Complete Guide
GAP Refund Calculator (Pro-Rata)
Use the simple pro-rata formula to see how much the dealer owes you.
4 min readUpdated January 2026
Key Takeaways
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refunds you are owed from early payoff
The Pro-Rata Formula
Most states use a simple pro-rata calculation:
(Months Remaining / Total Months) x Original Price = Refund
- Example:
- Price: $800
- Term: 72 months
- Payoff Month: 24 (48 months remaining)
Calculation: (48 / 72) = 0.666 $800 x 0.666 = $533.33 Refund
State Cancellation Fees
- Subtract any state-allowed cancellation fee from your total.
- Texas: Max $50
- California/Wisconsin: $0
- Most others: $25-$50
Frequently Asked Questions
What is the "Rule of 78s"?
An older, complex formula that pays out smaller refunds. Many states have banned it for consumer loans, requiring the simple Pro-Rata method instead.
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