1. What is Auto Loan Refinancing Savings?

The Auto Loan Refi Savings Calculator helps you determine how much you could save by refinancing your current auto loan. It compares your remaining payments on the original loan with the projected payments on a new loan.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( original\_remaining\_payments \) — Number of payments left on original loan
• \( old\_PMT \) — Current monthly payment amount
• \( remaining\_P \) — Remaining principal balance
• \( new\_n \) — Term of new loan (in months)
• \( new\_PMT \) — New monthly payment amount

Explanation: The formula calculates the difference between what you would pay on your current loan versus what you would pay with the new loan.

3. Importance of Refinancing Calculation

Details: Calculating potential savings helps determine if refinancing makes financial sense, considering any fees or penalties associated with refinancing.

4. Using the Calculator

Tips: Enter all required fields accurately. Be sure to include any refinancing fees in your calculations. Positive savings indicate money saved by refinancing.

5. Frequently Asked Questions (FAQ)

Q1: Does this include refinancing fees?
A: No, this calculation doesn't include any refinancing fees. You should subtract those from your total savings.

Q2: What if my new loan has a different interest rate?
A: The difference in interest rates is reflected in the new monthly payment amount you enter.

Q3: Should I refinance if I'm close to paying off my loan?
A: Usually not, as fees may outweigh savings. This calculator helps you make that determination.

Q4: How accurate is this calculation?
A: It's accurate for comparing total payments, but doesn't account for time value of money.

Q5: Can I use this for other types of loans?
A: While designed for auto loans, the same principle applies to other installment loans.