To figure out the best repayment strategy, you'll want to use a car payoff calculator. The most effective strategy will be tailored to your budget and goals.
Step One: Evaluate Your Situation
Before you get started, make sure you look up the details of your loan. These details should be up-to-date according to your latest payment. This ensures the most accurate breakdown for your payoff schedule, savings, and accelerated monthly payment.
Details you want to make note of:
- Number of months remaining in the duration of your loan
- Your overall loan term in months
- The total loan amount
- The annual interest rate for your auto loan
This information will be inputted into your auto loan early payoff calculator to help you determine how much extra money you should apply to your monthly payments.
Step Two: Evaluate Your Budget
Next, you will want to determine your budget.
Evaluate your monthly expenses, then subtract them from your current monthly income. Keep in mind you want to account your non-fixed expenses too, including a budget for entertainment and spending.
The money remaining is your total pool from which you can pull the additional monthly payoff amount.
Step Three: Crunch Some Numbers
At this point, you can begin using your auto loan early payoff calculator. You can use ours for free.
Plugin the details of your loan and then choose what kind of report, or breakdown, you would like to see. The options include monthly or annually.
Annually is a great option if you want to see what your overall saving are for the year. Monthly is better when you're evaluating a plan that suits your budget.
Play with the calculator a little by applying a couple of additional monthly car payment options you can afford.
Ultimately, you want to apply the highest amount of extra payment to your existing monthly obligation. This will make sure you pay off your loan quicker and save more on your total interest paid.
Once you complete the questionnaire, you will find a series of reports. These reports include a graph of your balance and interest as well as your current and accelerated payment schedule.
This will give you a better idea of how much you will save through the additional payment plan you've created.
For another early payoff strategy, check out our bi-weekly auto loan payments calculator.