Auto Loan Refinance Calculator
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Auto refinance calculator: compare your current car loan with a new rate and term on total interest, not just the payment, with fees and break-even.
Educational estimate only. Not a lending decision. Your numbers stay in this browser.
Results
How to read this: the verdict describes how much room your numbers leave, not a decision or an offer. Change any input to see how much the result moves.
Keep comparing
Check the refinance journey
The Refinance journey compares payment change, break-even timing, remaining balance, and term reset from a single set of numbers.
Open the Refinance journeyLoan guides
These guides explain repayment schedules, APR, personal loan payment factors, and auto loan total cost.
- Loan repayment schedule explained
- APR vs interest rate
- Personal loan payment factors
- Auto loan total cost
For all guide topics, open Guides. For source and estimate boundaries, read Calculation Methodology and Sources and Assumptions.
When this calculator fits
Use this page when a refinance offer looks good on the monthly payment and you want to know what it does to the total. Should you refinance your car? A lower payment bought with a longer term usually costs more overall, so this car refinance calculator compares the two loans on total interest and shows the month the fees are recovered. Should I refinance my car is answered with a number rather than an opinion: the total interest saved or added over the remaining term, after fees. Use it as a car refinance estimator: it compares your current car payment with the refinanced payment and shows whether refinancing the vehicle loan actually saves money once fees are counted.
What this car refinance calculator does, and when to reach for it
Refinancing a car loan means taking a new loan, usually from a different lender, to pay off the one you have. It helps when the new rate is lower than the old one, which tends to happen when rates have fallen since you bought the car, when your credit score has improved, or when the dealer arranged a high rate at the time of sale.
The catch is that the monthly payment is the wrong number to judge it by. A new loan that runs longer than the months you have left can cut the payment and still cost more in total, even at a lower rate. This calculator shows the payment, the total interest and the net position side by side, counts the fees and any prepayment penalty, and says plainly when a lower payment comes at a higher total cost.
Reach for it when you have a refinance offer in hand, when you want to know what rate would make refinancing worth it, or when you are weighing a lower payment against paying off the car sooner.
Where to go next
To price a new car loan from scratch, use the auto loan calculator; to see what payment fits your budget, the car affordability calculator. To compare two offers against each other, the loan comparison calculator lines them up.
Assumptions and formula
payment = B × r(1 + r)n ÷ [ (1 + r)n − 1 ] net saving = interest saved − fees − prepayment penalty
- B
- the balance, plus any costs added to the new loan
- r
- the annual rate divided by 12
- n
- months: those left on the current loan, or the new loan’s full term
The three things that decide it
The rate gap. Every percentage point off the rate saves interest on every remaining month. On a $25,000 balance with four years left, 9% down to 6% saves about $1,680 in interest; 9% down to 8% saves about $567.
The term. Keeping the new term at the months you have left, or shorter, locks the saving in. Stretching it lowers the payment but adds months of interest, and past a point the extra months cost more than the lower rate saves.
The costs. Title transfer, registration and lender fees, and any prepayment penalty on the old loan, come off the saving. Paid at signing they set the break-even month; added to the new loan they also earn interest.
Being able to refinance at all
A lender will look at your credit, your income and the car. If the loan is larger than the car is worth (underwater, or upside down), many lenders will not refinance it, or only up to a set share of the car’s value. Enter the car’s current value and the lender’s limit and the page checks the new loan against both. Many lenders also set limits on the car’s age and mileage; those vary by lender, so check them with the lender.
What this page assumes
The calculator builds the remaining schedule on your current loan and the full schedule on the replacement. Upfront costs and any prepayment penalty are counted as cash at signing, and financed costs are added to the new balance. It compares the payments, the total interest and the net position at your comparison horizon, and names the case where the payment falls but total interest rises.
A break-even month is reported as lasting only if the saving still holds at the horizon. When you enter the car’s value, the new loan is checked against it: the loan-to-value ratio, whether the loan is underwater, and whether it exceeds a lender cap you enter. A refinance above that cap is reported as not eligible rather than as a saving.
