funds you’d like to contribute each month after that. At the top of the page, you’ll see how many months you’ll cut your loan by and how much money you’ll save on interest.
If you want to shorten your loan by a certain length of time and want to know how much extra youd have to pay every month to do so, use the slider to adjust the additional monthly payment figure until the blue field at the top shows the length of time you want to shorten your loan term by.
By entering “0” in the additional monthly payments field, you can also use this as a standard auto loan calculator. It will calculate your regular payments and produce a report with your total payments and interest.
Amortization table and interest
For the full amortization schedule, choose whether you want to see monthly or annual amortization then click “View Report” at the top of the page. Youll then see a page showing how much youll shorten your loan by, the graph illustrating your amortization, a summary of the loan and a line-by-line table showing the amortization of the loan over time and comparing regular vs. accelerated payments.
The amortization schedule is helpful if you plan to trade in your car at some point in the future because it shows you exactly how much you will still owe on the loan at any given time. You can then calculate your trade-in value using this information along with the vehicle’s depreciation.
Other Mortgage and Financial Calculators
This page gives you access to more than 100 other financial calculators, covering a wide range of situations in addition to the standard mortgage calculator. Choose from calculators that address a range of topics, including taxes, retirement planning, investments, student loans, auto loans, and more.
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FAQ
Is it smart to pay extra principal on car?
Although making additional principal payments on your auto loan won’t lower your monthly payment, there are other advantages. Making principal payments helps you pay down the loan faster, avoid interest charges, and save money.
What happens if I pay only principal on my car loan?
A principal-only car payment is one that is made in addition to your regular monthly payment but only goes toward the principal balance of your auto loan. The amount you originally borrowed, minus any interest, is known as the principal. This additional payment is intended to hasten the debt’s repayment process.
How do you calculate principal on a car loan?
By the number of monthly installments you’ll be making over the course of the year, divide your interest rate by that amount. Add it to the remaining balance of your loan, which for the initial installment will be the full principal amount.
What happens if I pay an extra $100 on my car loan?
If you pay more, your car payment won’t decrease, but you’ll pay off the loan more quickly. Depending on how quickly you pay off the loan and how much your interest rate is, paying more can also help you save money on interest.