Car Refinance Calculator
Estimate your new auto payment after refinancing and what a lower rate saves.
Refinancing a car loan replaces it with a new one at a different rate or term, based on your remaining balance rather than the car's original price. On a $25,000 balance at 7% over 5 years the payment is about $495. Refinancing pays off most when your credit has improved or rates have fallen since you bought. Enter your balance and a new rate to compare.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Estimated monthly payment
$495.03
Principal vs. interest paid per year
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,327 | $1,613 | $20,673 |
| 2 | $4,640 | $1,300 | $16,032 |
| 3 | $4,976 | $965 | $11,057 |
| 4 | $5,335 | $605 | $5,721 |
| 5 | $5,721 | $219 | $0 |
About the Car Refinance Calculator
Auto refinancing swaps your current car loan for a new one, and the starting point is your payoff balance, not what you originally paid for the vehicle. Enter that balance, the new APR you have been quoted, and the term, and this calculator returns the new monthly payment so you can measure it against what you pay today. Refinancing tends to help in two situations: your credit score has climbed since you took the original loan, or market rates have dropped, either of which can earn you a lower APR. Watch two things specific to cars. Stretching the term to lower the payment can leave you owing more than the car is worth, since vehicles lose value faster than the loan shrinks, a position known as being underwater. And a car that is too old or has too many miles may not qualify, because lenders limit how much they will lend against a depreciating asset. Auto loans rarely carry prepayment penalties, so a lower rate usually flows straight through to savings.
Frequently asked questions
When should I refinance my car loan?+
Refinance when your credit score has improved or rates have dropped enough to lower your APR, and when enough of the loan remains to make the savings worthwhile. Early in the loan, when the balance is still high, is usually the best window.
Does refinancing a car loan hurt my credit?+
The lender's hard inquiry can dip your score by a few points temporarily, and opening a new account lowers your average account age. Both effects are minor and usually recover within months if you keep up with payments.
What does it mean to be underwater on a car loan?+
You are underwater, or upside down, when you owe more than the car is worth. Vehicles depreciate quickly, so extending the term to lower the payment can deepen that gap. Refinancing into a shorter term helps you build equity faster.
Can I refinance an older car?+
Sometimes, but lenders set limits on a vehicle's age and mileage because it secures the loan. A car that is too old or has very high mileage may not qualify, or may only qualify at a higher rate that erases the benefit.