1. What is an Auto Loan Amortization Table?

An auto loan amortization table shows the breakdown of each payment between principal and interest over the life of the loan. With extra payments, it demonstrates how additional payments can reduce both the loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( Interest_k \) — Interest portion of payment k
• \( Principal_k \) — Principal portion of payment k
• \( Balance_k \) — Remaining balance after payment k
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( PMT \) — Regular monthly payment
• \( extra \) — Additional payment amount

3. Importance of Extra Payments

Details: Extra payments directly reduce principal, which decreases both the total interest paid and the loan term. Even small extra payments can lead to significant savings over time.

4. Using the Calculator

Tips: Enter the loan amount, interest rate, loan term in years, and any additional monthly payment you plan to make. The calculator will show how each payment affects your loan balance.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with extra payments?
A: The savings depend on the loan amount, interest rate, and size of extra payments. Even $50 extra per month can save thousands in interest and shorten the loan term by months or years.

Q2: Should I make extra payments early or late in the loan?
A: Extra payments have the most impact when made early in the loan term, when interest charges are highest.

Q3: Are there prepayment penalties?
A: Most auto loans don't have prepayment penalties, but check your loan agreement to be sure.

Q4: How often can I make extra payments?
A: You can make extra payments as often as you like, either as lump sums or regular additional payments.

Q5: Does this calculator account for irregular extra payments?
A: This calculator assumes consistent extra payments each month. For irregular payments, you would need a more advanced calculator.