Is it worth paying off my car loan early?

Usually yes, especially if your rate is above 7-8%. Calculate the interest saved vs any fees. Also consider if you have higher-rate debts to pay first.

Can I make extra payments on any car loan?

Most car loans allow extra payments, but some have restrictions or fees. Check your loan contract or ask your lender about extra repayment conditions.

Should I pay off my car or save for a house deposit?

If your car loan rate is higher than what you'd earn on savings, pay off the car first. However, if you're close to a home purchase, building the deposit might be more strategic.

Car Loan Early Payout Calculator

Calculator

Calculate savings and costs of paying off your car loan early

Free to useNo data storedAI insightsUpdated: February 2026

Thinking of paying off your car loan early? See how much interest you could save with extra payments or a lump sum, and whether any exit fees make it worthwhile.

Enter Your Details

Real-World Examples

Extra $100/month

Maria has $18,000 at 9% with 48 months left, paying $448/month. She adds $100/month extra.

Inputs Used:

balance:18,000rate:9months:48extra:100

She pays off 11 months early and saves $780 in interest. The extra payments more than pay for themselves.

$5,000 Lump Sum

James owes $25,000 at 8% with 60 months left. He gets a $5,000 bonus.

Inputs Used:

balance:25,000rate:8months:60lumpSum:5,000

Lump sum cuts 12 months off the loan and saves $1,230 in interest. Great use of the bonus!

Frequently Asked Questions

Glossary

Principal

The original amount borrowed, excluding interest. Extra payments reduce this directly.

Early Exit Fee

A penalty some lenders charge for paying off before the agreed term.

Payout Figure

The total amount needed to pay off your loan in full today, including any accrued interest.

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Refinance Calculator

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How to Use

1Enter your current loan balance
2Add your interest rate and monthly payment
3Input remaining months on your loan
4Try different extra payment amounts or lump sums
5Check for any early exit fees

Key Information

Extra payments go directly to reducing your principal
Small extra amounts can significantly reduce your loan term
Some loans have early exit fees - check your contract
The earlier you make extra payments, the more you save

Pro Tips

Round up your payment to the nearest $50 or $100 for painless extra payments
Put tax refunds or bonuses toward your car loan
Check if your loan allows unlimited extra payments without fees
Consider fortnightly payments instead of monthly (equivalent to 13 payments/year)

Avoid These Mistakes

Not checking for early repayment penalties first
Paying down a low-rate car loan while having high-rate credit card debt
Using emergency savings to pay off the loan
Not considering whether the money would grow faster invested

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026