Car Loan Payoff Calculator
Enter your auto loan balance, APR and payment to see when it will be paid off, then add extra monthly payments, a one-time lump sum or biweekly payments to see the interest you save and the months you cut. It also estimates the payoff amount to give your lender.
Car loan payoff calculator
Payoff amount to give your lender
Pay it off by a target date
How paying a car loan off early works
Most US auto loans are simple interest loans: interest builds up each day on the balance you still owe (balance × APR ÷ 365). Every dollar above the required payment goes to principal, so the balance and the daily interest both shrink faster. That's why extra monthly payments, a one-time lump sum (a tax refund, say) or half-payments every two weeks all cut total interest.
- Biweekly: paying half your payment every 14 days makes 26 half-payments a year, the same as 13 monthly payments, plus interest is charged on a lower balance between payments. Confirm your lender applies each half-payment when it arrives instead of holding it.
- Payoff amount: the balance on your statement plus interest for the days since your last payment. Ask the lender for an official 10-day payoff quote before you send the final payment.
- Prepayment penalties: uncommon on auto loans but possible, and some older or subprime loans use the "Rule of 78s", which front-loads interest. Check your contract.
Tell your lender to apply extra money to principal, not to next month's payment, or it may just push your due date back.
Common questions
How do I calculate my car loan payoff?
Take your current balance and add the daily interest since your last payment: balance × APR ÷ 365 × days. $18,000 at 7.5% builds about $3.70 of interest a day.
Is it smart to pay off a car loan early?
It saves interest at your loan's APR and frees up the monthly payment. It usually makes sense once you have an emergency fund and no higher-rate debt such as credit cards.
How much does $100 extra a month save on a car loan?
On an $18,000 balance at 7.5% with a $450 payment, about 10 months and roughly $577 of interest. Enter your own numbers above.
Do biweekly payments pay off a car faster?
Yes. 26 half-payments a year equal 13 monthly payments, one extra payment a year, as long as your lender applies them right away.
Does paying off a car loan early hurt my credit?
Your score can dip a little when an installment account closes, but it usually recovers, and the lower debt helps your finances.
Sources
- Consumer Financial Protection Bureau: Paying off an auto loan early
- Federal Trade Commission: Financing or leasing a car
- CFPB: What is a payoff amount?
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.