Auto Loan Refinance Calculator
Calculate how much you can save by refinancing your car loan at a lower interest rate or shorter term.
Auto loan refinancing replaces your existing car loan with a new one, ideally at a lower interest rate or better terms. It can save you hundreds or even thousands of dollars over the life of the loan.
How refinancing saves money:
Monthly Savings = Current Payment - New Payment
Total Interest Savings = Total Interest (Old) - Total Interest (New)
Monthly payment formula:
Payment = Principal x [r(1+r)^n] / [(1+r)^n - 1]
Where r = monthly interest rate, n = number of months.
When refinancing makes sense:
- Your credit score has improved significantly since the original loan.
- Interest rates have dropped since you took out the loan.
- You want to shorten the loan term to pay it off faster.
- You want to lower monthly payments by extending the term (costs more in total interest).
When to avoid refinancing:
- Your car is too old (most lenders require vehicles under 7-10 years old).
- You are underwater (owe more than the car is worth).
- Refinancing fees exceed the savings.
- You have less than 12-18 months remaining on your current loan.
Typical refinancing costs:
- Application fee: $0-$50
- Title transfer fee: $5-$75
- State re-registration: $5-$75
- Total typical cost: $10-$200
Many lenders now offer no-fee auto refinancing. Always compare the total cost of both loans, not just the monthly payment.