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Auto Refi Calculator

Reviewed by Calculator Editorial Team

Use this Auto Refi Calculator to estimate your potential savings and monthly payment when refinancing your auto loan. Simply enter your current loan details and the new loan terms you're considering, then click "Calculate" to see your results.

How to Use This Calculator

To use the Auto Refi Calculator:

  1. Enter your current loan balance in the "Current Loan Balance" field.
  2. Enter your current interest rate in the "Current Interest Rate" field.
  3. Enter the remaining term of your current loan in the "Current Loan Term" field.
  4. Enter the new interest rate you're considering in the "New Interest Rate" field.
  5. Enter the new loan term you're considering in the "New Loan Term" field.
  6. Click the "Calculate" button to see your estimated savings and new monthly payment.

The calculator will display your estimated total savings, the amount you'll save on interest, and your new monthly payment.

Formula Used

The calculator uses the following formulas to calculate your results:

Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1) Where: P = Principal loan amount r = Monthly interest rate (annual rate / 12) n = Number of payments (loan term in months)

For the current loan:

Current Monthly Payment = Current Loan Balance * (Current Monthly Rate * (1 + Current Monthly Rate)^Current Loan Term) / ((1 + Current Monthly Rate)^Current Loan Term - 1)

For the new loan:

New Monthly Payment = Current Loan Balance * (New Monthly Rate * (1 + New Monthly Rate)^New Loan Term) / ((1 + New Monthly Rate)^New Loan Term - 1)

Total Savings on Interest = (Current Monthly Payment * Current Loan Term) - (New Monthly Payment * New Loan Term)

Worked Example

Let's say you have a current auto loan with:

  • Current Loan Balance: $20,000
  • Current Interest Rate: 5.5% APR
  • Current Loan Term: 60 months (5 years)

You're considering refinancing to:

  • New Interest Rate: 3.5% APR
  • New Loan Term: 72 months (6 years)

Current Monthly Payment: $352.47

New Monthly Payment: $298.14

Total Savings on Interest: $1,533.33

In this example, refinancing would save you $1,533.33 over the life of the loan, with a lower monthly payment of $298.14 compared to your current payment of $352.47.

Frequently Asked Questions

How accurate is the Auto Refi Calculator?
The calculator provides estimates based on the formulas shown. For precise figures, consult with your lender or use their exact refinancing terms.
What factors affect auto refinancing savings?
Savings depend on your current interest rate, loan term, credit score, and the new loan terms you qualify for. Lower rates and shorter terms typically result in greater savings.
Is it always better to refinance an auto loan?
Not necessarily. Refinancing may not be beneficial if you can't secure a lower rate or if the fees and closing costs outweigh the savings. Consider your specific financial situation.
How long does auto refinancing take?
The process typically takes 30-45 days, though some lenders may process applications faster. Always check with your lender for their specific timeline.