Car loan extra payment calculator
This car loan extra payment calculator shows what a regular extra payment does to your payoff date and interest, month by month.
Amortization schedule
| Year | Principal | Interest | Extra | Balance |
|---|---|---|---|---|
| 1 | $4,145.49 | $2,078.91 | $900.00 | $24,954.51 |
| 2 | $4,537.20 | $1,687.20 | $900.00 | $19,517.31 |
| 3 | $4,959.30 | $1,265.10 | $900.00 | $13,658.01 |
| 4 | $5,414.18 | $810.22 | $900.00 | $7,343.83 |
| 5 | $5,904.37 | $320.03 | $900.00 | $539.46 |
| 6 | $539.46 | $3.37 | $0.00 | $0.00 |
Small extras add up
An extra $50 or $100 a month looks small, but over a 72-month loan it can remove several months and hundreds of dollars of interest. The earlier in the loan you start, the bigger the effect, because extra principal early reduces every later month’s interest.
Round-up and biweekly strategies work the same way: paying half the monthly amount every two weeks makes 26 half payments, which equals 13 full payments a year, one extra annually.
Make sure the extra goes to principal
Pay online with the principal-only option, or note it on the check. Without that instruction some lenders hold the money against the next due date. After the first extra payment, check the statement: the balance should fall by the extra amount plus the regular principal portion.
How much extra helps
On $30,000 at 7.5% over 6 years, an extra $75 a month saves $1,182 in interest and finishes the loan 11 months early.
| Extra / month | Months saved | Interest saved |
|---|---|---|
| $0 | 0 | $0 |
| $50 | 7 | $833 |
| $100 | 14 | $1,494 |
| $200 | 23 | $2,475 |
| $400 | 35 | $3,687 |
Frequently asked questions
How do I make a principal-only payment?
Use the lender’s online portal option for extra principal or call and ask. Confirm on the next statement that the balance dropped as expected.
Is biweekly payment worth it?
It equals one extra monthly payment a year. If your lender accepts biweekly payments with no fee and applies them promptly, it shortens the loan.
Do extra payments always reduce the loan term?
If your lender applies them to principal, yes. Some lenders treat extra money as an early payment of the next installment instead, so tell them to apply it to principal.
Is there a prepayment penalty?
Most auto loans and mortgages today have none, but some do, so check your loan agreement.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.