Current Auto Loan Details

$
$

New Refinance Rate and Term

%
mo
Keeping the term short saves more interest, while extending it lowers monthly payments.

Refinance Costs

$
Include lender, title, application, or other costs charged for the new loan.
Net Lifetime Difference After Fees
$1,464
modeled extra lifetime cost after fees
New Monthly Payment $570
Monthly Difference $20 more /mo
Refinance Fees $500
Fee Break-Even Not reached
New Total Interest $2,364
Current Interest Remaining $1,400

Payment Breakdown

Payment breakdown chart showing principal vs interest

Balance Over Time

Line chart showing balance over time and interest paid

When Refinancing May Be Worth It

Refinancing your car loan can be a smart way to free up cash or save on interest, but timing is everything.

When to Refinance

The best time to refinance is when market rates have dropped or your credit score has improved significantly.

  • Wait at least 6-12 months after your original loan.
  • Ensure your car isn't 'underwater' (owing more than market value).
  • Check for prepayment penalties on your current loan.

Monthly Payment Reduction and Term Extension

You can lower your payments by getting a lower interest rate, extending the loan term, or both.

  • A lower rate can reduce interest, but fees and a longer term can change the total cost.
  • Extending the term lowers payments but may increase total interest.
  • Ideal if you need more breathing room in your monthly budget.

Total Interest Change and Refinance Fees

To save the most money, aim for the lowest rate possible and keep your remaining term the same or shorter.

  • Total savings = (Old Payment × Old Term) - (New Payment × New Term).
  • Any fees for the new loan should be subtracted from your savings.
  • Compare the modeled interest change with any lender fees and the effect of extending the term.