Car Loan Refinance Calculator

What is Car Loan Refinance Calculator?

A Car Loan Refinance Calculator helps you evaluate replacing your current auto loan with a new one—typically to lower the interest rate, reduce the monthly payment, shorten the term, or remove/add a co‑signer. By comparing your existing payment and projected payoff against a proposed refinance, you can estimate total interest savings, break‑even time on fees, and how the term change affects your budget. The calculator uses standard amortization math to compute payments, remaining balance, and costs under different scenarios.

About the Car Loan Refinance Calculator

Enter your original loan amount, APR, term, and how many payments you have already made. The tool computes your remaining balance $B_k$. Then enter the proposed refinance details (APR, new term, and fees); you can choose whether fees are paid upfront or financed into the new principal. The calculator outputs the new payment, total interest for each path, cumulative savings, and a simple break‑even month. For transparency, every step—rate conversion, balance formula, payment computation, and savings arithmetic—appears as responsive formulas that display cleanly on any device. You can also model shortening the term to keep payment similar while reducing lifetime interest.

How to Use this Car Loan Refinance Calculator

Enter your original loan details and the number of payments already made to compute the current balance $B_k$.
Provide proposed refinance APR, term (months), and fees; choose whether fees are paid upfront or financed.
Click calculate to see $\text{PMT}_{\text{new}}$, interest totals, monthly savings, and break‑even months.
Compare scenarios: lower rate, shorter term, or rolling fees versus paying them upfront.
Use results for budgeting discussions with lenders; numbers are illustrative and depend on actual lender terms.

Examples

Example 1: Lower rate, same term

Old: $PV=25{,}000$, APR 7%, $n=60$ → $\text{PMT}_{\text{old}}\approx$$497. New: APR 5%, $n=60$, no fees.

Example 2: Break‑even with upfront fee

Fee $F_{\text{upfront}}=\$600$; monthly savings $\approx\$26$.

Example 3: Shorter term trade‑off

Refinance balance $B_k=18{,}000$ at 5% for $n=36$: payment rises versus a 60‑month option, but

FAQs

How does refinancing save money?

By lowering rate, shortening term, or both—reducing total interest compared with staying in the current loan.

Does extending the term always help?

It lowers monthly payment but can increase total interest; compare lifetime cost, not just the payment.

Will refinancing hurt my credit?

Rate shopping creates hard inquiries and a new account; effects are usually small and often temporary.

Can I refinance if I’m upside‑down?

Possibly, but lenders may require cash to reduce LTV or GAP coverage; terms vary by lender.

What fees should I expect?

Application, title, lien, and possibly origination fees; model these as upfront or financed to see break‑even.

Is there a prepayment penalty on my old loan?

Some loans include penalties; add them to the payoff to get an accurate $B_k$ for modeling.

Should I keep the same term?

Keeping term constant isolates rate savings; shortening term increases payment but slashes total interest.

What is the difference between rate and APR?

APR includes certain fees and reflects the time value of payments; the rate is just the periodic interest.

How do I estimate break‑even months?

Divide upfront fees by monthly savings; for financed fees, compare total interest across scenarios instead.

Can I refinance more than once?

Yes, if savings outweigh costs; frequent refinancing can add fees and extend payoff.

Do I need excellent credit?

Better credit generally gets better rates, but some lenders specialize in mid‑tier scores—shop offers.

Are my numbers guaranteed?

No—this tool provides estimates. Actual offers depend on your credit, LTV, vehicle, state laws, and lender terms.