The Refinance Savings Calculator Output, Explained

The two numbers that matter

Monthly savings: new payment minus old payment. Lifetime savings: total interest under old loan minus total interest under new loan (over the SAME remaining term — not a stretched term).

The decision threshold

Refinance if lifetime savings exceed $300 AND your remaining term is 12+ months. Below $300, the application time and credit-pull aren't worth it. Below 12 months remaining, there's not enough runway for compounding to matter.

The trap to avoid

Be careful when the calculator defaults to extending the term. Lower monthly payment LOOKS attractive but increases lifetime interest. Always re-run the calc with 'remaining term' equal to your current remaining term — that's the apples-to-apples comparison.

When to refinance even if savings are small

If your credit score has improved sharply (60+ points) AND market rates are flat, you can refinance the same payment at a much shorter term — effectively paying off the car faster with no monthly impact.

Frequently asked questions

Does the calculator include the cost of refinancing?

Most don't — assume $0 origination fee for most online lenders (LightStream, Autopay, MyAutoLoan all charge nothing). Credit unions sometimes charge $50–$100; subtract from your lifetime savings.

What if I don't know my current APR?

Pull your most recent statement or call your lender. Annual percentage rate is required to be disclosed on every statement under TILA.