See how paying extra saves you money and helps you own your car faster.
Get started by entering your loan information.
We calculate your loan payoff schedule using standard amortization.
Calculation Methodology
This section explains the math behind your loan schedule.
Monthly Payment Formula
Your base payment is calculated using the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]Where:
- M = Monthly Payment
- P = Loan Principal (amount borrowed)
- i = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Number of Payments (Loan Term in years × 12)
How Each Payment is Split
With every payment, money is divided between interest and principal:
- Interest = Current Loan Balance × Monthly Interest Rate
- Principal = Total Payment – Interest
- New Balance = Previous Balance – Principal
Impact of Extra Payments
Any extra payment is applied directly to your loan principal. This:
- Reduces your balance faster
- Lowers the total interest you pay
- Shortens the life of your loan
Note on Results: Results are estimates. Your lender’s policies may cause actual payments to vary.