Auto Refinance Calculator

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How to use this auto refinance calculator

  1. Enter your current balance. Type in the amount you still owe on your existing auto loan, found on your most recent loan statement.
  2. Add your current monthly payment. Input what you pay each month toward your current loan.
  3. Enter your current interest rate. Use the APR listed on your loan statement or in your lender’s online portal.
  4. Input your refinance loan amount. This is usually the same as your current balance, unless you plan to pay down part of it first.
  5. Choose your new loan term. Select how many years you’d like to take to repay the refinanced loan (1 to 7 years).
  6. Enter the new interest rate. Plug in the APR from a refinance offer you’ve received or an estimate based on your credit tier.
  7. Review your results. The calculator instantly shows your new monthly payment, remaining months and total interest, along with how much you could save by refinancing.

See how much you could save with our auto refinance calculator

Grab your current auto loan paperwork

Find a recent bill or log into your lender’s customer portal and note your monthly payment amount, remaining balance, time left on your loan and current auto loan annual percentage rate (APR).

Get some offers

You can’t be sure you’re not leaving money on the table if you don’t shop around. Get a handful of auto refinance offers so you can find the best deal. You can compare offers from up to five lenders using LendingTree’s loan marketplace.

Crunch the numbers

Once you know your current auto loan details and what kind of refinance auto loans you could qualify for, it’s time to use our auto refinance calculator. Simply plug each figure into the corresponding box. The more accurate your inputs — especially your payoff balance and APR — the closer your estimate will be, since the calculator amortizes exactly the numbers you enter and doesn’t include fees or taxes.

What is auto loan refinancing?

Refinancing a car loan is the act of trading your current auto loan for a new one, ideally one with a lower interest rate. You’ll use the refinance loan to pay off your original loan. In its place, you’ll make payments on your refinance loan.

Refinancing your auto loan can lower your monthly payment in two ways:

  • If your credit has improved since you took out your current car loan or interest rates have dropped, you might qualify for a lower rate, resulting in a lower bill.
  • Your new lender may offer you a longer loan term. This will give you more time to pay what you owe, spreading your balance further (which will usually bring down your payment).

Average APRs for auto refinance loans

Credit tierAverage APR
Excellent (800 and above)6.30%
Very good (740-799)6.48%
Good (670-739)7.50%
Fair (580-669)10.10%
Poor (under 580)13.38%
Source: Average APRs offered to LendingTree customers seeking auto loans to refinance light trucks and cars in Q4 2025.

Not all cars can be refinanced

Restrictions vary by lender, but certain cars are not typically approved for refinancing. For instance, you might not be able to refinance if your car has more than 100,000 miles. You probably can’t be behind your existing loan, either.

How to refinance an auto loan with LendingTree

Check your credit score
Use the LendingTree app to get your free credit score. We’ll use your credit score to personalize your auto refinance offers.

Compare your offers
Get multiple offers from up to five lenders by filling out just one form.

Refinance your car
Once you choose your desired lender, you’ll need to officially apply. If approved, the lender will guide you on how to complete the process.

See Personalized Results

When is auto loan refinancing a good idea?

  • When your credit score has improved
    If you’ve improved your credit score since buying your car, you could qualify for a lower APR.
  • When rates have dropped since you bought your car
    If you financed during an inflationary peak and rates drop, that could be an ideal time to refinance.
  • When you need a lower monthly payment
    Extending your loan term when you refinance might get you a lower monthly car payment. That’s because you’ll have more time to spread your loan balance across. Keep in mind that the longer it takes you to pay off your loan, the more overall interest you may pay. Still, that breathing room could be worth it for some.
  • When you have dealership financing
    Allowing the dealer to set up your loan can be convenient, but it also comes at a cost. Dealers have no obligation to shop for the best auto loan rates. And if you’re paying higher interest rates because of in-house financing, consider refinancing your car loan with bad credit.
  • When you want to add or remove a cosigner
    Many auto loan refinance lenders will allow you to add a cosigner. Adding a creditworthy cosigner can help lower your interest rates. If you already have a cosigner but you’d like to remove them, refinancing can help you do that, too. Removing a cosigner will mean that person will no longer be responsible for your loan. On the downside, any positive impact that person had on your rate will no longer apply.
Illustration of urban buildings with trees and a streetlamp.

When is auto loan refinancing a bad idea?

  • If you don’t qualify for a lower rate
    Refinancing probably won’t make sense if your credit score hasn’t gone up since you bought your car.
  • If you don’t have much time left on your loan
    If you’re close to paying off your car loan, then refinancing might not be worth it. Even if you qualify for a lower rate, the difference in overall interest you’ll pay might be negligible. Also consider possible title transfer and registration fees that could come with refinancing.
  • If you still can’t afford your monthly payment
    If you still can’t swing your car note after refinancing, you may need to explore how to get out of your car loan, instead.

Want to learn more? See LendingTree’s Auto Refinance Resources

Frequently asked questions

Refinancing can cause a small, temporary dip in your credit score. When you apply, lenders perform a hard credit inquiry, which may lower your score by a few points. Opening a new loan also reduces the average age of your accounts. However, these effects are usually minor and short-lived. If refinancing lowers your payment and helps you stay current, it can benefit your credit over time. To minimize the impact, try to complete all of your rate shopping within a 14- to 45-day window so multiple inquiries count as one.

Your savings depend on the difference between your current interest rate and your new rate, your remaining balance and your loan term. For example, lowering your APR from 9.00% to 6.00% on an $18,000 balance over 48 months could save roughly $1,310 in total interest. Use the auto refinance calculator above to estimate your own monthly and total savings based on your specific numbers.

Refinancing may come with fees such as title transfer, re-registration or lien-holder charges, and some lenders charge prepayment penalties on your original loan. These costs are usually modest, but it’s smart to factor them in to make sure your interest savings outweigh any fees.

Many lenders will let you refinance within a few months of buying your car, though some require you to wait 60 to 90 days while your title is processed and your new loan appears on your credit report. Check each lender’s requirements before applying.

It can be harder to refinance when you have negative equity (you owe more than the vehicle’s value), since many lenders limit how much of the car’s value they’ll finance. Some lenders do work with upside-down borrowers, but you may face a higher rate or need to pay down part of the balance first.

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