Your car loan
Your result
Estimates only, based on the numbers you enter and the rules shown. Not financial advice. Your lender or provider will use its own checks.
How it’s calculated
Each month, interest is charged on the balance (APR ÷ 12) and your payment is taken off. Paying extra goes straight to the balance, so less interest builds up every month after that. That is why a small extra payment can cut months or years off.
Before you pay off a car loan early
- Check for a prepayment penalty. Some auto loans charge a fee for paying early. Your loan contract will say. CFPB: prepayment penalties on auto loans
- Tell the lender the extra is for principal. Ask how to make principal-only payments so the extra isn’t just treated as an early regular payment.
- Pay off costlier debt first. If you also have credit card debt at a higher rate, the debt payoff planner will usually put that first.
- Keep an emergency fund. A car is hard to sell quickly if you need the cash back.
Frequently asked questions
How can I pay off my car loan faster?
Pay a little extra every month, round up your payment, or put a one-off amount like a tax refund toward the balance. The calculator shows the months and interest saved for each option.
Does paying off a car loan early hurt my credit?
Your score may change a little when a loan account closes. According to FICO, payment history and amounts owed are the biggest parts of a credit score, so paying on time and owing less matter most.
Is there a penalty for paying off a car loan early?
Some loans have one. Check your contract or ask your lender before you pay extra.