1. What is Auto Loan Payoff Amount?

The auto loan payoff amount represents the total sum needed to completely pay off your car loan at any given point in time. It includes the remaining principal plus any accrued interest.

2. How Does the Calculator Work?

The calculator uses the payoff amount formula:

Where:

• \( RB \) — Remaining balance/payoff amount ($)
• \( PMT \) — Monthly payment amount ($)
• \( r \) — Monthly interest rate (decimal)
• \( m \) — Number of remaining payments

Explanation: The equation calculates the present value of the remaining loan payments at the current interest rate.

3. Importance of Payoff Calculation

Details: Knowing your payoff amount is essential when considering early loan repayment, refinancing, or selling/trading in your vehicle.

4. Using the Calculator

Tips: Enter your regular monthly payment amount, the monthly interest rate (annual rate ÷ 12), and the number of payments remaining. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from my loan balance?
A: The payoff amount may include additional fees or interest that aren't reflected in your principal balance.

Q2: Why does my lender's payoff amount differ?
A: Lenders may include per-diem interest for partial months or prepayment penalties not accounted for here.

Q3: When is this calculation most useful?
A: When planning to pay off your loan early or comparing refinance offers.

Q4: Does this account for extra payments made?
A: No, this assumes you've made all scheduled payments without any additional principal reductions.

Q5: How can I get my exact payoff amount?
A: Contact your lender directly for the most accurate payoff quote, especially if you're within a month of paying off.