A better rate, same term.
Refinance to 6.25% for 48 months with $150 in cash fees. The new payment is $436.60, which saves $28.18 a month. Interest drops by $1,352.75, and after the fees the net savings are $1,202.75. You break even in month 6.
Auto Loan Refinance Calculator
Compare your current car loan with a refinance, including fees, and see whether it actually saves you money.
Results
Enter your numbers to see the results.
| Figure | Current loan | New loan |
|---|---|---|
| Monthly payment | ||
| Months left | ||
| Final payment | ||
| Interest left to pay | ||
| Total left to pay |
- Net savings
- Monthly savings
- Interest saved
- New loan amount
- Break-even month
- Change in months
| Month | Payment | Interest | Principal | Balance |
|---|
| Month | Payment | Interest | Principal | Balance |
|---|
Estimates only. The tool uses a standard monthly interest calculation. Many auto loans accrue simple interest daily, so your lender's payoff figures and final payment can differ by a few dollars. Lenders also set their own rules on loan size, vehicle age and mileage, and credit. Get a written quote before you decide.
Enter your payoff balance, your current rate and the months you have left, then the rate, term and fees of the refinance you're considering. The tool compares the two loans side by side and tells you what matters: whether your payment drops, whether you pay less interest overall, how much you save after fees, and the month you break even. A lower payment isn't always a better deal. If a longer term lowers the payment but adds interest, the tool says so.
How to use it
- Enter your current payoff balance, the amount you'd owe if you paid the loan off today. Your lender's website or statement has it.
- Enter your current APR and the months remaining.
- Optional: enter your current monthly payment. If you do, the tool uses it and works out how many months are left. If you leave it blank, the tool calculates it.
- Enter the new APR and the new term in months (12 to 96).
- Enter any refinance fees, such as lender fees, title transfer and re-registration, or a payoff penalty on the old loan.
- Say whether you'll pay the fees in cash or roll them into the new loan.
How it works
Each loan is run month by month. Interest each month is the balance times the APR divided by 12, rounded to the cent. The payment is the standard loan payment formula, and the last payment is whatever is needed to finish exactly at the end, like a real lender's final payment. A 0% loan is the balance divided by the months.
- Monthly savings = current payment − new payment. It can be negative.
- Interest saved = interest left on the current loan − interest on the new loan, fees not included.
- Net savings = everything you'd still pay on the current loan − everything you'd pay on the new one, including fees you pay in cash.
- Break-even month = the first month when your payment savings add up to the cash fees. If the refinance never pays for itself, the tool hides the break-even month and says "Doesn't pay off within the new loan term."
If you roll fees into the new loan, they're added to the balance and you pay interest on them. In that case there are no cash fees, so break-even is month 1 whenever the payment drops. The net savings number is the one to look at.
Worked examples
All use a $18,500 balance at 9.5% APR with 48 months left, which is a $464.78 payment and $3,809.34 of interest still to pay.
A better rate, longer term.
Refinance to 6.25% for 60 months. The payment falls to $359.81, a drop of $104.97 a month, and interest saved is $720.65, so you still come out ahead by $570.65. But you make 12 more payments.
The stretch trap.
Refinance to 8.5% for 72 months. The payment drops to $328.90, saving $135.88 a month. Interest left to pay climbs to $5,180.85, so the refinance costs $1,521.51 more overall, even though the payment looks smaller. The tool flags it. If cash flow is the problem, a lower payment may still be worth it, but know the price.
Fees rolled in.
A $25,000 balance at 11.99% with 54 months left, refinanced to 7.49% for 54 months with $400 in fees added to the loan. The new loan is $25,400.00. The payment falls from $601.29 to $555.54, interest saved is $2,870.77, and the net savings are $2,470.77.
A 0% offer.
A $12,000 balance at 7.9% with 36 months left, refinanced to 0% for 36 months. The payment is $333.33 for 35 months and $333.45 for the last, exactly $12,000.00. You save $1,517.39 in interest.
A worse rate.
$15,000 at 5.9% with 40 months left, refinanced to 7.4% for 40 months with $100 in fees. The payment goes up by $10.30 a month, and you lose $511.88 overall. The tool hides the break-even month and says "Doesn't pay off within the new loan term."
Break-even takes a while.
$9,800 at 14.5% with 30 months left, refinanced to 8.9% for 30 months with $325 in cash fees. You save $25.83 a month and net $450.01. At $325 ÷ $25.83, it takes just under 13 months to recover the fees, so break-even is month 13.
A higher payment, a shorter loan.
You pay $500 a month on the $18,500 loan, which leaves 44 months, and refinance to 6.25% for 36 months with $150 in cash fees. The new payment is $564.90, which is $64.90 more a month, but you finish 8 months sooner and save a net $1,491.03. Break-even is month 41, after the new loan has ended. Higher payment, shorter loan, less total cost.
When refinancing usually helps
- Your credit score has improved since you took the loan, or rates have dropped.
- You can keep the same term, or shorter, and still get a lower rate.
- The fees are small compared with the savings.
- You have a long time left on the loan, since most of the interest is paid early.
When it usually doesn't
- Only a few months remain, or the rate difference is small.
- The new loan stretches the term a lot.
- Fees or a prepayment penalty eat the savings.
- You owe more than the car is worth, which many lenders won't refinance.
FAQ
When should I refinance my car loan?
When you can get a clearly lower rate without lengthening the loan by much, and the savings after fees are real. Compare the net savings, not only the payment.
How do I calculate the break-even point?
Divide the cash fees by the monthly savings. $325 in fees and $25.83 saved a month is 12.58, so break-even is month 13. The tool does this month by month and counts partial months as the next full month. If the refinance costs you more overall, there's no break-even, and the tool says "Doesn't pay off within the new loan term."
Does refinancing hurt my credit?
Applying usually causes a small, temporary dip from the lender's credit check, and a new account lowers the average age of your accounts. Credit scores vary, so the effect depends on your file. Shopping for rates within a short window is generally treated as one inquiry by common scoring models, but confirm with each lender.
What fees can come with an auto refinance?
Common ones are lender or application fees, title transfer and registration fees, and a prepayment penalty on the old loan if it has one. Enter the total in the fees box. Ask for every fee in writing.
Should I roll fees into the loan?
You'll avoid paying cash up front, but you'll pay interest on the fees too, and the loan balance goes up. Compare both options in the tool by switching the fee setting.
Is a lower payment worth a longer loan?
Sometimes, if you need breathing room in your budget. The longer the loan, the more interest you pay in total, unless the rate cut is large. The "net savings" figure answers this directly.
Can I refinance with negative equity?
If you owe more than the car is worth, many lenders won't approve it, or they'll require you to pay the difference. Lenders also set limits on vehicle age and mileage, so ask about their rules before you apply.
Why does my lender's number differ from this tool?
Most auto loans use simple interest that accrues daily, and this tool uses a monthly rate. Expect small differences in the payoff amount and final payment.
What if my current payment is higher than the one shown?
Enter your actual payment. The tool uses it and works out the months left. If you pay extra each month, that's the number to enter.
Can I get cash out when I refinance?
Not in this version. The tool compares the same balance at a new rate and term.