Car Refinance Calculator

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Title transfer, lender fees, etc.
Finance

See if refinancing your car loan saves you money. Enter your remaining balance, current interest rate, the new rate you've been offered, how many months are left, and any refinance fees, and this calculator shows your new monthly payment and total savings (or warns you if the fees outweigh the benefit).

Formula

Savings = (Current Payment − New Payment) × Months − Refinance Fees
  • Each monthly payment is calculated with the standard amortization formula using the respective APR.
  • Monthly savings = the difference between your old and new payment.
  • Net total savings = monthly savings × remaining months − upfront refinance fees.
  • If net savings is negative, the fees and hassle outweigh the interest rate benefit over the remaining loan term.
  • Shortening the loan term (fewer months) may raise the payment but save on interest; lengthening lowers the payment but increases total interest paid.

$18,000 balance, 8% → 5%, 36 months, $500 fees

Inputs
  • Remaining Loan Balance: 18000 $
  • Current APR (%): 8 %
  • Refinance APR (%): 5 %
  • Months Remaining: 36
  • Refinance Fees: 500 $

Your current payment at 8% is about $564/month. At the new 5% rate, your payment drops to roughly $539/month, saving $25/month. Over 36 months that's $900 gross, minus $500 in fees = $400 net savings.

Frequently asked questions

Is refinancing my car loan worth it?
It depends on the rate drop and how many months are left. If your net savings (after fees) is positive and meaningful, refinancing is worth it. This calculator tells you exactly.
What fees are typical when refinancing a car?
Title transfer fees, lender processing fees, and sometimes early-payoff penalties on your old loan. Total fees typically range from $0 to $1,000; check with your new lender.
Can I change the loan term when I refinance?
Yes. Shortening the term raises your monthly payment but cuts total interest; extending the term lowers your payment but raises total interest. Try both in the calculator.
When should I not refinance?
If you're close to paying off the loan (few months left), if the rate drop is tiny, or if the fees exceed your total savings, skip refinancing and just finish the loan.
Does refinancing affect my credit score?
A hard credit inquiry may lower your score slightly (a few points) for a few months, but paying on time after refinancing helps rebuild it. The impact is usually small and temporary.