Car Refinance Calculator

Quick Answer

Last updated: 10 November 2026 ·How we calculate this: comparing the remaining cost of the old loan with the new loan

How This Car Refinance Calculator Works

Enter what you still owe on your car, your current rate and the months left, then the rate and term a new lender offers and any fees. The calculator works out both payments, the interest left on each loan and the total you would pay either way. The last row tells you whether refinancing saves money overall, and how many months of lower payments it takes to cover the fees.

How to Use the Car Refinance Calculator

1. Enter your current balance, rate and months left (from your statement).
2. Enter the new rate and term you are offered.
3. Add any fees the new lender or your state charges.
4. Press Calculate.
5. Compare the payments and the overall saving or cost.

Car Refinance Formulas

• Monthly payment: balance × r ÷ (1 − (1 + r)^−n), with r = rate ÷ 12 ÷ 100
• Total left on the current loan: current payment × months left
• Total on the new loan: new payment × new months
• Savings: total left now − total after refinancing
• Months to recover fees: fees ÷ monthly saving

Key Terms

• Refinance: replacing your loan with a new one, usually at a different rate or term.
• Balance: the amount you still owe, shown as the payoff amount on your statement.
• Term: the number of months to repay the loan.
• APR: the yearly cost of a loan including fees.
• Upside down: owing more on a car than it is worth.

Worked Example

You owe $25,000 at 11% with 54 months left. A credit union offers 7% for 60 months, with $300 of fees added to the loan.

• Current payment = $589.04; new payment = $500.97
• Interest left now = $6,808.01; interest on the new loan = $4,758.22
• Total left now = $31,808.01; total after refinancing = $30,058.22
• Refinancing saves about $1,749.79, even with six extra months.

Real-Life Examples

• Lower rate, same term: $20,000 from 9% to 6% over 48 months saves $1,344.01.
• Longer term: $15,000 from 8% with 36 months left to 7.5% over 60 months lowers the payment by $169.48 but costs $1,112.52 more overall.
• With fees: a $300 fee on the worked example is paid back in 3 months of lower payments.
• Small balance: refinancing $5,000 with 18 months left from 10% to 7% saves only $123.49 before fees.

Car Refinance vs Mortgage Refinance

• Car refinance: smaller loans, fewer fees and quick approval, but cars lose value, so lenders limit loan-to-value and age.
• Mortgage refinance: large loans with closing costs of thousands, so the break-even period matters more.
• Both: compare the total cost, not only the monthly payment.

Monthly Payment per $20,000

When Refinancing a Car Makes Sense

• Your credit score has gone up since you bought the car, so you qualify for a lower rate.
• Rates have fallen since you took out the loan.
• You took dealer financing with a high rate and can now shop around.
• You need a lower payment and accept a longer term, knowing it may cost more overall.

It may not help if the loan is nearly paid off, if the car is worth less than you owe, or if your current loan has a prepayment penalty. Check the APR, which includes fees, when comparing offers.

Common Mistakes to Avoid

• Looking only at the payment. A longer term can lower it while costing more overall.
• Forgetting fees. Lender and title fees reduce the saving.
• Using the original loan amount. Enter the current balance and the months left.
• Refinancing near the end. Most interest is paid early, so late refinances save little.
• Ignoring prepayment penalties. Check your current loan agreement.

Frequently Asked Questions

References & Sources