Auto Loan Refinance Calculator
Enter your current loan and the new offer. In the default example refinancing saves $25.95 a month, pays back the fees in 12 months and saves $1,101.12 overall.
How the auto loan refinance calculator works
Refinancing replaces your car loan with a new one, ideally at a lower rate. This calculator compares the two loans payment by payment. It shows your monthly saving, how many months it takes for that saving to cover the refinance fees (the break-even point) and how much you save over the full life of the loans after fees.
Enter what you still owe, your current rate and months remaining, then the rate, term and upfront fees on the new offer. Keep the new term close to the months you have left if you want a fair comparison, because stretching a loan out lowers the payment but can raise total interest.
The formulas
B is the balance, i is the monthly rate and N is the number of payments.
Example: This is an illustration, not a quote. A balance of $22,000 at 8.9 percent with 54 months left costs $495.91 a month. A new 54-month loan at 6.4 percent costs $469.96, a saving of $25.95 a month. With $300 of fees the break-even point is 12 months. Remaining interest falls from $4,779.19 to $3,378.07, so the total saved after fees is $1,101.12.
Points to check before you refinance
- Look at the loan term. A longer term can show a lower payment but more total interest.
- Ask about prepayment penalties on the current loan and title or lien fees on the new one.
- Compare the APR, not only the rate, so that fees are included. Our APR calculator can help.
- If you plan to sell or trade in the car before the break-even point, refinancing may not pay off.
- Lenders look at your credit, the vehicle and the amount owed versus its value, so approval and rates vary.
The Consumer Financial Protection Bureau advises comparing interest rates and terms and notes that loan terms can be negotiated; see its auto loan tools. This calculator is not financial advice.
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Frequently asked questions
How do I calculate whether refinancing a car loan is worth it?
Divide the fees by the monthly saving to get the break-even months, then check that total interest also falls. The default example breaks even in 12 months and saves $1,101.12 after fees.
What is the break-even point?
The number of months it takes for monthly savings to cover the upfront fees. After that point you are ahead.
Does a longer term save money?
It lowers the monthly payment but usually raises total interest. Compare total cost, not only the payment.
When does refinancing not make sense?
When the rate drop is small, fees are high, you will sell the car soon or the new loan has a much longer term.
Do fees roll into the loan?
Some lenders allow it. This calculator assumes you pay fees upfront. Enter 0 if there are none.
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