Auto Loan Refinance Calculator
Refinancing a car loan can cut your payment or your interest — but fees and a longer term can erase the benefit. This calculator compares your current loan against a new rate and term and shows the break-even point.
How this calculator works
The calculator computes the payment on your remaining balance at both your current APR and the new APR, each over the term you choose. It then compares total interest: what remains on the old loan versus what the new loan would cost. Monthly savings minus fees gives the break-even — the number of months you must keep the new loan before the refinance pays for itself.
Frequently asked questions
When does refinancing a car loan make sense?
Usually when rates have dropped since you financed, or your credit score has improved enough to qualify for a meaningfully lower APR. If the new payment is lower and you keep the term similar, you save interest; if you extend the term to cut the payment, you may pay more interest overall.
What does the break-even point mean?
Break-even is your refinance fees divided by the monthly savings — the point where the savings have repaid the cost of refinancing. If you expect to keep the car past that point, the refi wins; if you might sell it sooner, the fees make it a loss.
Does refinancing hurt my credit score?
A new auto loan triggers a hard inquiry and adds a new account, which can cost a few points temporarily. The old loan closing reduces your average account age slightly. Within a few months the effect usually fades, and on-time payments on the new loan build history.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.