This free online Refinance Auto Loan Calculator will calculate the monthly payment and interest cost comparison between your current car loan and a new refinance loan.
Plus, unlike most other auto finance calculators, the refinance auto loan calculator also gives you the option of increasing the size of the refinance balance to include an amount of cash you think you might need -- though I personally would only recommend doing so if you will use the cash to pay down higher interest rate debt.
Throughout my career of building online calculators I have continually encountered mortgage, student loan, and auto refinance calculators that use the term "monthly savings" when referring to a lower monthly payment. In my opinion this is false advertising, because in many instances the lower monthly payment will only serve to increase the cost of the existing loan.
How can that be? Well, if the smaller payment must be made for a longer period of time (higher number of payments), then the total of all lower payments can be more than the total of the smaller number of higher payments.
The only way to tell whether or not refinancing will actually save you any money is to calculate the total interest cost for both the before and the after. If the total interest cost for the refinanced car loan is less than the total interest cost for the existing loan, then yes, refinancing will save you money.
Otherwise, if the total interest cost after refinancing is greater than the total interest cost of the existing note, then no matter how low the payment is, refinancing is not saving you money ... it's costing you money.
Please keep this in mind when using any refinance calculators that are not located on free-online-calculator-use.com. I will never use the word "savings" unless actual savings have been calculated to exist.
With that, let's use the Refinance Auto Loan Calculator to calculate the monthly payment and interest cost comparison between your existing car note and the refinanced car note.
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Original loan amount: The original dollar amount of the car loan (principal amount).
Original loan term in months: The term (number of monthly payments) of the original car loan.
Original monthly payment amount: The monthly payment amount for the original car loan.
Number of payments already made: The number of monthly payments already made on your original car loan (enter a zero if no payments have been made).
New refinance annual percentage rate: The new annual percentage rate (APR) that will apply to car loan refinance.
New refinance term in months: The new number of monthly payments that will apply to the car loan refinance.
Lender refinancing fees: Enter the total of any refinancing fees charged by the lender. Place a checkmark in the box if you would like the refinancing fees included in the refinance loan amount (not recommended). In either case the fees will be added to the refinancing interest cost.
Additional cash needed: If you would like to borrow an amount over and above what you owe (not recommended!), enter the amount in this field. The Refinance Auto Loan Calculator will add the cash amount to existing balance to arrive at the amount to refinance.
Principal result row: Based on your entries, the first column in this row is the amount you still owe on the original amount borrowed. The second column in this row is the first column plus any additional cash you wish to borrow when you refinance. The third column shows how much higher or lower the refinance principal is than the current principal.
Monthly payment result row: This row contains your current monthly payment and new refinance monthly payment. The third column shows how much higher or lower the refinance payment is than the current payment.
Interest rate result row: The first column in this row is the calculated annual interest rate of your original car loan. If this result does not match the interest listed on the note, please double check your entered terms. The second column shows the new refinance rate you entered in the top portion of the refinance auto loan calculator. The third column shows how much higher or lower the refinance rate is than the current rate.
Number of payments result row: This row shows the number of monthly payments for your current and refinanced car loan. The third column shows how much higher or lower the refinance number of payments is than the current remaining number of payments.
Interest cost result row: The first column in this row shows how much interest you will pay if you leave your existing car loan as is. The second column shows how much interest you will pay if you refinance. If the first column is less than the second column, you will not save any money by refinancing your car note. The third column shows how much higher or lower the refinance interest and fees cost is than the current remaining interest cost.