Car Refinance Calculator
Calculate potential savings from refinancing your auto loan with better terms or lower interest rates
Current Loan Details
Outstanding balance on your current loan
Annual percentage rate of current loan
Time remaining on current loan
Calculated from loan details
New Loan Details
Annual percentage rate for new loan
Length of new loan term
Percentage of loan amount charged as fee
Application fees, title transfer, etc.
Positive = cash out, Negative = cash in (additional payment)
Refinancing Comparison
| Current Loan | New Loan | Difference | |
|---|---|---|---|
| Loan Amount | $0 | $0 | $0 |
| Monthly Payment | $0.00 | $0.00 | +$0.00 |
| Interest Rate | 0.00% | 0.00% | +0.00% |
| Loan Term | 0 months | 0 months | 0 months |
| Total Interest | $0.00 | $0.00 | +$0.00 |
| Total Payments | $0.00 | $0.00 | +$0.00 |
Refinancing Analysis
Example Calculation
Car Refinancing Example
Current Loan: $25,000 balance at 8.5% for 4 years remaining
New Loan: $25,000 at 4.5% for 3 years
Current Monthly Payment: $620.25
New Monthly Payment: $745.65
Savings Analysis
Monthly Payment: +$125.40 (higher due to shorter term)
Total Interest: $4,772 vs $1,843 = $2,929 savings
Total Payments: $29,772 vs $26,843 = $2,929 savings
Result: Pay off loan 1 year earlier with $2,929 less interest
When to Refinance
Interest Rates Dropped
Market rates are lower than your current rate
Improved Credit Score
Better credit qualifies for lower rates
Need Lower Payments
Extend term to reduce monthly burden
Pay Off Faster
Shorter term to save on total interest
Refinancing Tips
Shop around with multiple lenders for best rates
Check your credit score before applying
Consider all fees and closing costs
Calculate break-even point for cost recovery
Refinance can happen at any time during loan
Understanding Car Loan Refinancing
What is Car Refinancing?
Car refinancing involves replacing your current auto loan with a new loan, typically with better terms such as a lower interest rate, different loan length, or lower monthly payments. The new lender pays off your existing loan and you start making payments to the new lender.
Benefits of Refinancing
- •Lower monthly payments
- •Reduced total interest paid
- •Shorter or longer loan terms
- •Cash out equity for other needs
Refinancing Process
Check Credit: Review your credit score and report
Shop Rates: Compare offers from multiple lenders
Calculate Savings: Use this calculator to compare options
Apply: Submit application with required documents
Close: New lender pays off old loan
Required Documents
- ✓Driver's license
- ✓Vehicle identification number (VIN)
- ✓Current loan details and payoff amount
- ✓Proof of income (pay stubs)
- ✓Social Security number
Considerations
- •Vehicle age and mileage restrictions
- •Loan-to-value ratio requirements
- •Prepayment penalties on current loan
- •Title transfer and registration fees
- •Gap insurance considerations