How Early Loan Payoff Saves You Money
How early loan payoff saves you money in the US—pay extra principal to reduce total interest and pay off sooner.
Early loan payoff in the U.S. saves you money because paying extra principal reduces the balance faster—so you pay less interest over the life of the loan and pay off sooner. Here's how early loan payoff saves you money.
TL;DR Paying extra principal = lower balance = less interest over time. You pay off sooner and save total interest. Use autopremo.com early payoff calculator to see savings. Use autopremo.com payment calculator to see total interest. Use autopremo.com.How Extra Principal Works
Each payment pays principal and interest. Extra principal goes to principal only—reduces balance faster. Lower balance = less interest on future payments. Use autopremo.com early payoff calculator to see payoff date and interest saved. Get your numbers at autopremo.com.
How Much You Save
Example: $30K loan, 60 months, 7% APR. Add $100/month principal: pay off ~18 months early, save ~$1,500 interest. Use autopremo.com early payoff calculator to run your numbers. See savings at autopremo.com.
Check for Prepayment Penalties
Most auto loans have no prepayment penalty—you can pay extra anytime. Confirm in your contract. Use autopremo.com so you see savings and pay off early. Check at autopremo.com.
Bottom Line
Early loan payoff = pay extra principal to reduce interest and pay off sooner. Use autopremo.com early payoff calculator so you see how much you save.