How to use this refinance calculator
- Enter your current loan. Use the payoff balance, your current APR, and how many payments you have left.
- Enter the new offer. Use the APR a lender quoted you and the term you'd choose.
- Add fees. Include state title and registration fees and any lender fees. Choose whether you'd pay them up front or add them to the loan.
The big number is what you'd save (or lose) over the rest of the loan, counting every payment and fee. The monthly change alone can be misleading.
Lower payment vs. lower total cost
Refinancing can do two different things. Getting a lower rate at the same or shorter term almost always saves money. Choosing alonger term lowers your monthly payment, which can help a tight budget, but you'll usually pay more interest overall and stay in debt longer. Try setting the new term equal to your months remaining to see the pure effect of the rate.
Before you refinance
- Check your credit. The biggest savings come when your score has improved since you got the original loan.
- Get several quotes. Credit unions and online lenders often beat banks and dealers. Rate shopping within a short window counts as a single credit inquiry for most scoring models.
- Look for a prepayment penalty on your current loan; add it to the fees above if there is one.
Frequently asked questions
When does refinancing a car loan make sense?
Usually when you can get a meaningfully lower rate than you have now: for example, because your credit score has improved, rates have dropped, or you took dealer financing without shopping around. It helps most early in the loan, when more of each payment is interest.
Can refinancing cost me more even with a lower payment?
Yes. If you stretch the loan over more months, your payment can drop while the total interest goes up. This calculator shows both the monthly change and the total change so you can see the whole trade-off.
What fees come with refinancing a car?
Many lenders charge no origination fee, but you may pay a title transfer or re-registration fee to your state, and some loans have a lien or processing fee. Check whether your current loan has a prepayment penalty, too.
What is the break-even point?
It is how many months of lower payments it takes to earn back the fees you pay up front. If you plan to sell or pay off the car before then, refinancing may not be worth it.
Where do I find my payoff balance and remaining months?
Your lender's website or monthly statement shows your current payoff amount and the number of payments left. The payoff amount can be slightly higher than the principal balance because it includes interest accrued since your last payment.
Last reviewed November 8, 2026. Estimates only; your lender's figures may differ.