Car Loan Calculator
How to read the results
- Payment change is your current payment minus the new one.
- Total saved compares everything you'd still pay on your current loan with everything you'd pay on the new one, including fees. This is the number that tells you if refinancing is worth it.
- Break-even is the first month where you're ahead with the new loan, counting what you've paid plus what you still owe. If you might sell the car before then, refinancing loses money.
When refinancing makes sense
- Your credit has improved since you bought the car, so you qualify for a lower rate.
- Rates have dropped since you took out the loan.
- You took dealer financing without shopping around. A dealer-arranged rate can be higher than what you'd get by shopping around yourself.
The longer-loan trap
Stretching your loan lowers the payment even with no rate cut, so a lower payment alone doesn't mean you're saving money. If the new term is longer than what you have left, check the Total saved figure. It often turns negative because you pay interest for more months. The comparison table shows this for each term.
Costs to check before you refinance
- Fees: some lenders charge an origination fee, and your state charges to transfer the lien and title.
- Prepayment penalty: read your current loan contract. Many auto loans have none, but some do.
- Credit checks: prequalifying usually uses a soft check. A full application can add a hard inquiry, so apply to the lenders you're serious about within a short window.
Related calculators
- Auto loan calculator for a new purchase, with your state's tax rules.
- Car affordability calculator to see how much car your income supports.