Unlock significant savings with our Car Refinance Calculator. Easily compare your current auto loan with potential new terms to see how much you could save monthly and over the life of the loan. Discover if refinancing can lower your interest rate and reduce your financial burden.
Formula:
The calculator uses the standard loan payment formula (PMT) to compare your current and potential new loan terms:
PMT = P [ i(1 + i)n ] / [ (1 + i)n – 1]
- PMT: Monthly Payment
- P: Principal Loan Amount (Your current outstanding balance)
- i: Monthly Interest Rate (Annual Rate / 12 / 100)
- n: Total Number of Payments (Loan Term in Months)
By calculating PMT for both your existing loan and a potential new loan, we determine your monthly savings and the overall reduction in total interest paid over the remaining loan period.