How to calculate auto loan payoff time
Each payment covers that month's interest first — the balance times the monthly rate — and whatever is left reduces the principal. Repeating this until the balance hits zero gives the number of months to pay off, and adding up every month's interest gives the total interest paid.
Example: a $20,000 balance at 7% APR with a $500 monthly payment pays off in a little under 46 months, with roughly $2,900 in total interest.
Paying it off faster
Any extra you add to the payment goes straight to principal, since the interest portion only depends on the balance. Even a small increase can cut months and interest noticeably — try raising the payment above to see the effect.
Estimates only, for general information — not financial advice. Last updated
Frequently asked questions
How is loan payoff time calculated?
Each payment first covers a month's interest on the remaining balance, and the rest reduces the principal. The calculator works out how many payments it takes for the balance to reach zero.
What if I pay extra each month?
Enter your actual payment, including any extra you plan to add. A higher payment pays off the balance faster and cuts the total interest.
Does this include fees or taxes?
No, it only covers principal and interest on the balance you enter. Add any fees separately if you want them included.
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