Keep your loan or replace it?

How the comparison works

We work out what’s left to pay on your current loan at its current payment, then the full cost of a new loan at the rate and term you enter, plus fees. The break-even point is how many months of lower payments it takes to earn back the fees.

Watch the term. Stretching a loan over more months lowers the payment but can raise the total, even at a lower rate. The second example in refinancing a car loan walks through that trap.

Limits

• We assume your current loan has no prepayment penalty and uses simple interest. Some auto loans use precomputed interest, which changes how much you save by paying off early.
• Title and registration fees vary by state; ask the new lender for an itemized list.
• If you owe more than the car is worth, some lenders won’t refinance or will charge more.