Car Loan Payoff Calculator

The Car Loan Payoff Calculator helps you determine exactly how long it will take to pay off your car loan with your current monthly payments. You can also explore the impact of making extra payments — either a recurring monthly addition or a one-time lump sum — to see how much interest you can save and how many months you can shave off your loan term.

How Car Loan Payoff Calculations Work

Car loans are amortized loans, meaning each monthly payment is split between interest and principal. Early in the loan, a larger portion of your payment goes toward interest. As the balance decreases, more of each payment goes toward principal, accelerating payoff toward the end.

The Payoff Formula

For a standard fixed-rate car loan, the number of months to pay off is calculated using:

Where:

• n = number of monthly payments until payoff
• r = monthly interest rate (annual rate ÷ 12 ÷ 100)
• P = current loan balance (principal)
• M = monthly payment amount

How to Use This Calculator

1. Enter your current loan balance — the remaining amount owed, found on your latest statement.
2. Enter your annual interest rate (APR) — the yearly rate charged on your loan, typically 3%–15%.
3. Enter your monthly payment — the amount you pay each month toward the loan.
4. Add extra payments (optional) — expand the extra payments section to enter a recurring monthly extra amount or a one-time lump sum payment at a specific month.
5. Click Calculate to see your payoff timeline, interest breakdown, comparison charts, and full amortization schedule.

5 Strategies to Pay Off Your Car Loan Faster

Understanding Your Results

Payoff Timeline

The calculator shows how many months it will take to fully pay off your car loan at your current payment rate. If you add extra payments, you will see both the standard and accelerated timelines side by side, along with the exact months and interest saved.

Interest vs. Principal

The doughnut chart breaks down your total loan cost into principal (the original amount borrowed) and total interest paid over the life of the loan. A higher interest-to-principal ratio indicates more of your money goes to the lender rather than toward owning the car.

Amortization Schedule

The month-by-month table shows exactly how each payment is allocated between interest and principal, along with cumulative interest paid and remaining balance. This schedule helps you:

• See how the interest-to-principal ratio shifts over time
• Identify the best time to make extra payments for maximum impact
• Track milestones like reaching 50% or 75% payoff

Should You Pay Off Your Car Loan Early?

Paying off your car loan early saves interest, but consider these factors first:

Frequently Asked Questions

How is car loan payoff time calculated?

Car loan payoff time is calculated using the amortization formula. Each month, interest accrues on the remaining balance (balance × monthly rate), and your payment is split between interest and principal. The number of months until the balance reaches zero is your payoff time. The formula for standard payoff months is: n = −log(1 − (r × P / M)) / log(1 + r), where r is the monthly interest rate, P is the principal, and M is the monthly payment.

How much can I save by making extra payments on my car loan?

Extra payments go directly toward reducing your principal balance, which means less interest accrues in future months. Even small extra payments can save significant money. For example, paying an extra $100/month on a $25,000 loan at 6% interest could save you over $1,000 in interest and pay off your loan more than a year early.

Should I pay off my car loan early?

Paying off a car loan early can save you money on interest, but consider these factors: 1) Check for prepayment penalties in your loan agreement. 2) Compare your car loan interest rate to potential investment returns. 3) Ensure you have an emergency fund before making extra payments. 4) Consider whether the extra money could be better used paying off higher-interest debt first.

What is the difference between a one-time payment and extra monthly payments?

A one-time extra payment is a single lump sum applied to your principal at a specific point during the loan. Extra monthly payments are additional amounts added to every monthly payment. Both reduce your principal faster, but recurring extra monthly payments typically save more interest over the life of the loan because they consistently reduce the balance that accrues interest each month.

Why is most of my car payment going to interest at the beginning?

Car loans use amortization, where interest is calculated on the remaining balance each month. At the start, your balance is highest, so a larger portion of each payment covers interest. As you pay down the principal, less interest accrues and more of each payment goes toward the principal. This is why extra payments early in the loan have the biggest impact on total interest savings.

Additional Resources

• Amortization - Wikipedia
• Car Finance - Wikipedia