How the early payoff calculator works
When early payoff actually wins
Extra payments earn your APR, guaranteed. Against a 7–12% car loan, that beats most safe investments — pay it off. Against a 2.9% promotional rate, investing the extra may out-earn the payoff; the math is personal, but now it is visible.
The equity angle
Cars depreciate fastest in years 1–3; extra principal is the antidote to negative equity — which matters at trade-in time, when underwater owners roll their old loss into the next loan and start the cycle again. Getting to positive equity early is worth more than the interest line suggests.
The prepayment-penalty check
Modern auto loans rarely carry prepayment penalties, but subprime contracts sometimes do — read the "prepayment" clause or ask the lender directly, in writing. Then confirm extras post as principal, not as "early payments," which changes nothing.