Find out if refinancing your car loan is worth it. Enter what you owe, your current rate and months left, then the new rate, term and fees to see your new payment, monthly and total savings, interest saved and the month the fees pay for themselves.
Last updated:
Current car loan
$
%
months
$
Leave blank to calculate it from balance, rate and months.
New loan offer
%
months
$
Lender, title transfer and registration fees.
Pay fees
Enter your values to see the result.
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How to use the Auto Loan Refinance Calculator
Enter your current loan: payoff balance, APR and payments left (and your payment, if you know it).
Enter the new offer: rate, term and any fees.
Choose whether fees are paid up front or added to the new loan.
Read the monthly and total savings and the break-even month.
Check the term table to see how a shorter or longer loan changes the payment and total cost.
How the refinance comparison works
Both loans use the standard payment formula P = L × r ÷ (1 − (1 + r)−n), with r = APR ÷ 12 and n = months.
Cost of keeping your loan = current payment × payments left (the last payment is trimmed to the exact payoff).
Cost of refinancing = new payment × new term + fees paid up front. Rolled-in fees are part of the new loan and earn interest.
Total savings = cost of keeping − cost of refinancing.
Break-even month = first month in which what you have paid plus what you still owe is lower with the refinance (fees included) than with your current loan, meaning the interest saved has covered the fees.
Example: $22,000 left at 9.5% with 48 payments is $552.71 a month. Refinancing to 6.5% for 48 months is $521.73, saving $30.98 a month and about $1,487 in interest ($1,187 after the fees); The $300 in up-front fees is covered by interest savings by month 6 (the quick rule, fees ÷ monthly savings, gives a more conservative 10 months).
Monthly payment per $10,000 borrowed
APR
36 months
48 months
60 months
72 months
4%
$295.24
$225.79
$184.17
$156.45
5%
$299.71
$230.29
$188.71
$161.05
6%
$304.22
$234.85
$193.33
$165.73
7%
$308.77
$239.46
$198.01
$170.49
8%
$313.36
$244.13
$202.76
$175.33
10%
$322.67
$253.63
$212.47
$185.26
12%
$332.14
$263.34
$222.44
$195.50
15%
$346.65
$278.31
$237.90
$211.45
Tips for a better refinance
Check your credit first. The biggest rate improvements usually come after a score jump.
Keep the term short. Match or shorten the months left so you don't pay interest longer.
Watch for negative equity. Lenders may decline if you owe much more than the car is worth.
Compare at least three offers from credit unions, banks and online lenders.
Usually when you can get a meaningfully lower rate than you have now, for example because your credit score improved or rates fell, and you have enough of the loan left for the interest savings to outweigh any fees. It makes less sense near the end of a loan, since most of the interest has already been paid.
How is the break-even month calculated?
It is the first month in which the payments made so far plus the balance still owed (plus any up-front fees) are lower with the new loan than they would be with your current loan. In other words, the interest you have saved has paid back the fees. The quick rule of fees divided by monthly savings gives a later, more conservative month.
Can a lower payment cost me more?
Yes. Stretching the loan over more months lowers the payment, but you pay interest for longer, so the total can be higher even at a lower rate. The calculator shows total savings after fees; if that number is negative, the refinance costs more overall.
What fees come with an auto refinance?
Many lenders charge no origination fee, but you may pay a title transfer or lien recording fee and state registration charges, often under a few hundred dollars. Check your current loan for a prepayment penalty, which is uncommon but possible.
What balance should I use?
Use the payoff amount from your current lender, which includes interest accrued since your last payment. It is usually a little higher than the balance shown on your statement.
Will refinancing hurt my credit?
Applying causes a hard inquiry, which can lower your score slightly for a short time. Rate shopping within a short window, typically 14 to 45 days depending on the scoring model, is usually counted as one inquiry.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.