Worked example
A $20,000 balance at 7% with 24 months left costs $895.45 a month, with $1,490.84 of interest still to pay. Refinanced at 6% over 72 months, the payment falls to $331.46 but interest rises to $3,864.96: $2,374.12 more, despite the lower rate. The same $20,000 moved from 9% to 5% over the same 48 months saves $37.11 a month and $1,781.52 in interest.
A $25,000 balance at 9% with 48 months left, refinanced with $200 of fees
| New loan | Payment | Total interest | Interest saved | Net after fees |
|---|---|---|---|---|
| Keep the current loan | $622.13 | $4,862.05 | — | — |
| 8% over 48 months | $610.32 | $4,295.51 | $566.54 | $366.54 |
| 6% over 48 months | $587.13 | $3,182.03 | $1,680.02 | $1,480.02 |
| 6% over 60 months | $483.32 | $3,999.20 | $862.85 | $662.85 |
| 6% over 36 months | $760.55 | $2,379.74 | $2,482.31 | $2,282.31 |
The same 6% rate gives very different results depending on the term. Over the 48 months you have left it saves about $1,480 after fees. Stretched to 60 months, the payment falls by $139 a month, but a year of extra interest eats more than half the saving. Shortened to 36 months, the payment rises and the saving is largest. In each case the $200 of fees is recovered by about the fourth month.
Where car refinancing goes wrong
- Judging by the payment. A longer term lowers the payment almost regardless of the rate. Compare total interest, and the net figure after fees, before deciding.
- Restarting the clock. Refinancing 42 remaining months into a new 60-month loan adds 18 months of payments. That is the most common way a refinance costs money while appearing to save it.
- Forgetting the costs. Fees and any prepayment penalty on the current loan come straight off the saving; on a small balance or a small rate gap they can wipe it out.
- Owing more than the car is worth. Cars lose value fast. An underwater loan is harder to refinance, and stretching it keeps you underwater for longer.
What this calculator leaves out: the lender’s credit decision and the rate you would actually be offered, taxes and fees that vary by state, add-on products such as gap insurance or extended warranties, and the car’s future value.
Frequently asked questions
Does refinancing a car loan actually save money?
Sometimes, and the monthly payment alone will not tell you. Refinancing at a lower rate into the same remaining term genuinely saves interest. Refinancing into a longer term lowers the payment while raising total interest, which is the more common outcome and the one most calculators do not show. This page reports interest still to pay on the current loan next to projected interest on the replacement, says so explicitly when the payment falls but the total rises, counts title and lien fees plus any prepayment penalty, works out the month refinancing turns net-positive, and checks the new balance against what the vehicle is worth, since a loan larger than the car is a refinance many lenders decline. A refinance car loan calculator that only shows the payment cannot answer that; this one shows the total. Should I refinance my car is answered with a number rather than an opinion: the total interest saved or added over the remaining term, after fees.
Will refinancing always save me money?
No, and that is why total interest is shown next to the payment. A lower monthly payment bought by stretching the term usually means more interest overall, and this calculator says so when it happens. It also counts the costs of refinancing, works out the month refinancing turns net-positive, and checks the new loan against what the vehicle is worth.
How much can I save by refinancing my car?
It depends on the rate gap, the months left and the fees. As a guide, on a $25,000 balance with four years left, cutting the rate from 9% to 6% on the same term saves about $1,680 in interest, or about $1,480 after $200 of fees. Enter your own loan and offer for your figure.
When is it worth refinancing a car loan?
When the new rate is clearly lower, the new term is no longer than the months you have left, and the saving after fees is recovered well before you expect to sell the car. The page gives the break-even month and says whether the saving still holds at the point you expect to sell.
Does refinancing a car lower the monthly payment?
Usually, but a lower payment is not the same as a saving. A longer term lowers the payment even at the same rate, and can raise the total interest. The page shows both, and flags a lower payment that costs more overall.
Can I refinance if I owe more than the car is worth?
Sometimes, but many lenders limit the loan to a share of the car’s value. Enter the car’s value and the lender’s limit, and the page shows the loan-to-value ratio and whether the new loan would be over the limit.