Auto Loan Refinance Calculator

Auto loan refinancing can reduce your monthly car payment and total cost of a car loan, sometimes by thousands of dollars. Our auto refinancing calculator shows how much you might save by replacing your original auto loan with an auto refinance loan.

Here are some tips for making a meaningful comparison and, ultimately, a smart financial decision.

See if refinancing will lower your monthly payment

Details about your current loan

You’ll need information about the car loan you have now, specifically the remaining balance, interest rate and loan term (length in months). You can find this on your latest car loan statement or by calling your lender. Many lenders also provide it through an online account or app. If you don't have exact details, estimate as close as possible.

Details about the new refinance loan

For the new auto refinance loan, you'll need the amount you want to refinance, loan term and interest rate. Since you may still be deciding if you want to refinance, it’s likely you won’t have exact figures for a new loan. Here are a few ways you can come up with these numbers.

• Refinanced loan amount: Use the balance you still owe on your current auto loan. Again, this can be found on your loan statement, by contacting your lender or through an online account. Note that using the “payoff amount” is more accurate than current balance, because it includes any fees and interest that accrue until you pay off the loan.

• New loan term: You can try different terms in the auto refinance calculator. You may want to simply use the number of months remaining on your current loan. You can also go with fewer months than you now have remaining, which will enable you to pay off your loan sooner and pay less interest. A third option is to extend the loan term, which will lower your payment but increase your total interest cost. Going with a longer term can also lead to being upside-down on your car loan, which is owing more than your car is worth.

• New interest rate: Of course, your goal with refinancing is likely to find a lower interest rate. You can check auto refinance lenders and rates online to get an idea of the current market's rates. Another option is to apply for pre-qualification with several auto refinancing lenders. Auto loan pre-qualification isn’t loan approval, but it gives you an estimate of the APR you’ll qualify for.

Reasons to consider refinancing an auto loan

People refinance cars for many reasons, including simply to remove a co-borrower from a loan. However, if you’re using an auto refinance calculator, it’s likely that you want refinancing to improve your financial situation. Here are some times when an auto refinance loan might enable you to do just that.

• Interest rates have dropped: If auto loan rates in general fall lower than when you first got your car loan, refinancing could be an opportunity to take advantage of lower auto refinance rates. In the past few years, auto loan rates have climbed and remained high, but as of late 2024 they've started to fall.

• Your credit has improved: If you had poor credit when you got your car loan, you may have a high interest rate. You might now qualify for a lower interest rate, if you’ve made consistent, on-time payments for 6 to 12 months. You can check your credit report and score for free through NerdWallet.

• You didn’t shop rates and took dealer financing: When you got your original loan, the dealership might have charged you a higher interest rate than you could have qualified for elsewhere — especially if it knew you weren’t comparing loan offers. But, with refinancing, you can still shop for a lower rate.

• Your current payment is too much: Refinancing for a longer term can reduce your monthly payment; however, you will pay more interest over the life of the loan. Still, it’s a better option than missing payments or facing repossession if you’re really struggling to make payments on time.

Next step: Apply for an auto refinance loan

An auto refinance calculator is a helpful tool to estimate what you might save with refinancing — whether on your monthly payment, total loan cost or both. But keep in mind that factors unique to you, including your car’s age and mileage, contribute to the interest rate you’ll receive. Your actual savings could be more or less than what the calculator shows.

The process for auto loan refinancing is much like when you applied for your original loan, and many lenders return a loan decision in a matter of minutes.

At some point in the auto refinancing process, most lenders will request the following information, so you can prepare by gathering it ahead of time.

• Your driver’s license.

• Vehicle registration.

• Proof of insurance.

• The vehicle identification number, or VIN, of your car.

• Pay stubs from your current employer or proof of employment.

• Your Social Security number.

• A statement of loan payoff amount from your current lender.

If you pre-qualify with lenders to obtain rate estimates for the auto refinance calculator, you might opt to move forward with your best pre-qualified offer. Lenders may request additional information from you before approving the loan.

If you’re still contemplating where to apply for an auto refinance loan, you have several options. Most banks and credit unions offer auto refinancing, and you can apply at a local branch or online to lenders outside of your area. Online aggregators that send your application to a network of lenders are another option.

Regardless of where you apply, it’s a good idea to get offers from more than one lender to find your best auto refinance rate. Just make sure to submit all applications within a 14-day period, so hard credit inquiries are treated as one and have less of an impact on your credit scores.