Auto Loan Payoff

Free Auto Loan Payoff calculator with clear step-by-step results.

About Auto Loan Payoff

Solves the amortisation formula for the number of months rather than the payment, so you can see how much sooner a car loan clears when you add to the scheduled instalment - and how much interest that acceleration actually saves.

Formulas

Months remaining

n = -ln(1 - r x B / P) / ln(1 + r), where r is the monthly rate, B the balance and P the payment

Interest saved

Saved = (base payment x base months - B) - (accelerated payment x accelerated months - B)

Worked example

With the default values below, Auto Loan Payoff returns Months to pay off of 39. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current loan balanceminimum 0 $: 18,000 $
Annual interest rate (APR)accepts 0–40 %: 6.9 %
Scheduled monthly paymentminimum 1 $: 420 $
Extra paid each monthminimum 0 $: 100 $

Results

Months to pay off: 39
Years to pay off: 3.25
Total interest you will pay: $2,280.00
Interest saved by the extra payment: $720.00

Step by step

1Values used
2Months remaining
3Interest saved
4Months to pay off= 39
5Years to pay off= 3.25
6Total interest you will pay= $2,280.00
7Interest saved by the extra payment= $720.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What if my payment is lower than the monthly interest?

The balance would never fall, so the calculation caps the term at 600 months to flag it. You need a payment above balance x monthly rate for the loan to amortise at all.

Do all lenders apply extra payments to principal?

Not automatically. Some hold the surplus as a prepaid instalment, which does not reduce interest. Tell the lender in writing to apply extra amounts to principal.