# Car Refinance Calculator

URL: https://speedycalculator.com/calculators/finance/car-refinance/
Last updated: 2026-10-25

> The car refinance calculator compares your current auto loan with a new one – remaining balance, rate and term against the new rate, term and fees – to show the new payment, monthly savings and total interest saved, with optional cash out.

## Inputs

- Current loan balance
- Current interest rate (%)
- Months remaining
- New interest rate (%)
- New loan term (months)
- Refinance fees
- Cash out

## Results

- Current monthly payment
- Interest left on the current loan
- New loan amount
- New monthly payment
- Interest on the new loan
- Monthly savings
- Total savings

## Formula

```
Current payment and remaining interest from balance, rate and months left
New loan = balance + fees (if financed) + cash out
New payment = pmt(new rate ÷ 12, new term, new loan)
Savings = (current payment × months left) − (new payment × new term) − fees paid upfront
```

## Explanation

Refinancing a car loan makes sense when rates have dropped or your credit score has improved. Stretching the term lowers the payment but can raise total interest – and the car keeps losing value.

### How to use the Car Refinance Calculator

- **Current loan balance**
- **Current interest rate**
- **Months remaining**
- **New interest rate**
- **New loan term**
- **Refinance fees**
- **Cash out**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the current balance, rate and months left, then the new rate, term, fees and any cash out.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterCurrent loan balanceAmount in your currencyCurrent interest rateIn %Months remainingA numberNew interest rateIn %New loan termIn monthsRefinance feesAmount in your currencyCash outAmount in your currency

### What each result means

- **Current monthly payment** = pmt([Current interest rate]÷1200, [Months remaining], [Current loan balance])
- **Interest left on the current loan** = [Current monthly payment]×[Months remaining] - [Current loan balance]
- **New loan amount** = [Current loan balance] + [Refinance fees] + [Cash out]
- **New monthly payment** = pmt([New interest rate]÷1200, [New loan term], [New loan amount])
- **Interest on the new loan** = [New monthly payment]×[New loan term] - [New loan amount]
- **Monthly savings** = [Current monthly payment] - [New monthly payment]
- **Total savings** = [Current monthly payment]×[Months remaining] - [New monthly payment]×[New loan term] + [Cash out]

### Example values

How the main result changes when **Current loan balance** changes and everything else stays at the example values above:

Current loan balanceTotal savings9,000392.8213,500701.3118,0001,009.822,5001,318.2927,0001,626.7836,0002,243.75

## Worked example

Inputs — Current loan balance: $18,000; Current interest rate: 10 %; Months remaining: 42; New interest rate: 6.5 %; New loan term: 42 months; Refinance fees: $200; Cash out: $0.

Results — Current monthly payment = $509.70; Interest left on the current loan = $3,407.52; New loan amount = $18,200.00; New monthly payment = $485.66; Interest on the new loan = $2,197.72; Monthly savings = $24.04; **Total savings = $1,009.80**.

## FAQ

**When should I refinance my car?**
When you can get a meaningfully lower rate, often after your credit improves.

**Does refinancing hurt my credit?**
A hard inquiry may lower your score slightly for a short time.

**Can I refinance an underwater car loan?**
It's harder; some lenders allow LTVs up to 125%.

**What formula does the Car Refinance Calculator use?**
Current payment and remaining interest from balance, rate and months left.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)