# Car Loan Refinance Calculator

> Car loan refinance calculator: compare your current auto loan against a new rate and term to see monthly savings and total interest. Free, private, no signup.

- **Canonical URL:** https://boringtoolskit.com/car-loan-refinance-calculator/
- **Category:** Vehicles
- **Evidence level:** authored-methodology
- **Reviewed:** July 26, 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Monthly payment = balance x r/1200 / (1 - (1 + r/1200)^-months), computed at the old and new rate; savings = old payment - new payment.

## Worked example

Refinance $20,000 from 7.5% to 5% over 48 months: payment drops from $483.58 to $460.59, saving $22.99 a month and about $1,104 over the loan.

## Assumptions

- The balance is refinanced for the same remaining term.
- No refinance fees, prepayment penalties, or rate changes are modeled.

## Common questions

### When does refinancing a car make sense?

When the rate drop is large enough that interest savings exceed any refinance fees, and you keep a similar term.

### Does extending the term save money?

The payment drops, but total interest often rises; compare total cost, not just the monthly figure.

## Related tools

- /car-loan-calc/
- /gas-money-calculator/
- /auto-lease-calculator/

## Sources

- [Auto loan resources](https://www.consumerfinance.gov/consumer-tools/auto-loans/)
- [Calculation methodology](/methodology/)

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*Local planning estimate. Verify current terms, rates, and policies before acting.*