When looking at your loan, the payoff is the total amount due to completely pay off your loan. It is typically less than the total you’d pay if you added up the payments you have left, as it doesn’t include any additional interest that would potentially accumulate during the rest of your loan term.
Similarly, if you’re trading in your car, the dealership would look at the payoff amount for your current loan. If the trade-in value of your car covers it, the dealership would pay off your loan.