Auto Refinance Calculator
The Auto Refinance Calculator compares your current auto loan payment and remaining interest against a refinanced loan at a new rate and term, including monthly savings and the break-even point on any fees.
What this means
Auto refinancing replaces your existing car loan with a new one at a different rate or term. A lower rate cuts both your monthly payment and total interest, but compare the full picture before switching.
How we calculate it
Formula
Monthly savings = old payment − new payment. Break-even months = fees ÷ monthly savings.Worked example
A $18,000 balance at 7% with 48 months left, refinanced to 4.5% for 48 months with $300 in fees:
- 1Old payment ≈ $431, new payment ≈ $411
- 2Monthly savings ≈ $20
- 3Break-even ≈ $300 / $20 = 15 months
Important assumptions
- Both loans amortize with fixed rates over the entered terms.
- Refinance fees are charged up front.
Frequently asked questions
When should I refinance my car?
When your credit has improved or rates have fallen enough to lower your payment by a meaningful amount, and when you'll stay in the car past the break-even point.
Is a longer term after refinancing a good idea?
Extending the term lowers the payment but adds interest and can leave you owing more than the car is worth. Match the new term to your original remaining term if possible.