1. What is Auto Loan Payoff Amount?

The auto loan payoff amount (RB) is the total amount needed to pay off your car loan completely at any given time. It includes the remaining principal plus any accrued interest.

2. How Does the Calculator Work?

The calculator uses the auto loan payoff formula:

Where:

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

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 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, monthly interest rate (annual rate ÷ 12), and remaining number of payments. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert APR to monthly rate?
A: Divide your annual percentage rate (APR) by 12. For example, 6% APR = 0.06/12 = 0.005 monthly rate.

Q2: Why is my payoff amount different from my remaining principal?
A: The payoff includes accrued daily interest and may include any prepayment penalties specified in your loan agreement.

Q3: Does this account for extra payments I've made?
A: No, this calculator assumes you've made only regular payments. For loans with extra payments, contact your lender for exact payoff.

Q4: How accurate is this calculator?
A: It provides a close estimate, but your lender's calculation may differ slightly due to their specific accounting methods.

Q5: When should I request a payoff quote?
A: Always get an official payoff quote from your lender when preparing to pay off your loan, as rates may change daily.