How to compare car refinance offers
Start with today’s principal balance, current APR and remaining months—not the original vehicle price or original term. The calculator estimates the remaining current payment and compares it with a new amortizing loan that includes the entered fees.
Total refinance cost = new payments − current principal balance
Total savings = remaining current payments − new payments
A lower payment is not always a saving
Restarting a long term can lower the monthly bill while keeping you in debt longer and increasing total interest. Compare total payments as well as APR. Matching the new term to the remaining current term makes the cost comparison easier to interpret.
What the break-even estimate means
Break-even divides the entered refinance fees by estimated monthly payment savings. It is a simple cash-flow measure, not a full present-value analysis. If the new payment is not lower, a monthly-savings break-even is not reached.
Before refinancing an auto loan
Check for application, title-transfer and lender fees; confirm whether any amount is paid upfront or financed; and compare the new payoff date. Credit inquiries and vehicle-age or mileage limits can also affect the offer available to you.