Enter your current auto loan details (remaining balance, interest rate, months remaining) and the new loan terms you're considering (interest rate, term length, refinance fees). The calculator instantly compares both scenarios side by side.

The verdict at the top tells you whether refinancing saves or costs money, along with the break-even month — the point at which your cumulative savings exceed the upfront refinance fees. The chart shows your cumulative savings trajectory over time.

Refinancing means replacing your current auto loan with a new one, typically at a lower interest rate. The new loan pays off the old one, and you make payments on the new loan going forward.

When Refinancing Makes Sense

Refinancing is typically beneficial when: (1) interest rates have dropped since you took out your original loan, (2) your credit score has improved significantly, or (3) you want to change your loan term. Even a 1-2% rate reduction can save hundreds or thousands of dollars over the remaining life of your loan.

The Break-Even Point

Refinancing usually involves fees ($200–$500 or more). The break-even point is the month at which your cumulative monthly savings exceed these fees. If you plan to sell or trade in the car before the break-even point, refinancing may not be worth it.

Refinancing Pitfalls

Be cautious about extending your loan term significantly. While a longer term lowers your monthly payment, you may end up paying more total interest — even at a lower rate. Also, avoid refinancing if your car is worth less than you owe (negative equity), as many lenders won't approve the loan.