In the second to last column, it tells you total interest paid. Scroll down to the bottom and you will see the total interest paid. Now scroll back up to where it states “add additional monthly payment” type a reasonable number into it. Scroll down, and see the total interest paid. Subtract this lower number from your original number and that will be your savings on interest. The calculator will also tell you your new payoff date. Example: A $15,000 car loan at a 7% interest rate would cost you $2821 in interest over a five year period. Add $50 a month to your payment, and you would reduce your car loan by 10 months and save $487 in interest. Option 1: Keep your car insurance coverage as is. It may not save you money but if your vehicle is damaged in a car accident your car insurance can help repair the damage. Option 2: Remove collision coverage. Collision coverage is the coverage you need when you damage your vehicle and it was your fault. It can also potentially help when someone damages your parked vehicle. Collision coverage is often the most expensive coverage. Take a look at your potential for an accident, how much your vehicle is worth, and how much the coverage costs. With all three of those pieces of information, you should be able to determine if the coverage is right for you. If you cannot decide, get some advice from your agent. Agents often do not tell you what to purchase but can offer guidance in the decision-making process. Option 3: Remove comprehensive coverage and collision coverage. Comprehensive coverage protects against fire, theft, vandalism, flying objects, deer, weather, and more. Removing comprehensive coverage would leave you with no physical damage coverage on your car insurance policy. It is easy to find yourself owing more than the vehicle is worth if you are not trying to speed up your pay off. Ever get into a major accident or decide you want to sell and you will have to pay a big lump sum to cover the difference. In most cases, yes. You’ll be saving the amount of your interest in the long-run, but if you can find an investment that has a good chance of a higher payout, like the stock market, it might make sense to park your money there instead of rushing to pay off a loan that comes with pretty good terms in the first place.
