Auto Loan Payoff Calculator
Enter your loan balance, interest rate, and monthly payment to see your payoff date, total interest, and exactly how much extra payments save you.
Enter Your Auto Loan Details
Added on top of your minimum. Even small amounts save thousands.
Enter your loan details to see your payoff timeline.
Why Auto Loan Interest Costs More Than You Think
The average car buyer pays thousands in interest over the life of their loan. Small extra payments and smarter payoff timing can cut that cost significantly.
Average new vehicle price
$48,000
Kelley Blue Book, 2024
Average new car loan APR
7.1%
Experian State of Automotive Finance, 2024
Total interest on a $35K 60-month loan
$6,600+
at 7.1% APR with minimum payments only
Proven Ways to Pay Off Your Car Loan Faster
Round up your payment every month
If your payment is $612, pay $650 or $700. Every extra dollar goes directly to principal, reducing the balance that interest accrues on next month. Rounding up by just $50/month on a $30,000 loan at 7% can shave 4 months off your payoff and save over $500 in interest.
Make one extra payment per year
Put a tax refund, bonus, or side income payment toward your auto loan once a year. On a 60-month loan, one extra $600 payment in year one can eliminate nearly two months of payments at the end and save hundreds in interest.
Refinance after 12 months of on-time payments
If you took a dealer loan at a high APR, refinancing through a credit union or online lender after a year of good payment history can drop your rate by 1-3 percentage points. Even a 1% rate reduction on $25,000 saves roughly $700 over the life of the loan.
Avoid stretching to 72 or 84 months
Longer loan terms lower your monthly payment but dramatically increase total interest. A $35,000 loan at 7.1% costs about $6,600 in interest over 60 months, but $9,300 over 84 months. You also risk going underwater (owing more than the car is worth) for longer.
Frequently Asked Questions
Does paying extra on a car loan reduce the principal?
Yes, but you need to specify it. When making an extra or larger payment, indicate that the overage should be applied to principal, not the next scheduled payment. Most lenders allow this in their online portal or by noting it on a check. Without that instruction, some lenders will apply extra funds as an advance payment on your next due date, which does not reduce your balance or save interest.
Is there a penalty for paying off a car loan early?
Most auto loans from banks and credit unions have no prepayment penalty. However, some dealer-arranged financing or buy-here-pay-here loans include prepayment fees. Check your loan agreement for any mention of a prepayment penalty or "rule of 78s" interest calculation before aggressively paying down the balance.
What happens to my GAP insurance if I pay off my loan early?
GAP insurance (Guaranteed Asset Protection) covers the difference between your loan balance and the car's market value if the car is totaled. When you pay off your loan, GAP coverage is no longer needed. If you paid for GAP upfront, you may be eligible for a prorated refund for the unused portion. Contact your insurer or dealer finance office to request a cancellation refund.
Can I trade in my car if I still owe money on it?
Yes, but the outcome depends on whether you have positive or negative equity. If your car is worth more than you owe, the dealer applies the difference as a down payment on your next vehicle. If you owe more than it's worth (negative equity), the remaining balance typically rolls into your new loan, which can put you even deeper underwater. Use this calculator to see how quickly you can build positive equity.
How does APR differ from interest rate on a car loan?
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus any fees (origination fees, dealer markup). For most simple auto loans, the APR and interest rate are the same or very close. Enter your APR in this calculator for the most accurate total interest estimate.
Have Other Loans Too?
PayoffPath lets you plan your auto loan alongside a mortgage, student loans, and credit cards in one place. See which to pay first and track your path to being completely debt-free.
Plan All Your Loans Together