1. What is the Bankrate Auto Loan Payoff Amount?

The Bankrate Auto Loan Payoff Amount calculation determines how much you would need to pay today to completely pay off your auto loan. This amount is typically less than your remaining principal balance because it accounts for the interest you won't have to pay by paying early.

2. How Does the Calculator Work?

The calculator uses the Bankrate payoff formula:

Where:

• \( RB \) — Payoff amount
• \( PMT \) — Monthly payment amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( m \) — Number of remaining payments

Explanation: The formula calculates the present value of all remaining payments, accounting for the time value of money.

3. Importance of Payoff Calculation

Details: Knowing your payoff amount helps when refinancing, selling your vehicle, or considering early loan repayment. It provides the exact amount needed to satisfy the loan immediately.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why is payoff amount different from remaining balance?
A: The payoff amount accounts for interest savings from early payment, while remaining balance doesn't factor in these savings.

Q2: How accurate is this calculator?
A: This provides a close estimate, but your lender may use slightly different methods or include fees.

Q3: Should I get a payoff quote from my lender?
A: For exact amounts, always request an official payoff quote from your lender, as it may include fees or adjustments.

Q4: Does paying off early always save money?
A: Yes, but check for prepayment penalties. The savings depend on your interest rate and how early you pay.

Q5: How does extra payments affect payoff amount?
A: Extra payments reduce principal faster, decreasing both remaining term and total interest paid.