Auto Loan Refinance Calculator

The auto loan refinance calculator is used to estimate the monthly payment and interest rate; refinancing your car loan can lower both. This usually works when your credit score improves when you are taking out your auto loan or signing with a dealership for an auto loan. You can calculate your savings and compare them with auto refinancing rates whenever you need them.

Calculate your potential auto refinance savings

Use this auto refinance calculator to compare your current loan with a refinance loan.

Your current loan info

$
Your current loan amount
$
Your current monthly payment
%
Your current interest rate
months
Remaining months left on your current loan

Refinance loan info

$
Your refinance amount
months
Your refinance loan term in months
%
Your refinance interest rate
$
Optional refinancing fees

Want to estimate your monthly payments before refinancing? Try our easy-to-use Auto Loan Calculator to get a quick breakdown or explore leasing costs with our Auto Lease Calculator.

Use the auto loan refinance calculator to find potential savings

Our auto loan refinance calculator helps you determine how much you save on monthly payments or interest rates.

Input details: Enter the details of your remaining balance, interest rate, the remaining long-term loan, and your monthly payment.

Compare rates: After checking which interest rate is best for you and adjusting the terms you have, compare this amount with other lenders who offer auto refinance, and see which works for you. 

Apply for preapproval: Check other lenders’ rates, if they are according to your needs, and preapprove them. After figuring this out, you will see whether refinancing will help you save money or not, instead of your current loan.

What is refinancing, and how does it work?

Refinancing is basically the replacement of your current loan with a newer one. You can improve the loan terms, such as reducing your interest rate, the length of the loan, and the monthly payment.

To qualify for auto loan refinancing, you must meet the specific requirements to refinance as mentioned below:

  • Solid Record of Payments
  • Excellent credit score
  • Vehicle mileage is below 100,000.
  • The vehicle is not older than 10 years
  • The current loan meets the requirements for the refinance amount.

If you refinance with a similar rate but choose a longer term, you might end up owing more than your car is worth. To avoid this, skip long repayment plans even if the lower monthly payment seems pretty good.

When should you refinance an auto loan?

Sometimes you wonder when you should refinance your current loan and opt new one. If you’re one of them, then we have got you and will mention the answer for you.

  1. You received dealer financing. Sometimes dealers add an extra amount to take as a commission. You get the best rate if your loan is financed by the lender referred through your dealer.
  2. Your credit score improved. If your credit score is better, by refinancing, you can save money. You can make a significant impact by adding just a few points to your credit score. 
  3. You want to lower your payment. You can lower your interest rate through refinancing. However, refinancing can reduce your monthly payment and increase the amount of interest you pay. 
  4. National interest rates are low. Auto loan rates are high when the federal funds rate is low. The auto loan rates are high because the Federal Reserve does not cut the rates, but it cut the rates three times in 2024. 
  5. You have equity in your car. If you have more equity, you have less than the price of your vehicle. You will get lower rates of interest on an auto loan.

How To Apply For An Auto Refinance Loan?

You can refinance your auto loan just like your original auto loan. For this, you have to follow these steps for refinancing a car loan.

  • Firstly, you have to decide if refinancing is best for you or not financially. Before the refinancing process, compare your savings with your current monthly cost.
  • Review your current loan rate and understand how much interest you will pay.
  • Check your credit score and your budget through the auto refinance calculator before applying. If you have a better credit score, then you will pay more.
  • Check the value of your car, and for this purpose, you can use different tools like Kelley Blue Book and Edmunds to find out how much your car is worth.
  • Find which loan is best for you and meets your needs. Estimate your savings and how much you pay monthly, and check if a prepayment penalty will cancel out your savings. 

Lastly, complete your paperwork and keep proof of insurance, income, and vehicle details with you. Use them whenever you need them for your loan.

Frequently Asked Questions

A refinance rate mainly depends on the loan terms and your credit score you have. A good refinance rate for a car is 5.29% or less.

Yes, refinancing a car is worth it if you have a good loan term and score lower interest rate. It is beneficial for someone but not for everyone, depending on their situation.

It depends on the lender, but your mileage should be 100,000 or 150,000 miles, and your car age should be not least 10 years old.

For new cars, the average loan interest rate is 6.48%, and for used ones is 12.01%.

You need a higher score to get a good interest rate, you need 600 score or higher. Refinancing becomes profitable for you if you get a better interest rate or monthly payment.