Auto Refinance Calculator
The short answer: a refinance is worth it when the interest you stop paying beats the fees and the payment games. Enter your current loan and the offer you're considering — the tool shows both payments, both total-interest figures, and the month the refinance breaks even. If a "lower payment" is secretly a longer loan costing more, this page will say so out loud.
See actual refinance offers
Run your real numbers against real offers — myAutoloan and LendingTree refinance programs (via CJ) are the planned partners for this slot. Only apply when the break-even above says it's worth it.
How this is calculated
Both loans are priced with the standard amortization formula on the same balance: your current payment from your current APR and months left, the new payment from the new APR and term. Interest remaining = payment × months − balance, computed for both. The monthly difference is current minus new; break-even is fees ÷ monthly difference, rounded up — it only exists if the payment actually drops. Net savings = current interest − new interest − fees. Worked check: $18,000 at 11% with 48 months left ($465/mo) refinanced to 6.5% over 48 months ($427/mo) breaks even on $300 of fees in about 8 months and nets roughly $1,540 — the figures this calculator shows.
What it assumes: the balance carries over exactly, the new loan starts now, and you keep it to term. If the new term is longer than your remaining term, watch the interest row — the verdict note will flag it. For the opposite strategy, see what plain extra payments do in the payoff calculator.
Frequently asked questions
What is the break-even point on a refinance?
The month where your accumulated monthly savings repay the cost of refinancing: fees ÷ monthly payment savings. If you keep the car and loan past that month, you're ahead; if you sell or pay off before it, the refinance cost you money. This calculator shows it directly.
Can a lower payment still be a bad refinance?
Yes — that's the classic trap. Stretching a 36-month remainder into a fresh 60-month loan cuts the payment while interest keeps accruing for two extra years, often increasing the total. This calculator shows total interest on both loans side by side precisely so that trick can't hide.
When does refinancing a car usually make sense?
When your credit has improved since you bought, when market rates have fallen, or when you took dealer financing under pressure at a high APR. The math works when the new rate is meaningfully lower and the new term doesn't stretch much beyond what's left on the current loan.
Does refinancing hurt my credit?
Applications typically involve a hard inquiry, which can dip a score slightly and briefly. Rate-shopping multiple lenders within a short window (commonly 14 days) is generally treated as a single inquiry by scoring models. The interest saved at a genuinely lower rate usually dwarfs the temporary dip.