Calculate savings from refinancing your car loan to a better rate
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Net saving
$2,542
after $300 in fees
Monthly change
+$178
vs current repayment
New repayment
$778/mo
@ 7.5% × 36 months
Break-even
6 mo
until net savings positive
Refinancing increases your monthly outflow (likely shorter term).
Lower rate cuts interest; refinance fees are added to the new path. The winner is whichever total is lower.
A steeper drop early means more principal payments now, typically the case when shortening the term.
Stuck with a high-rate car loan? Rates may have dropped, or your credit may have improved. This calculator shows if refinancing makes sense after accounting for fees.
As of 7 November 2026, the lowest car loan rate from a bank or lender is 5.74%, from Westpac's Car Loan, while the typical best across 42 institutions is 6.99%. The lowest carmaker finance rate is 2.70%, from Chery Motor Finance's Chery 4.46% EV Comparison Rate Offer, while the typical best across 12 institutions is 4.99%.
$22,000 owing at 11% with 36 months left, paying $720 a month. A new 36-month loan at 7.5% with $400 of fees.
The repayment falls to $684 a month and interest from $3,931 to $2,636. After the $400 of fees that's $895 saved, and the fees are covered in about 7 months.