how do I calculate how I would save if I paid my car loan balance in full?

Question

Is there a way to do it in Excel?For example, if my balance is 9,000 and my APR is 6.950, if I wanted to pay it off how much interest would I save?

Answer 1

9000 * .06950 will give you 1 year.

Answer 2

Since you pay most all of a car loan in the front part of the finance time. you don't save a lot if you are down toward the end of the loan. The finance companies do this so they can get "their" money back and re-loan it while you are still paying on the loan. The sooner you pay it off the more you save.

But for your own information and quickness.....CALL the finance and ask for the PAYOFF. They will give it to you, without questions. Subtract that from the total of the payments left and you will see how much you would save by paying it off at that time. Good luck. Pops

Answer 3

It can be done in excel.

Its a little long to explain but better yet try here

http://calculators.interest.com/content/calculators/new/amortize.asp

put your current payment in the correct fields then put what you want to pay extra + your payment and subtract the two from each other and see your savings.

Answer 4

Run an amortization program. It will tell you how many payments and what they are (not both, just either one). Most of them will tell you the total. I wrote one myself--if you send me the numbers I will tell you.