Auto Refinance Calculator

Find potential savings with our car refinance calculator

Plug your numbers into LendingTree’s car refinance calculator to find out how much you may save by refinancing your auto loan.

For your current loan, you need to know:

  • Current loan balance. This is how much you still owe on the loan. It is not how much you originally borrowed.
  • Current monthly payment. This is how much you pay monthly on your current auto loan. It includes principal, interest and fees.
  • Current interest rate. This is how much you’re paying your current lender for the loan, expressed as a percentage. If your lender provides the annual percentage rate (APR), that includes the interest rate plus any fees or additional costs you may owe. You can use the APR instead of the interest rate to provide a more accurate estimate.

For your refinance loan, you need to know or estimate:

  • Loan amount. This is how much you want to borrow. It may be more than the current loan balance if you want to do a cash-out refinance. It may be less if you make a down payment.
  • Loan term. This is how long you want your new loan to be, from 2 to 7 years.
  • Interest rate. This is the new interest rate you expect to pay on your refinance loan. Again, if the lender provides an APR, use that percentage as it’s more specific.

Why refinance your auto loan?

You financed through a dealership. As the middleman, dealers can often raise customers’ auto loan interest rates by around 2%. If you didn’t get an auto loan preapproval from a lender, you might be paying more in interest than needed.

Your credit score or income improved. If your credit score improved significantly, you may be able to qualify for a lower refinance rate. If your income grew because of a new job or promotion, this may be true as well.

You found a cosigner. A cosigner could improve your auto loan rate, especially if they have good credit and income.

You need a lower monthly payment. It’s better to refinance your auto loan for a lower monthly payment than it is to miss payments, pay late fees and compounded interest — and worry about a possible repossession.

What to expect in your auto loan refinance

Terms: Auto loan refinance terms include 36-month auto loans and 60-month auto loans, but they can range from 24 to 84 months depending on the lender and your situation.

Amounts: The maximum and minimum auto loan refinance amounts can vary greatly. For example, Navy Federal Credit Union has a minimum auto loan balance requirement of only $250 and no maximum.

Rates: Refinance auto loan rates are higher than new-car rates and more similar to used-car rates because you are, in fact, financing a used car. The exact rate you get will depend on your credit and income. Here are average auto loan APRs by credit score that borrowers obtained through LendingTree’s platform:

How to refinance your car loan

Gather key info. So that you’re not running around the house looking for paperwork before the online application signs you out, gather the paperwork beforehand. You may need to know the following:

• Current loan balance or payoff amount
• Current loan APR
• Original loan amount
• Current loan length and how many months you have left

Apply to lenders. Applying to multiple lenders in a 14-day window only counts as one inquiry on your credit report. We recommend applying to a few at one time so you stick within the window and can compare the offers together. You could fill out an online form at LendingTree and get up to five auto refinance loan offers from lenders, depending on your creditworthiness. Potential lenders can be credit unions, banks and online financers.

Pick and choose. Compare your offers. Look at the monthly payment and APR. Consider what’s the cheapest and the most convenient for you. To reject an offer, you don’t have to do anything. Many auto loan offers expire within 30 days. To accept an offer, contact the lender so it can guide you through the rest of the process.

Is an auto loan refinance worth it?

If you’re considering an auto loan refinance, use the auto refinance calculator and see how you could lower your payment or save money.

It may be worth it if lowering your payments would give you peace of mind and free up your monthly budget. It could also be worth it if refinancing would save you money.

It may not be worth it if refinancing your car wouldn’t save you money or lower your car payment enough to make a difference.