How to use the auto refinance calculator
- 1 Enter your current balance, rate and months left.
- 2 Enter the new rate you have been offered.
- 3 Enter the new loan term in months.
- 4 Add any refinance fees and read your savings.
Worked example
A $25,000 balance at 9.5% with 48 months left, refinanced to 6.5% for 48 months with $300 of fees. The payment falls from $628.08 to $592.87, saving $35.20 a month. Interest falls from $5,147.76 to $3,457.94, so the total saving after fees is $1,389.82, and the fees are earned back in 9 months.
Getting the best refinance
- Check your credit score before you apply.
- Compare offers from banks, credit unions and online lenders.
- Keep the term short to save interest.
- Check for prepayment penalties on your current loan.
See the original loan with the Car Loan Calculator, compare with leasing using the Car Lease Calculator, and check the Car Loan Interest Deduction Calculator.
Features
Monthly and total savings
A lower payment is not always a saving: both are shown.
Break-even month
When the payment savings cover the fees.
Term check
Warns when a longer loan costs more in total.
When to use it
Credit score improved
A better score can mean a much lower rate. See the original loan with the Car Loan Calculator.
Rates have fallen
Compare the offer with your current loan.
Lowering monthly costs
Free up money for debts with the Debt Snowball Calculator.
Buying a new car instead
Check what you can afford with the Car Affordability Calculator.
Related Home and Auto tasks
Frequently asked questions
When does refinancing a car loan make sense?
When you can get a lower rate than you have now, for example because your credit score has improved, rates have fallen, or you took dealer financing at a high rate. The saving is largest early in the loan.
How much can I save by refinancing?
In the example, moving a $25,000 balance from 9.5% to 6.5% over the same 48 months saves $35 a month and about $1,390 in total after $300 of fees.
Does refinancing hurt my credit?
A hard inquiry can lower your score slightly for a short time. Rate shopping within about 14 to 45 days usually counts as one inquiry.
Should I extend my loan term?
A longer term lowers the payment but usually raises total interest, and you may owe more than the car is worth for longer. Keep the term the same or shorter if you can.
What fees come with an auto refinance?
Many lenders charge none, but some charge an origination fee, and your state may charge a title transfer or lien fee, usually under $100. Check for a prepayment penalty on your current loan.
Can I refinance if I owe more than the car is worth?
It is harder. Many lenders limit the loan to 100% to 125% of the car's value. Paying down the balance first can help.
How old can the car be?
Lenders often require the car to be under 10 years old with fewer than 100,000 to 150,000 miles. Requirements vary.
How soon can I refinance after buying?
Often right away, though some lenders want 6 to 12 months of payments and the title transferred to your name first.
Is the car loan interest deduction affected?
Interest on a refinanced loan can still qualify for the 2025-2028 car loan interest deduction, up to the original loan balance, if the car met the rules when bought.
What is the break-even point?
The number of months of lower payments needed to cover the refinance fees. If you plan to sell the car before then, refinancing may not pay.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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