Car Loan Payoff Calculator

Car loans are one of the most common forms of debt in America, with the average auto loan balance exceeding $22,000. This calculator helps you understand your monthly payments, see how much interest you'll pay over the life of your loan, and explore strategies to pay off your car faster.

Whether you're considering a new car purchase, evaluating a refinance, or looking to pay off your current auto loan early, understanding the numbers is crucial. Even a small reduction in interest rate or an extra payment each month can save you thousands of dollars.

If you're underwater on your car loan or struggling with high monthly payments and you receive structured settlement payments, selling those future payments for a lump sum could help you pay off your auto loan entirely — eliminating the monthly payment and stopping interest from accumulating.

Car loans are amortized, meaning each monthly payment covers both principal (the amount you borrowed) and interest (the lender's fee). In the early months, most of your payment goes toward interest. As you pay down the principal, more of each payment goes toward the loan balance.

The amortization schedule shows exactly how each payment is split. Our calculator generates a complete schedule so you can see your loan paydown progress month by month. This visibility helps you understand where your money goes and motivates you to make extra payments.

Interest rates on car loans vary widely based on your credit score, the age of the vehicle, and current market conditions. New car loans typically have lower rates (5-8%) than used car loans (7-12%), and borrowers with excellent credit qualify for the best rates.

Making bi-weekly payments instead of monthly payments results in 26 half-payments per year — equivalent to 13 full monthly payments instead of 12. This extra payment each year can shorten a 5-year loan by 4-6 months and save hundreds in interest.

Rounding up your payment is another easy strategy. If your payment is $387, pay $400 or $450 instead. The extra goes directly to principal, reducing your balance faster and cutting total interest. Our calculator shows exactly how much you'll save.

Making one extra payment per year, either as a lump sum or divided across 12 months, significantly accelerates payoff. On a $25,000 loan at 7% for 60 months, one extra annual payment saves over $800 in interest and pays off the loan 5 months early.

Refinancing to a lower rate can reduce both monthly payments and total interest. However, extending the term to get lower payments often costs more in the long run. Only refinance if you can get a lower rate without extending your payoff date.

Enter your loan amount, interest rate (APR), and loan term to see your monthly payment and total interest cost. The calculator instantly shows your complete amortization schedule, so you can see exactly when you'll be debt-free.

Use the 'extra payment' feature to see how additional principal payments affect your payoff timeline. Even $50 extra per month can save hundreds in interest and pay off your loan months earlier. The calculator shows the exact savings.

Compare different scenarios side by side. What if you refinanced to a lower rate? What if you made one extra payment per year? The calculator helps you make informed decisions by showing the real impact of each option.

Being underwater (or 'upside down') means you owe more than your car is worth. This happens when you make a small down payment, have a long loan term, or the car depreciates faster than expected. It's a common problem — about 1 in 3 trade-ins involve negative equity.

If you're underwater, trading in for a new car typically rolls the negative equity into your new loan, making the problem worse. You end up owing even more on a depreciating asset. Avoid this cycle by paying down your current loan before trading in.

Making extra payments is the fastest way to get above water. Every dollar of extra principal reduces your loan balance and closes the gap between what you owe and what the car is worth. Focus on paying down the loan rather than refinancing or extending terms.

If you're significantly underwater and receive structured settlement payments, a lump sum from selling some payments could pay off the loan entirely. This eliminates the underwater situation and frees up your monthly car payment for other financial goals.

Refinancing works best when interest rates have dropped since you got your original loan, or when your credit score has improved significantly. A 2-3% rate reduction on a $20,000 balance can save $1,000+ in interest over the remaining loan term.

Be cautious about extending your loan term when refinancing. A lower monthly payment feels good, but paying for 6 years instead of 4 years means more interest overall. Only extend terms if you genuinely can't afford the current payment.

Most lenders require the car to be less than 10 years old and have under 100,000 miles for refinancing. If your car doesn't qualify, focus on making extra payments to pay it off faster rather than seeking a refinance.

Focusing only on monthly payment is a common trap. Dealers can lower your payment by extending the loan term, but you'll pay thousands more in interest. A $400/month payment for 72 months costs far more than $450/month for 48 months.

Skipping payments or paying late damages your credit and adds late fees. Most lenders charge $25-50 per late payment, and late payments stay on your credit report for 7 years. Set up autopay to avoid missed payments.

Rolling negative equity into a new loan creates a debt spiral. If you're underwater, pay down your current loan or save for a larger down payment before buying another car. Breaking this cycle is essential for long-term financial health.

If you receive structured settlement payments and are struggling with car loan payments or underwater on your auto loan, you have an option that refinancing can't offer: accessing money you already own. Unlike refinancing that restructures debt, selling some of your future payments provides cash to pay off your car loan entirely — no more monthly payments, no more interest.

With Smarter Payouts, you can see your instant offer range (minimum to maximum payout) in under 60 seconds — no phone call required, no personal information needed upfront. This privacy-first approach lets you explore whether selling makes sense for your situation without any pressure or commitment.

Important: All structured settlement transfers require court approval, which protects you by ensuring the transaction is fair and in your best interest. We encourage you to seek independent professional advice before making any decision. Selling may not be right for everyone, but for those struggling with auto loan payments, it can provide immediate relief and free up monthly cash flow.

Your car loan doesn't have to be a financial burden. This calculator helps you understand your options, see exactly how extra payments save money, and plan your path to owning your car outright.

Whether you choose to make bi-weekly payments, round up your monthly amount, or make one extra payment per year, having a clear strategy accelerates your payoff and saves money on interest.

If traditional payoff strategies aren't enough and you receive structured settlement payments, exploring a lump-sum payout could help you eliminate your car loan entirely. Use this calculator to understand your numbers and make the best decision for your situation.