A little extra each month pays off a car sooner and cuts interest. See how much.
An accelerated auto payoff calculator shows how adding an extra amount to each car payment shortens the loan and cuts total interest.
Extra payments go straight to principal, so you owe interest on a smaller balance every month afterward. On a car loan, even a modest extra amount can shave months off the term and save a meaningful chunk of interest, and it builds equity faster, helping you get above water sooner.
Confirm your lender applies the extra to principal rather than to the next payment, and check for any prepayment penalty (rare on auto loans, but worth verifying). Starting the extra payments early in the loan saves the most, since that's when the balance, and the interest, is largest.
Yes, extra payments reduce principal, so you owe less interest each month afterward, shortening the loan and cutting total interest.
Yes, make sure extra payments go to principal, not to the next month's payment, and check for any prepayment penalty.
Early in the loan, when the balance and the interest portion are largest. The sooner you start, the more you save.
See the exact formula and a worked example on our methodology page.