Auto Loan Refinance Calculator
This auto loan refinance calculator compares your current car payment to a refinance offer, showing both the monthly saving and the real total interest difference — since a lower rate on a longer term can sometimes cost more overall. Enter your current loan and the new offer to see both.
How much you still owe on your current auto loan.
The rate on your existing auto loan.
Months left on your current loan.
The rate on the refinance offer you're considering.
The term on the refinance offer — often similar to your remaining term.
Monthly payment saving
$31
Positive means the refinance costs less in interest overall; negative means extending the term costs more despite the lower rate.
How to use this auto loan refinance calculator
- 1Remaining balance and remaining term: from your current loan statement.
- 2Current rate: the APR you're paying now.
- 3New rate and new term: from the refinance offer you're considering — if the new term is longer than your remaining term, watch the total interest figure closely.
Understanding your results
Monthly payment saving is the immediate cash-flow benefit. Total interest saved is the more important number for your actual cost — it can be negative even with a lower rate, if the new loan's longer term adds enough extra months of interest to outweigh the rate cut.
The formula
Interest saved = Interest on current loan (remaining term) − Interest on new loan (new term)Both the current and refinanced loans are calculated using the same amortization formula on the same remaining balance — only the rate and term differ. Comparing full interest cost, not just the monthly payment, is what reveals whether a refinance is a genuine saving or just a lower payment stretched over more months.
A worked example
A $22,000 remaining balance at 9.5% with 48 months left, refinanced to 6.5% over the same 48-month term: the monthly payment drops from about $553 to about $522 — a $31/month saving — and total interest drops by roughly $1,487 over the loan, a genuine saving since the term stayed the same.
Notes for the UK, US and India
Refinancing to a longer term than your remaining balance can lower your monthly payment even more, but often erases some or all of the interest savings — always compare the total interest figure, not just the payment, before deciding a refinance is worth it.
Frequently asked questions
Is auto loan refinancing always worth it if the rate is lower?+
Not automatically — check whether the new term is longer than your remaining term. A lower rate stretched over more months can sometimes cost more in total interest than staying put, even though the monthly payment looks better.
Are there fees to refinance an auto loan?+
Sometimes — a small application or title transfer fee is common, though many auto refinance lenders don't charge origination fees the way mortgage refinances often do. Factor any fee into your interest-saved comparison.
Does my car need to be worth more than the loan to refinance?+
Many lenders prefer this (not being 'underwater'), though some will still refinance an upside-down loan, often at a less favorable rate — check with lenders directly if your loan balance exceeds your car's value.