Car Refinance Calculator

It works out the monthly payment and the total interest of your current loan and of the new offer, then compares them. You enter the balance you owe, your APR and months left, and the new rate, term and fees. The result is the new payment, the monthly difference, the interest and fees saved over the life of the loan, and the month the savings cover the fees.

It is when the new loan costs less in total after fees. That usually means a lower rate than you pay now, early in the loan when a larger share of each payment is interest, and small fees. On $20,000 at 9.5% with 48 months left, a refinance to 6.5% saves $1,201.86 after $150 in fees. A cut of only one point, to 8.5%, saves $305.84, and the fees take 16 months to earn back.

It depends on the rate drop, the balance and the months left. On $20,000 with 48 months left and $150 in fees, a new rate of 8.5% saves $305.84, 7.5% saves $756.47, 6.5% saves $1,201.86, 5.5% saves $1,641.99 and 4.5% saves $2,076.86. The second table under the result shows these steps for your own numbers.

It is the month in which what you have saved so far equals the fees. With $28.16 saved each month and $150 in fees, you break even in month 6. With $1,000 in fees the same refinance takes 36 months. The break-even month counts only the payments, not the balance left on each loan. If you plan to sell the car or pay the loan off early, compare the interest saved up to then with the fees instead: in this example a payoff after month 4 already saves about $45.50, while with a 60-month new loan the break-even month is 2 but a payoff after month 3 still loses about $3.59.

Applying for credit leads to a credit check, and the CFPB notes that several checks from lenders can affect your score. It advises keeping rate shopping within 14 to 45 days so the inquiries count as one. A new loan also replaces an older one. Compare offers in a short window, and check your credit reports for errors before you apply.

Yes, but a refinance pays the old loan off in full, which may trigger the penalty. Your contract and state law decide whether there is one, according to the CFPB, and some states prohibit prepayment penalties for certain loans. Read the contract, ask your lender for the payoff amount including any fee, and add the penalty to the fees in the calculator.

A longer term lowers the payment but usually costs more in total, because you pay interest for more months, as the CFPB notes. On the $20,000 example at 6.5% with $150 in fees, 60 months drops the payment to $391.32 and still saves $488.83, but 84 months drops it to $296.99 and costs $978.84 more than keeping your current loan.

Paying up front costs less, because borrowed fees earn interest. With $300 in fees on the $20,000 example, paying up front saves $1,051.86 and adding the fees to the loan saves $1,010.36. Choose "Added to the loan" if you do not want to spend cash now, and look at the total savings before you decide.

It is not worth it when the fees are large next to the savings, when the loan is nearly paid off, or when a longer term hides a higher total cost. A $3,000 balance at 9.5% with 10 months left has only $132.17 of interest to save. Refinancing to 6.5% saves $42.07 with no fees but loses $107.93 once $150 in fees are added.

Enter the payoff amount from your lender, which is what the new lender must pay to close the old loan. It is slightly higher than the principal on your last statement because it includes the interest since your last payment. If you roll in extras such as a warranty, add them to the balance as well.

Lenders and states charge different fees. Common ones are an application or origination fee and the cost of putting the new lender on the title and registration, and an old lender may charge a payoff or prepayment fee. Ask for the full list before you apply and enter the total under fees. The Truth in Lending disclosure of the new loan shows its finance charge and APR.

Look at your loan agreement, where the Truth in Lending disclosures list the APR, the number of payments and the monthly payment, or at your lender’s online account or latest statement. Months left is the number of payments you have not made yet. If you cannot find the rate, ask the lender.

It depends on your credit, the car, the loan amount and the term. In general, a lower credit score brings a higher rate, according to the CFPB, and offers differ between banks, credit unions and online lenders, so compare several. Enter each offer in the calculator and compare the total savings, not only the rate.

No. It compares loan payments, interest and the fees you enter. Insurance premiums, taxes and add-ons that you pay separately are not part of the loan. Add-ons that are financed in the loan, such as an extended warranty, are part of the balance you owe, so they are already in the payoff amount.