Auto Loan Payoff Calculator

Auto Loan Payoff Formula:

\[ RB = PMT \times \frac{1 - (1 + r)^{-m}}{r} \]

Payoff Amount (RB):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Auto Loan Payoff Calculator?

The Auto Loan Payoff Calculator determines the remaining balance (payoff amount) on an auto loan based on your monthly payment, interest rate, and remaining payment periods.

2. How Does the Calculator Work?

The calculator uses the payoff formula:

\[ RB = PMT \times \frac{1 - (1 + r)^{-m}}{r} \]

Where:

\( RB \) — Remaining balance (payoff amount)
\( PMT \) — Monthly payment amount
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( m \) — Number of remaining payment periods

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

3. Importance of Payoff Calculation

Details: Knowing your payoff amount helps when refinancing, selling your vehicle, or planning early loan repayment.

4. Using the Calculator

Tips: Enter your current monthly payment, monthly interest rate (divide APR by 12), and number of payments remaining. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is my payoff amount different from my remaining principal?
A: The payoff includes any accrued interest and may include fees depending on your lender's policies.

Q2: How do I convert APR to monthly rate?
A: Divide your annual percentage rate by 12 (months) and convert to decimal (e.g., 6% APR = 0.06/12 = 0.005).

Q3: Does this account for early payment penalties?
A: No, check your loan agreement for any prepayment penalties that may apply.

Q4: Why would I need to know my payoff amount?
A: Useful when trading in your vehicle, refinancing, or paying off the loan early to save on interest.

Q5: How accurate is this calculator?
A: It provides a close estimate, but your lender's exact payoff amount may differ slightly due to their specific calculation methods.