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Auto Refinance Calculator

LoanAffordabilityAuto Refinance

How much could you save monthly with auto refinance? Use our auto refinance calculator and find out what you are looking at monthly.

Your estimated monthly loan payment is


Monthly savings


Difference in interest


*This auto refinance calculator is provided for illustrative and general estimation purposes only. The rates displayed are for general estimation and can vary depending on individual requirements.

How to use the Auto Refinance Calculator?

To use the auto refinance calculator, you should input the following data to get the most accurate results.

  1. What amount do you have left to pay: The entire outstanding balance on your current loan. It is not the original amount borrowed.
  2. Current monthly Payment: This is the monthly payment on your existing auto loan. It consists of principal, interest, and fees.
  3. Current interest rate: This is the current percentage interest rate on your auto loan. If your lender offers an annual percentage rate (APR), that figure includes the interest rate as well as any fees or other expenditures you may incur. To get a more realistic estimate, use the APR rather than the interest rate.
  4. New interest rate: This is the new interest rate on your refinance loan that you plan to pay. If the lender offers an APR, utilize that percentage because it is more explicit.
  5. Remaining Loan terms: The number of monthly payments left for you to complete your current loan term.
  6. New Loan term: This is the length of time you want your new loan to be. It might be anything between two and seven years.

Frequently Asked Questions

What is Auto Refinancing?

Auto refinancing is the process of replacing your existing car loan with a new loan that has better terms and conditions. The new loan helps pay off the remaining amount on your previous car loan, after which you start paying monthly payments on the new loan
– ideally with a lower interest rate.

Why should you consider auto refinance?

The advantage of car refinancing is that you can get a new loan with a lower APR (Annual Percentage Rate) or a lower monthly payment, which can help save money in the long run. Auto refinancing is also useful for people who want to add/remove a co-signer to their loan or make changes to their current loan so as to rationalize their expenses.

When should you consider Auto Refinancing?

Refinance is a viable solution to consider in any of the following cases:
  • • If your car dealer financed your loan: You may have been given a poor deal if you financed your auto loan through dealership lending. Consider refinancing using an online car refinance calculator to restructure it better.
  • • If your credit score has improved: Even a 30-point difference in credit score can significantly impact your auto car loan rate. Refinancing helps you get better rates if you have consistently improved your credit score
  • • If you need a lower monthly payment: Refinancing for a longer loan term can reduce your monthly car loan payments. This can be beneficial if you have a tight budget and need more freedom in your finances. An auto loan refinance calculator will help you zero in on a comfortable amount.
  • • If you want to reduce your interest rate: Buyers concerned about the effect of high interest rates on car loans can consider refinancing to spread your risk out over a longer time horizon.
  • • If you want to add/remove a co-signer to your loan: Buyers may want to add or remove a co-signer (sibling, parent, or spouse) to their car loan for personal reasons. Refinancing allows you an option to shed the previous contract for a new one.

Does applying for an auto refinance loan hurt your credit?

Refinancing an auto loan may temporarily lower your credit score, but it is unlikely to harm your credit in the long run.

What are the pros and cons of refinancing your auto loan?

The advantages of refinancing a car loan include lowering your monthly car payment, lowering your interest rate, and shortening your loan duration. Fees, additional interest if you extend the term or cash out equity, and the possibility of paying more than the car's value are all disadvantages of auto loan refinancing.