Lendingtree Auto Refinance Calculator
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Reviewed by Calculator Editorial Team
Refinancing your auto loan can save you money over time, but it's important to understand the process and potential savings. Our LendingTree Auto Refinance Calculator helps you estimate your potential savings by comparing your current loan with a new refinanced loan.
How the LendingTree Auto Refinance Calculator Works
The calculator estimates your potential savings by comparing your current auto loan with a new refinanced loan. It takes into account factors such as your current interest rate, loan term, monthly payment, and the new interest rate and term you're considering.
Key Formulas
Monthly Payment Calculation:
P = L × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- P = Monthly payment
- L = Loan amount
- r = Monthly interest rate (APR/12)
- n = Number of payments (loan term in months)
Total Interest Paid:
Total Interest = (Monthly Payment × n) - Loan Amount
The calculator uses these formulas to compare your current loan with the potential refinanced loan, showing you the difference in monthly payments and total interest paid.
How to Use the Calculator
- Enter your current loan details: loan amount, current interest rate, and current loan term.
- Enter the new loan details: new interest rate and new loan term you're considering.
- Click "Calculate" to see your potential savings.
- Review the results, including monthly payment comparison and total interest saved.
Note: The calculator provides estimates only. Actual savings may vary based on your specific situation and the lender's terms.
Example Calculation
Let's say you have a $20,000 auto loan with a 5% interest rate and a 48-month term. You're considering refinancing to a 3% interest rate with a 60-month term.
| Loan Detail | Current Loan | Refinanced Loan |
|---|---|---|
| Loan Amount | $20,000 | $20,000 |
| Interest Rate | 5% | 3% |
| Loan Term | 48 months | 60 months |
| Monthly Payment | $441.36 | $350.38 |
| Total Interest Paid | $1,112.32 | $702.68 |
| Total Cost of Loan | $21,112.32 | $20,702.68 |
In this example, refinancing saves you $90.98 per month and $409.64 in total interest over the life of the loan.
Frequently Asked Questions
How accurate is the LendingTree Auto Refinance Calculator?
The calculator provides estimates based on the formulas shown. Actual savings may vary based on your specific situation and the lender's terms.
What factors should I consider when refinancing an auto loan?
Consider factors such as your credit score, the new interest rate, loan term, and any fees associated with refinancing. Also consider whether refinancing will save you money in the long run.
How long does it take to refinance an auto loan?
The refinancing process typically takes 30 to 45 days, depending on your lender and the complexity of your situation.
Can I refinance an auto loan with bad credit?
It's possible to refinance an auto loan with bad credit, but you may face higher interest rates and fees. It's important to shop around and compare offers from multiple lenders.