Auto Loan Amortization Extra Payment Calculator
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Reviewed by Calculator Editorial Team
This calculator helps you understand how making extra payments on your auto loan affects your amortization schedule. By paying more than the minimum each month, you can reduce the total interest paid and pay off your loan faster.
How the Calculator Works
The auto loan amortization extra payment calculator uses the standard loan amortization formula to project how your loan balance changes over time when you make additional payments. The calculator accounts for:
- Your current loan balance
- The original loan term
- The interest rate
- Your regular monthly payment
- Any extra payments you make
The calculator creates a detailed amortization schedule showing how your loan balance decreases month by month, how much interest is paid each month, and when the loan will be fully paid off.
How to Use This Calculator
- Enter your current auto loan balance in the "Loan Balance" field.
- Enter the original loan term in years in the "Loan Term" field.
- Enter your current interest rate in the "Interest Rate" field.
- Enter your regular monthly payment in the "Monthly Payment" field.
- Enter the amount of your extra payment in the "Extra Payment" field.
- Click the "Calculate" button to see the results.
The calculator will display:
- The total interest saved by making extra payments
- The new payoff date with extra payments
- A chart showing how your loan balance decreases over time
- A detailed amortization schedule
Formula Used
The calculator uses the following formula to calculate the loan amortization with extra payments:
Remaining Balance = P * (1 + r)^n - [PMT * ((1 + r)^n - 1)/r] - [Extra * ((1 + r)^n - 1)/r]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate / 12)
- n = Number of payments made
- PMT = Regular monthly payment
- Extra = Extra payment amount
This formula accounts for the regular payments plus the extra payments you make each month.
Worked Example
Let's look at an example to see how making extra payments affects your auto loan:
Example Scenario
- Loan Balance: $20,000
- Loan Term: 5 years
- Interest Rate: 5% APR
- Monthly Payment: $389.85
- Extra Payment: $100 per month
Without extra payments, this loan would take exactly 5 years to pay off, with a total interest cost of $2,997. By making an extra $100 payment each month, you can:
- Reduce the total interest paid to $1,997 (saving $1,000)
- Pay off the loan in 4 years and 4 months instead of 5 years
The chart in the calculator will show you exactly how your loan balance decreases faster with the extra payments.
Frequently Asked Questions
The amount you save depends on how much extra you pay each month and how long you make those payments. Generally, the more you pay above the minimum, the more you'll save in interest and the faster you'll pay off the loan.
No, making extra payments will not change your interest rate. The interest rate remains the same regardless of how much you pay each month.
Yes, you can make extra payments at any time. However, the most significant savings come from making extra payments as early as possible in the loan term, as this reduces the principal balance faster and saves more interest.
If you stop making extra payments, your loan will return to its original amortization schedule. The extra payments you made will have reduced the principal balance, but without continuing extra payments, your payments will be higher again to cover the remaining interest.