Is a lower monthly car payment always a win?

No. Stretching the term lowers the payment and can raise total interest. Compare the new payment against the payment that would keep the original payoff date to see what the longer term costs.

When do car refinance closing costs pay for themselves?

Divide the closing costs by the monthly payment drop. If that break-even point falls after the month you plan to sell the car, the fees are never earned back.

Why use the payoff figure instead of the app balance?

A payoff quote includes interest accrued since the last payment, so it is higher than the balance shown in an app. Refinancing uses the payoff figure.

Can I refinance a car if I owe more than it is worth?

Often not. Lenders commonly cap the new loan near 125 percent of the car's value, and above that ceiling most applications stop.

Should you refinance your car, or keep the loan you have?

Nine numbers in. Seventeen answers out — including the one that matters: a straight verdict, and the reason behind it. A lower payment is not the same as paying less.

Example numbers are pre-filled so you can see it working. Replace them with yours — everything recalculates as you type.

Your inputs

Current payoff balanceCall the lender and ask for the payoff figure. It includes accrued interest, so it is higher than the "balance" in the app.

Current APR on the loan you have

Current monthly paymentPrincipal and interest only — leave insurance out.

Months left on the current loan

New APR you have actually been quotedUse the lowest real offer you hold — not an advertised rate.

New loan term36, 48, 60 or 72 months.

Closing costsTitle, lien recording, doc fee, plus any prepayment penalty.

What the car is worth todayKBB private-party or trade value.

Months you will realistically keep itBefore you sell or trade it in.

The verdict

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New monthly payment

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Monthly drop

—

Payment & savings

Your new payment, and how fast the fees pay for themselves

True cost compare

Total interest both ways — and the price of a longer term

Sell early

What you actually pocket if you sell before either loan ends

Take these numbers with you

Your verdict above is already complete and always free. If you want a spreadsheet you can keep, re-run against a second quote and show the lender, we'll send the free starter workbook: the Inputs tab and the Payment & Savings tab, 6 live formulas, yours to type your own figures into.

Your numbers never leave your browser — every calculation on this page runs on your device. The only thing we ever send is the email address you type here, and one click unsubscribes.

Want the full four-sheet workbook?

This page is one slice of it. The paid version is the spreadsheet itself — 17 live cross-sheet formulas, so you can park two competing quotes side by side and watch the verdict cell flip:

Inputs — the nine cells you edit
Payment & Savings — 6 results, including the PMT amortisation
True Cost Compare — 6 results, including the cost of stretching the term
Sell-Early & Verdict — 5 results, ending in the verdict cell

Works in Excel, Google Sheets and Numbers. $12, one payment, yours to keep.

Get the full refinance workbook — $12

Questions this calculator answers

Is a lower monthly payment always a win?: No. Stretching the term lowers the payment and can raise the total interest. The "what stretching the term costs you" row prices exactly that, by comparing your new payment against the payment that would keep your original payoff date.
When do the closing costs pay for themselves?: Divide the fees by the monthly drop. If that break-even lands after the month you plan to sell the car, you paid fees you never earned back — which is one of the three tests behind the verdict.
Why does the payoff figure matter more than the app balance?: A payoff quote includes interest accrued since your last payment, so it is higher. Refinancing uses the payoff figure, and using the app balance makes every result here look better than reality.
Can I refinance if I owe more than the car is worth?: Often not. Lenders commonly cap the new loan near 125% of value — the ceiling this calculator checks. Above it, most applications stop, which is why the verdict turns to "keep the loan".

This is a calculator, not financial advice. Your lender's payoff figure, fees and loan-to-value cap are the ones that count — check them before you apply.

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