Auto Refinance Calculator Comparison
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
Comparing auto refinance options can help you save money and get better loan terms. This calculator compares different refinance scenarios, helping you understand which option offers the best savings and terms for your situation.
How to Use This Calculator
To use this auto refinance calculator comparison, follow these steps:
- Enter your current loan details including the original loan amount, current interest rate, remaining term, and monthly payment.
- Input the new loan terms you're considering, including the new interest rate, loan term, and any fees or points you'll pay.
- Click "Calculate" to see the comparison results.
- Review the savings, new monthly payment, and total interest paid for each scenario.
- Use the chart to visualize the comparison between your current loan and the new refinance option.
This calculator provides an estimate based on the information you provide. Actual savings may vary depending on your specific circumstances and the lender's terms.
Formula Used
The calculator uses the following formulas to calculate the refinance comparison:
Monthly Payment Calculation:
P = L × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- P = Monthly payment
- L = Loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (loan term in months)
Total Interest Paid:
Total Interest = (Monthly Payment × Number of Payments) - Loan Amount
Total Cost of Loan:
Total Cost = Loan Amount + Total Interest
Savings Calculation:
Savings = (Current Total Cost - New Total Cost) - (Fees + Points)
Worked Example
Let's look at an example to see how the calculator works. Suppose you have a current auto loan with these details:
- Original Loan Amount: $25,000
- Current Interest Rate: 8% APR
- Remaining Term: 60 months
- Current Monthly Payment: $477.50
You're considering a new loan with these terms:
- New Loan Amount: $25,000
- New Interest Rate: 5% APR
- New Loan Term: 60 months
- Fees and Points: $500
Using the calculator, you would:
- Enter the current loan details in the "Current Loan" section.
- Enter the new loan details in the "New Loan" section.
- Click "Calculate" to see the results.
The calculator would show you that:
- Current Total Interest: $1,775.00
- New Monthly Payment: $425.50
- New Total Interest: $1,530.00
- Savings: $245.00 (after fees and points)
This example shows that refinancing to a lower interest rate can save you money over the life of the loan, even after accounting for fees and points.
Comparison of Options
When comparing auto refinance options, consider these key factors:
| Factor | Current Loan | Refinance Option 1 | Refinance Option 2 |
|---|---|---|---|
| Interest Rate | 8.0% | 5.0% | 6.5% |
| Loan Term | 60 months | 60 months | 48 months |
| Monthly Payment | $477.50 | $425.50 | $525.00 |
| Total Interest | $1,775.00 | $1,530.00 | $2,400.00 |
| Total Cost | $26,775.00 | $26,530.00 | $27,400.00 |
| Savings (after fees) | N/A | $245.00 | -$625.00 |
This comparison table shows that refinancing to a lower interest rate (Option 1) saves you money, while refinancing to a shorter term (Option 2) may not be as beneficial due to higher monthly payments and total interest.