Auto Loan Early Payment Calculator
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Reviewed by Calculator Editorial Team
Making extra payments on your auto loan can save you thousands in interest over time. Our auto loan early payment calculator helps you determine exactly how much you'll save by paying off your loan early. Simply enter your loan details and see how much you can save by making additional payments.
How the Auto Loan Early Payment Calculator Works
The auto loan early payment calculator estimates the savings from making extra payments on your auto loan. It works by comparing the total interest paid over the life of the loan with and without extra payments. The calculator uses the following key inputs:
- Original loan amount
- Original loan term (in months)
- Original interest rate
- Extra payment amount
- Frequency of extra payments (monthly, bi-weekly, etc.)
The calculator then calculates the total interest paid in both scenarios and shows the difference. It also provides a breakdown of how much interest you'll save and how much earlier you'll pay off the loan.
How to Use the Auto Loan Early Payment Calculator
- Enter your original loan amount in the "Original Loan Amount" field.
- Enter your original loan term in months in the "Original Loan Term" field.
- Enter your original interest rate in the "Original Interest Rate" field.
- Enter the amount of your extra payment in the "Extra Payment Amount" field.
- Select how often you'll make the extra payment from the "Extra Payment Frequency" dropdown.
- Click the "Calculate" button to see your results.
The calculator will display the total interest saved, the new loan term, and a comparison chart showing your payment schedule with and without extra payments.
Formula Used in the Calculator
The calculator uses the following formulas to calculate the savings from early payments:
The calculator then compares the total interest paid with and without extra payments to determine the savings.
Example Calculation
Let's say you have a $20,000 auto loan with a 5% interest rate and a 60-month term. If you make an extra $200 payment each month, the calculator will show you:
- Total interest saved: $1,200
- New loan term: 52 months (8 months earlier)
- Total payments saved: $1,600
This example shows how making just $200 extra each month can save you over $1,200 in interest and pay off your loan 8 months earlier.