Auto Refinance Calculator
Compare your current car loan against a new refinanced loan and see your potential savings.
Current Auto Loan
New Loan Terms
Refinancing Analysis
| Item | Current | Refinanced | Difference |
|---|---|---|---|
| Monthly payment | $450 | $419 | -$31/mo |
| Interest rate | 8.5% | 5.5% | -3.00% |
| Remaining term | 48 months | 48 months | 0 months |
| Total remaining cost | $21,600 | $20,094 | -$1,506 |
| Total interest | $3,600 | $2,094 | -$1,506 |
| Refinance fees | $0 | $0 | +$0 |
Refinancing Tips
- 1.Refinancing saves you $1,506 total — it's worth it after 0 months
- 2.Check your credit score before applying — a 50-point improvement can save 1-2% on your rate
- 3.Apply with 3-5 lenders within 14 days — multiple auto loan inquiries count as one hard pull
Estimates based on standard amortization. Actual rates depend on credit score, vehicle age, and lender. Shop multiple lenders for the best rate.
When Does Auto Refinancing Make Sense?
Refinancing your car loan replaces your existing loan with a new one — ideally at a lower interest rate. The average auto loan rate in 2026 is 6.5–7.5% for new cars and 8–10% for used cars. If your credit score has improved since you financed or if market rates have dropped, refinancing can save hundreds or thousands of dollars. The general rule: refinancing is worth it if you can drop your rate by at least 1–2 percentage points and you have at least 12 months remaining on your loan.
Average Auto Loan Rates by Credit Score (2026)
| Credit Score | New Car Rate | Used Car Rate | Monthly Payment ($25K loan, 60 mo) |
|---|---|---|---|
| 781–850 (Super Prime) | 4.5–5.5% | 5.5–6.5% | $465–$478 |
| 661–780 (Prime) | 5.5–7.0% | 7.0–8.5% | $478–$502 |
| 601–660 (Nonprime) | 8.0–10.0% | 10.0–13.0% | $517–$551 |
| 501–600 (Subprime) | 11.0–14.0% | 14.0–18.0% | $551–$610 |
| 300–500 (Deep Subprime) | 14.0–20.0% | 18.0–25.0% | $610–$700+ |
Refinancing Savings Example
| Scenario | Rate Drop | Balance | Monthly Savings | Total Savings (48 mo) |
|---|---|---|---|---|
| Small improvement | 8% → 6% | $15,000 | $15 | $720 |
| Moderate improvement | 10% → 6% | $20,000 | $45 | $2,160 |
| Large improvement | 14% → 6% | $25,000 | $105 | $5,040 |
| Credit rebuild | 18% → 8% | $18,000 | $95 | $4,560 |
Frequently Asked Questions
Does refinancing a car hurt your credit score?
Applying creates a hard inquiry, which temporarily lowers your score by 5–10 points. However, if you apply with multiple lenders within a 14-day window, all inquiries count as a single pull. Over time, the lower payment and consistent on-time payments can actually improve your score. The short-term dip is usually worth the long-term savings.
Can I refinance if I owe more than my car is worth?
It's more difficult but not impossible. Some lenders refinance up to 125% of the car's value. However, being "upside down" on your loan means refinancing might not save you much — the higher loan-to-value ratio often means a higher rate. Consider making extra payments to get above water first, then refinancing.
See also: Auto Loan Calculator and Car Lease vs Buy Calculator.