🚗 Car Refinance Calculator
Calculate auto loan refinancing savings
Any fees associated with refinancing
How to Use This Calculator
Enter Current Loan Details
Input your current loan balance, APR, and remaining months on your current auto loan.
Enter New Loan Terms
Enter the new APR and loan term (in years) for the refinanced loan. Lower rates and/or longer terms can reduce monthly payments.
Enter Refinance Fee
Enter any fees associated with refinancing (if applicable). Some lenders charge fees for refinancing auto loans.
Review Savings
See your monthly payment savings and total savings from refinancing. Compare to determine if refinancing makes financial sense.
Formula
Monthly Payment = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Savings = (Current Payment × Remaining Months) - (New Payment × New Term Months)
Example Calculation:
If current balance $20,000, current rate 8%, 36 months remaining, new rate 5%, new term 3 years:
• Current payment: ~$626/month
• New payment: ~$599/month
• Monthly savings: ~$27/month
• Total savings: ~$972 (over 36 months)
About Car Refinance Calculator
A car refinance calculator helps you determine if refinancing your auto loan makes financial sense. Refinancing an auto loan involves taking out a new loan to pay off your existing car loan, usually to get a lower interest rate or better terms. This calculator compares your current loan payments to the new loan payments, showing you potential savings from refinancing.
When to Use This Calculator
- Refinancing Evaluation: Evaluate if refinancing your car loan saves money
- Rate Comparison: Compare current loan vs. new loan rates
- Payment Planning: See new monthly payment amount
- Savings Analysis: Understand total savings from refinancing
When Refinancing Makes Sense
- Lower Interest Rate: Can get a significantly lower APR
- Improved Credit: Credit score improved since original loan
- Lower Monthly Payment: Need to reduce monthly expenses
- Market Conditions: Interest rates have dropped
Why Use Our Calculator?
- ✅ Savings Calculation: See exact savings from refinancing
- ✅ Payment Comparison: Compare current vs. new payments
- ✅ Decision Support: Make informed refinancing decisions
- ✅ Fee Consideration: Accounts for refinancing fees
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
When should I refinance my car loan?
Refinance when you can get a lower interest rate (typically at least 1-2% lower), your credit has improved, or you need lower monthly payments. Also consider if you'll save enough to justify any refinancing fees and the time/effort involved.
What are the costs of refinancing a car loan?
Refinancing costs may include: application fees, origination fees, title transfer fees, and prepayment penalties (if applicable). Some lenders offer no-fee refinancing. Always ask about all fees before refinancing.
Will refinancing extend my loan term?
It depends on the new loan term you choose. You can refinance into a shorter, equal, or longer term. A longer term reduces monthly payments but increases total interest. Consider your financial goals when choosing the new term.
Can I refinance if I'm underwater on my loan?
Being underwater (owing more than the car is worth) can make refinancing difficult, as lenders typically require the loan amount to be less than the car's value. Some lenders may still refinance, but you may need to make a down payment to cover the difference.