How this calculator works
Your current loan is amortized over the months remaining; the new loan over its term, with fees added to the balance. Net savings are the interest left on the current loan minus interest on the new loan and the fees.
Worked example
With the example values below: Monthly savings, $25.05 (net interest savings $1,202). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Current balance | $22,000 |
| Current APR | 9.5% |
| Months remaining | 48 mos |
| New APR | 6.5% |
| New term | 48 months |
| Refinance fees | $250 |
When refinancing a car loan makes sense
The calculator compares the interest left on your current loan with the interest and fees on the new one, so you can see the net savings, not just the payment change.
- Rates have dropped since you took the loan.
- Your credit score has improved enough to move into a better tier.
- You took dealer financing without comparing offers and the rate was high.
- You need a lower payment and accept a longer term and possibly more total interest.
When it doesn't
If you're near the end of the loan, most of the interest has already been paid, so there's little left to save. If you owe more than the car is worth, many lenders won't refinance, or will charge more. Older cars with high mileage may not qualify, and some lenders set a minimum balance, often around $5,000 to $7,500.
Check your current loan for a prepayment penalty, and include title transfer and any lender fees in the comparison.
Don't just stretch the term
A longer new term lowers the payment even at the same rate, but it means paying interest for longer. Moving 36 remaining months onto a new 60-month loan can raise total interest even with a lower rate. If the lower payment is the goal, that may be fine; if saving money is the goal, keep the new term at or below the time you have left.
How to refinance
Check your credit score and your car's value, then get quotes from banks, credit unions and online lenders, ideally within a two-week window so the inquiries count as one. You'll need your current loan payoff amount, VIN, mileage, proof of income and insurance. The new lender pays off the old loan directly. The auto loan calculator shows the payment on any new terms you're offered.
Frequently asked questions
How soon can I refinance a car loan?
Often as soon as the title transfer is complete, which can take a few weeks to a couple of months. Waiting six to twelve months of on-time payments can help your credit and the rate you're offered.
Does refinancing a car hurt your credit?
Slightly at first, from the hard inquiry and new account. Shopping several lenders within about 14 days limits the effect, and scores usually recover within a few months.
Can I refinance if I owe more than my car is worth?
It's harder. Many lenders cap loans at about 100% to 125% of the car's value. You may need to pay down the balance first or accept a higher rate.
How much can I save by refinancing my car?
It depends on the rate drop, balance and time left. Dropping from 11% to 7% on a $25,000 balance with 48 months left saves roughly $2,200 in interest at the same term.
Are there fees to refinance a car loan?
Sometimes: a title transfer fee charged by your state, possibly a lender origination fee, and any prepayment penalty on your current loan. Many lenders charge no origination fee.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.