Auto Refinance Calculator
Enter your current loan balance and rate alongside a new refinance rate and term to see how much refinancing your auto loan could save you each month.
How the Auto Refinance formula works
Comparing two amortized payments on the same balance:
Monthly savings = Current payment − New payment
Step-by-step calculation
- Calculate your current monthly payment using your remaining balance, current rate, and remaining term.
- Calculate a new monthly payment using the same balance at the new rate and term.
- Subtract the new payment from the current payment to find monthly savings.
Worked example
A $18,000 balance at 9% with 4 years remaining, refinanced to 6% over 4 years: monthly payment drops from about $448 to about $423, saving roughly $25/month, or about $1,200 over the remaining term.
Frequently asked questions
When does refinancing a car loan make sense?
It's most worthwhile when your credit has improved since the original loan, interest rates have dropped, or you want to change your loan term — but check for any prepayment penalties on your current loan and fees on the new one before deciding.
Does refinancing extend how long I'll be paying off the car?
It can, if you refinance into a longer term than your remaining time — that can lower the monthly payment but may increase total interest paid, so it's worth comparing total cost, not just the monthly figure.