Pay Down Auto Loan Calculator
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
Paying down your auto loan faster can save you thousands in interest over time. This calculator helps you determine how much extra you should pay each month to reach your goal faster.
How to Use This Calculator
To use the pay down auto loan calculator:
- Enter your current loan balance
- Input your current monthly payment amount
- Specify your loan term in years
- Enter your current annual interest rate
- Set your target payoff date
- Click "Calculate" to see your recommended extra payment amount
The calculator will show you how much extra you need to pay each month to reach your target payoff date, along with the total interest saved.
Formula Used
The calculator uses the following formula to determine the optimal extra payment amount:
Extra Payment = (P × r × (n - m)) / (1 - (1 + r)^(-n))
Where:
- P = Current loan balance
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (loan term in years × 12)
- m = Number of payments already made (current age of loan in months)
This formula calculates the amount needed to pay off the loan in the specified time frame by adjusting your monthly payment.
Worked Example
Let's say you have a $20,000 auto loan with a 5-year term at 4.5% annual interest. You've been making payments for 2 years and want to pay off the loan in 3 more years.
| Input | Value |
|---|---|
| Current loan balance | $20,000 |
| Current monthly payment | $350 |
| Loan term (years) | 5 |
| Annual interest rate | 4.5% |
| Target payoff date | 3 years from now |
Using the calculator, you would find that you need to pay an extra $100 each month to pay off the loan in 3 years instead of 5. This would save you $1,200 in interest over the life of the loan.