Auto refinance: compare the payment, fees and debt left over

Before you start

US fixed-rate consumer auto loans. Estimates assume monthly interest and on-time payments; daily interest, irregular periods, precomputed interest, variable rates and balloon payments may produce different results. This is not a lender quote or approval.

1. Start both choices from the same obligation

For keeping the loan, use the current principal, contract rate and remaining months, not the original amount and original term. Obtain the lender’s remaining payment schedule. For refinancing, begin with the dated amount needed to close that same loan and identify accrued interest or charges that make the payoff differ from principal.

Choose one starting date and reconcile those differences explicitly. If the refinance adds cash, a product or another debt, list that extra borrowing; it is not the same service as refinancing only the existing balance. In the comparison, use the base-amount field for the relevant balance, set unused purchase and trade-in fields to zero, and enter additional costs once.

2. Separate the contract rate from every fee

The CFPB distinguishes interest rate from APR. Enter the annual contract rate that accrues on principal for the monthly estimate. Record the disclosed APR separately for reviewing the offer. If only APR is supplied, ask for the contract rate instead of treating APR plus separately entered fees as an exact amortization calculation.

Put financed charges in the financed-fee amount and separately paid charges in upfront fees; cash used to reduce borrowing belongs in cash down. Identify title, application and other charges in the actual quote. The CFPB notes that prepayment penalties depend on contract and state law; refinancing pays the old loan off and can trigger an applicable charge. Include it once in the correct place.

3. Read the monthly, horizon and full-term results together

The CFPB recommends comparing amount, rate and term along with payment. Monthly relief describes cash flow, not automatically savings. At a common evaluation month, compare payments already made, upfront cash and the balance still owed. Simply multiplying the payment difference by that month count leaves out unequal remaining balances.

Then compare full-term payments plus upfront charges. For the same underlying debt and vehicle, their difference can describe the entered nominal financing outlay; it does not discount future dollars or value cash kept today. A fee divided by the monthly payment reduction is not a reliable cost break-even when principal repayment and terms differ. Longer financing also leaves the vehicle pledged for longer.

4. Check the actual switch before relying on the estimate

Compare the model with the actual loan schedules. The CFPB explains why simple and precomputed interest differ; daily accrual and an unusual first payment period can also change totals. Keep unconfirmed charges outside any claim of savings and ask for an updated written quote if the payoff date changes.

Confirm who sends the old-loan payoff, when it must arrive, the first new payment and how the old account closure and lien change will be documented. Ask both servicers how scheduled payments during the switch are handled. Do not stop a required payment merely because an application is pending. Preserve the final disclosures and compare them with the scenario you reviewed.

Fictional example: $149.66 monthly relief, but $84.82 more overall

Assume the same car and $18,000 starting debt, with no accrued interest or other payoff adjustment. Keeping a 9% contract-rate loan for its remaining 36 months gives a $572.40 regular monthly payment. A hypothetical 6% contract-rate refinance for 48 months keeps the $18,000 principal and charges $400 separately upfront. Its regular payment is $422.74. The monthly model rounds interest to cents; final payments are $572.19 and $422.23.

Over their full terms, cash paid is $20,606.19 for the current loan and $20,291.01 + $400 = $20,691.01 for the refinance: $84.82 more. At month 12, payments plus remaining debt plus upfront fees are $19,397.97 and $19,368.34 respectively. That shorter comparison differs from the full-term result. These fictional rates are not market offers; neither measure alone chooses the right option.

Measure (USD unless months)	Keep loan	Refinance
Remaining term (months)	36	48
Regular monthly payment	$572.40	$422.74
Separate upfront fee	$0	$400
Payments through month 12	$6,868.80	$5,072.88
Debt after month 12	$12,529.17	$13,895.46
Full-term payments plus upfront fee	$20,606.19	$20,691.01

Before you finish

Use current principal and remaining term for the existing loan.
Reconcile the payoff date, accrued amounts and any extra borrowing.
Enter the contract rate and each financed or upfront fee correctly.
Review the same horizon with remaining debt, then full-term outlay.
Verify payoff delivery, payment overlap and old-account closure.

My refinance comparison notes

Use generic loan labels and document references. Do not enter account numbers, a VIN or application credentials.

Entries are optional and stay in this page's memory. This worksheet does not send or save them. Use generic account labels and document labels. Do not enter account numbers, Social Security numbers, PINs, access codes, passwords, names or addresses, and do not upload documents. Downloading or printing creates a copy you control.

Current principal, remaining schedule and payoff differences

Replacement balance, contract rate, APR and term

Fees paid upfront or financed; cash contribution

Shared starting date, horizon and excluded differences

Payoff delivery, overlapping payments and closing evidence

Resolve missing quote details and compare the lender’s final schedule before accepting an offer.

Compare two fixed vehicle loan scenarios

Use scenario 1 for the current arrangement and scenario 2 for a documented alternative. For an existing loan or refinance, enter the balance or dated payoff as the base amount and enter 0 for purchase components that do not apply. For a trade, enter both the trade value and its payoff; the engine includes their difference once.

Payments are estimates from an annual nominal rate divided by 12, with monthly interest rounded to cents and a fixed installment that clears the stated term. They may differ from a lender’s payment or dated payoff. No skipped payments, variable rates, balloon, deferral or added future fees are modeled. Both scenarios start now and use the same comparison horizon. Upfront fees are separate from financed fees. Vehicle resale value, transport, insurance, maintenance and other operating costs are omitted.

Enter actual dates as YYYY-MM-DD. If a date is unknown, leave it blank; do not invent one. Dates are calendar dates, with no time zone or time-of-day comparison. This record does not calculate a legal deadline or schedule reminders.

Amounts are US dollars: use a point and at most two decimal places, without commas or currency symbols. Enter an explicit 0 only when documented as zero. Annual rates are nominal contract rates, not APR. Rates: 0–100%; terms and horizon: 1–360 whole months; each amount: up to $1 billion. Opening cash alone may be negative.

Comparison horizon in months

Scenario 1

Scenario 1 — Base amount: current balance, payoff or vehicle price ($)

Scenario 1 — Financed taxes ($)

Scenario 1 — Financed fees ($)

Scenario 1 — Cash contribution / down payment ($)

Scenario 1 — Trade-in value ($)

Scenario 1 — Existing loan payoff on the trade ($)

Scenario 1 — Fees paid separately upfront ($)

Scenario 1 — Annual nominal contract interest rate (%)

Scenario 1 — Remaining or proposed term in months

Scenario 2

Scenario 2 — Base amount: current balance, payoff or vehicle price ($)

Scenario 2 — Financed taxes ($)

Scenario 2 — Financed fees ($)

Scenario 2 — Cash contribution / down payment ($)

Scenario 2 — Trade-in value ($)

Scenario 2 — Existing loan payoff on the trade ($)

Scenario 2 — Fees paid separately upfront ($)

Scenario 2 — Annual nominal contract interest rate (%)

Scenario 2 — Remaining or proposed term in months

Questions you may have

If the APR is lower, must the refinance cost less?

No. The term, financed amount, upfront charges and actual payment schedule still matter. Compare APR with APR in the disclosures, but use the contract interest rate in the monthly model.

Can I call the monthly payment reduction my interest savings?

No. Part of the reduction may come from repaying principal more slowly. Compare interest and fees, show the balance at the same horizon, and inspect the full-term result.