Auto Loan Refinance Calculator

How the calculation works

A fixed payment is P × r / [1 − (1 + r)^−N], with P/N at zero interest. Each period subtracts principal after interest. Net savings at a horizon = current payments + current remaining principal − proposed payments − proposed remaining principal − upfront refinance fees. Financed fees are included in the new principal instead.

Worked example

A $20,000 balance over 48 months at zero interest costs $416.67 per month. Refinance to the same zero-interest term with $300 paid upfront: the payment stays $416.67, lifetime net savings are −$300, and break-even is never reached.

Assumptions and limitations

Both rates are fixed nominal annual interest rates divided by twelve, with end-of-month payments. APR can include costs differently; this tool treats the entered rate as the loan interest rate and fees as separate inputs. A current payment of zero derives the payment from the remaining term; a positive current payment instead determines its implied payoff schedule.

No lender, product or refinancing recommendation is made. Compare costs at the same horizon, not payments alone. Break-even is the first month after which modeled net savings remain nonnegative through both payoff dates. No tax deduction, prepayment penalty, daily accrual or discounting is automatic; include relevant costs in fees.

Sources and editorial responsibility

Maintained by Renvoro Pty Ltd. These mathematical estimates do not provide financial, tax, legal or investment advice.

• CFPB: loan terms and total borrowing cost