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Calculator for Auto Loan Payoff

Reviewed by Calculator Editorial Team

Paying off your auto loan early can save you thousands in interest. Our calculator helps you determine exactly how much you need to pay to eliminate your car loan balance.

How to Use This Calculator

To calculate your auto loan payoff amount:

  1. Enter your current loan balance in the "Loan Balance" field
  2. Input your current interest rate (APR) in the "Interest Rate" field
  3. Select the term of your loan from the dropdown menu
  4. Click "Calculate" to see your results

The calculator will show you the total amount you'll pay over the life of your loan, the total interest paid, and the monthly payment amount.

Formula Used

The calculator uses the standard auto loan payment formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ] Where: M = monthly payment P = loan principal (balance) i = monthly interest rate (APR/12) n = number of payments (term in months)

This formula accounts for the interest you'll pay over the life of the loan and helps you understand the true cost of your auto financing.

Worked Example

Let's say you have a $20,000 auto loan with a 5% APR and a 60-month term:

  1. Monthly interest rate = 5%/12 = 0.4167%
  2. Number of payments = 60
  3. Using the formula:
    M = $20,000 [ 0.004167(1 + 0.004167)^60 ] / [ (1 + 0.004167)^60 - 1 ] M ≈ $386.64
  4. Total paid over 60 months = $386.64 × 60 = $23,198.40
  5. Total interest paid = $23,198.40 - $20,000 = $3,198.40

This example shows that paying off your loan early could save you $3,198.40 in interest.

Frequently Asked Questions

How accurate is this calculator?

This calculator uses standard financial formulas and provides accurate results based on the inputs you provide. For precise results, use your actual loan terms and current balance.

Can I use this for refinancing?

Yes, you can use this calculator to estimate your new payments if you refinance your auto loan. Simply enter your new loan terms to see the potential savings.

What if I make extra payments?

Extra payments will reduce your loan term and total interest paid. You can use this calculator to see how different payment amounts affect your loan payoff.

Is this calculator free to use?

Yes, our auto loan payoff calculator is completely free to use with no hidden fees or subscriptions required.