I have about 13k in a savings account with 1% APY. Last year this account earned over $100 in interest. I have a car loan with a balance of about $4200 on it, with 1.9% APR. I pay $288/mo on the loan, and an additional $12 to the principal every month (for an even $300).
I should have the loan paid off in a little over a year, but I was wondering if I could actually save money by just paying the loan off outright, and put the payments into my savings account for the next year. I already put $500/mo into the savings account.
My usual thought process for a low/zero interest loan like this is that its better to have the emergency cash on hand. But I feel comfortable enough that I can take the one-year hit to my savings. But do I even save any money this way? Is there some formula I can plug into a spreadsheet to figure out when I could have or should have paid off my car loan?