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
| Field | What to enter |
|---|---|
| Current loan balance | Amount in your currency |
| Current interest rate | In % |
| Months remaining | A number |
| New interest rate | In % |
| New loan term | In months |
| Refinance fees | Amount in your currency |
| Cash out | Amount 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 balance | Total savings |
|---|---|
| 9,000 | 392.82 |
| 13,500 | 701.31 |
| 18,000 | 1,009.8 |
| 22,500 | 1,318.29 |
| 27,000 | 1,626.78 |
| 36,000 | 2,243.75 |
Formula
Current payment and remaining interest from balance, rate and months leftNew loan = balance + fees (if financed) + cash outNew payment = pmt(new rate ÷ 12, new term, new loan)Savings = (current payment × months left) − (new payment × new term) − fees paid upfrontWorked 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.
Frequently asked questions
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.