Car Refinance Calculator
Calculate potential savings by refinancing your auto loan. Compare your current loan with a new loan to see monthly payment differences and total interest saved.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Car Refinance Calculator
This tool compares your current auto loan with a potential refinance option. Follow these steps:
- Enter your current loan details:
- Current Loan Balance ($): The remaining principal amount you owe.
- Current Interest Rate (%): Your existing annual percentage rate (e.g., 7.5 for 7.5%).
- Current Remaining Term (months): How many months are left on your loan (e.g., 48).
- Enter the proposed new loan details:
- New Interest Rate (%): The new annual rate you expect (e.g., 5.0).
- New Loan Term (months): The new loan duration (e.g., 60).
- Refinancing Fees ($): Any upfront costs (e.g., 500). Default is $0.
- Click "Calculate" to see results.
What you get:
- Current Monthly Payment vs. New Monthly Payment.
- Monthly Savings (difference in payments).
- Total Interest Saved over the life of the new loan (after fees).
- A breakdown of total interest for both loans and the fees.
Important: All rates are annual percentages. Terms must be in whole months. Use positive numbers only. The calculator uses the standard loan amortization formula. Savings are estimates and assume no prepayment penalties.
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Frequently Asked Questions
The monthly payment is calculated using the standard amortization formula: M = P * r * (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate divided by 12), and n is the number of months.
Total interest saved is the difference between the total interest you would pay on your current loan (over its remaining term) and the total interest you would pay on the new loan (over its term), adjusted for any refinancing fees.
Yes, include any fees you will pay to refinance (e.g., origination fees, application fees). The calculator adds the fees to the new loan principal, which affects the new monthly payment and total interest.
