Car Loan Payoff Calculator
Calculate how much you can save by paying off your car loan early. See your payoff amount, interest savings, and time saved with our free calculator.
Enter Your Loan Details
20.0% of loan completed
Extra payment to reduce balance and save more interest
Loan Summary
Payoff Results
Enter your loan details to see payoff results
How to Use Our Car Loan Payoff Calculator
Our car loan payoff calculator helps you determine the exact amount needed to pay off your auto loan early and shows you how much money you can save in interest. This tool is essential for making informed decisions about early loan payoff.
What You Need to Calculate Loan Payoff:
- Original Loan Amount: The total amount you originally borrowed
- Current Balance: The remaining amount you owe on the loan
- Interest Rate: Your current annual percentage rate (APR)
- Original Term: The total length of your loan in months
- Payments Made: Number of payments you've already made
- Additional Payment: Extra amount you want to pay (optional)
Understanding Your Payoff Results:
- Payoff Amount: The exact amount needed to pay off your loan completely
- Interest Saved: Money you'll save by not paying future interest
- Time Saved: Number of months you'll eliminate from your loan term
- Total Savings: Combined savings from interest and time
Benefits of Early Loan Payoff:
- Save money on interest payments
- Improve your debt-to-income ratio
- Free up monthly cash flow
- Build equity faster
- Reduce financial stress
Before Paying Off Early:
Always check your loan agreement for prepayment penalties. Some lenders charge fees for paying off loans early, which could reduce or eliminate your savings. Also consider whether you have other higher-interest debt that should be prioritized first.
Frequently Asked Questions About Car Loan Payoff
How do I calculate my car loan payoff amount?
Your payoff amount is typically your current loan balance plus any accrued interest and fees. Contact your lender for the exact payoff amount, as it may include additional charges. Our calculator provides an estimate based on your current balance and interest rate.
Will I save money by paying off my car loan early?
Yes, paying off your car loan early will save you money on interest payments. The earlier you pay it off, the more interest you'll save. However, check for prepayment penalties that might reduce your savings. Our calculator shows you exactly how much you can save.
What is a prepayment penalty?
A prepayment penalty is a fee charged by some lenders when you pay off your loan before the scheduled end date. These penalties can range from a few hundred dollars to several months of interest. Always check your loan agreement before making early payments.
Should I pay off my car loan early or invest the money?
This depends on your car loan interest rate and potential investment returns. If your loan rate is higher than expected investment returns, paying off the loan is usually better. Consider your overall financial situation, including emergency savings and other debt obligations.
How do I request a payoff amount from my lender?
Contact your lender directly by phone or through their online portal. You'll need your account number and may need to specify the date you want the payoff amount for. Most lenders provide payoff amounts valid for 10-30 days.
Can I make extra payments on my car loan?
Most car loans allow extra payments, but check with your lender about their specific policies. Some lenders apply extra payments to future payments rather than principal, which doesn't save you interest. Always specify that extra payments should go toward principal.
What happens to my credit score when I pay off my car loan?
Paying off your car loan can initially cause a small dip in your credit score due to the loss of credit mix and account age. However, it will improve your debt-to-income ratio and reduce your overall debt burden, which are positive factors for your credit health.
Is it better to refinance or pay off my car loan early?
If you can get a significantly lower interest rate through refinancing, that might be better than paying off early. However, if you're close to paying off the loan, the savings from refinancing might not justify the costs. Use our refinance calculator to compare options.