Auto Refinance Calculator
A lower payment and a real saving are two different questions, and they often disagree. Stretching the loan back out drops the payment while raising the total interest. This answers both, separately.
You would save, overall
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- Payment now
- $0
- New payment
- $0
- Monthly difference
- $0
- Interest left on your loan
- $0
- Interest on the new one
- $0
Interest, either way
Both bars are interest over the rest of the loan. A lower monthly payment does not appear here on purpose, because it is not a saving.
Move it and watch
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at {v} for what you still owe
And what you can change
Why your own figure may differ
Side by side
The payment row is the one everyone looks at. The interest row is the one that decides whether you are better off.
| Your loan now | The offer |
|---|
Interest left on your loan = your payment times the months left, minus the balance. Interest on the new one is the same sum on the new terms, plus any fees. A smaller monthly payment spread over more months can easily add up to more interest.
The same rate over different lengths
One rate, several terms. Watch the payment fall and the interest climb at the same time.
| New length | Payment | Total interest | Against staying put |
|---|
Refinancing a car loan: real examples
Three offers that look similar and are not. Click any card to load it.
- A genuine win
From 11% to 6%, same time left
Credit improved since buying.
Lower payment and less interest overall. When the term stays the same, a rate cut is a straight win.
Load this scenario in the calculator → - The stretched-out trap
11% to 8%, but stretched to 72 months
A real rate cut, and a longer loan.
The payment falls $179 a month - and you pay $732 more in interest. A smaller payment is not the same as saving money.
Load this scenario in the calculator → - Barely worth it
Twelve months left
A good rate cut, but near the end.
The saving is tiny. Late in a loan almost everything you pay is principal, so a better rate has little left to work on.
Load this scenario in the calculator →
Common questions about refinancing a car loan
Does a lower payment mean I am saving money?
Not necessarily, and this is the trap. Stretching the loan back out to a longer term lowers the payment while raising the total interest. You can refinance to a better rate and still pay more overall. This tool answers both questions separately, because they often disagree.
When is refinancing a car genuinely worth it?
When your credit has improved since you bought, when rates have fallen, or when you were sold a poor rate at the dealership. The clearest sign is a real rate drop while keeping the same time left or less. That combination saves money on both counts.
Will refinancing hurt my credit score?
A little and briefly. Applying creates a hard search, and a new account slightly lowers the average age of your accounts. If you apply to several lenders within a short window, the searches are usually treated as one. The effect is small next to a meaningful rate cut.
Can I refinance if I owe more than the car is worth?
It is harder, and many lenders will refuse. Some will lend if the gap is small or you can pay the difference. The tool flags when you are in that position, because being upside down changes what is realistic.
What about fees?
Car refinancing usually has modest costs - a title transfer and registration fee. Check for an early repayment penalty on your existing loan, which is rarer but does exist. Put any costs in the box so the answer accounts for them.
Should I refinance a nearly paid-off loan?
Usually not worth it. Late in a loan almost all of your payment goes to principal rather than interest, so a better rate has very little left to work on. The savings tend to be small against the hassle and fees.