Cash-Out Auto Refinance Calculator and Loan Costs

A cash-out auto refinance calculator estimates the monthly payment and total interest on a replacement car loan when you borrow more than the amount needed to pay off your current loan. Enter the new loan amount, APR, and term to see the estimated cost; the calculator does not determine how much cash a lender will approve.

Formula

The calculator treats the amount financed as a fixed-rate installment loan with equal monthly payments. Its payment formula is:

Monthly payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

• P is the new loan amount in dollars.
• r is the monthly interest rate, calculated as APR ÷ 1,200. APR is entered as a percentage per year.
• n is the number of monthly payments, calculated as years × 12.

Total interest is estimated as the monthly payment multiplied by the number of payments, minus the amount borrowed: Total interest = monthly payment × n − P. The payment is rounded to cents before total interest is calculated. Actual lender figures may differ because of payment dates, rounding methods, fees, and contract terms.

Worked Example

Using the calculator’s defaults—$20,000 borrowed, 8% APR, and a five-year term:

1. Convert the APR to a monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Convert the term to months: 5 × 12 = 60.
3. Substitute into the payment formula: $20,000 × 0.0066667 ÷ [1 − (1 + 0.0066667)⁻⁶⁰] = $405.53 per month, rounded to cents.
4. Estimate total interest using that rounded payment: $405.53 × 60 − $20,000 = $4,331.80.

Assumptions

• The APR is fixed for the full term.
• Payments are equal, made monthly, and begin on schedule; the calculation does not model a specific first-payment date.
• Interest compounds monthly at APR ÷ 12.
• Fees, taxes, insurance, add-on products, and other charges are not included unless they are included in the loan amount entered.

How Cash-Out Auto Refinancing Works

With an auto refinance, a new loan pays off the remaining balance on the existing vehicle loan. In a cash-out transaction, the replacement loan is larger than the payoff amount, and the difference may be paid to the borrower after applicable charges. Whether that structure is available, and how much can be borrowed, depends on the lender’s terms and vehicle valuation. The calculator does not model those eligibility decisions.

For example, suppose a lender’s payoff figure is $14,000 and a proposed replacement loan is $17,000. Before fees or other adjustments, the difference is $3,000. That is not necessarily the cash received: charges added to the new loan, a payoff that changes before funding, or other contract details can reduce it. Get the actual payoff quote and a written breakdown of the proposed transaction.

Choose Inputs That Match the Offer

To make the estimate useful, use the amount, APR, and term for the proposed new loan—not the original loan’s starting balance or rate. Ask for the APR and term in writing and check whether the stated amount includes fees or other products. If the amount you want to borrow is unknown, calculate the payment for several amounts rather than assuming that the full difference between loan balances will be available as cash.

• Loan amount: The total principal being financed, including any charges you choose to finance.
• APR: The annual percentage rate supplied for the offer. Enter it as a number, such as 8 for 8%, not 0.08.
• Term: The full repayment period in years. A term with a fraction of a year is allowed within the calculator’s input range.

Compare the payment with the total interest and the term together. A smaller monthly payment can result from spreading repayment over more months; it does not by itself show that the loan costs less overall. This calculator assumes the entire principal is repaid through the stated monthly payments.

Costs, Trade-Offs, and Common Problems

Cash received is borrowed money, not a rebate or a reduction in the vehicle’s cost. Adding principal generally increases the amount that must be repaid. A longer term may reduce the scheduled payment but can increase total interest, depending on the amount and APR. If the vehicle’s value falls below the loan balance, selling or trading it may require addressing that difference; the calculator does not estimate vehicle value or equity.

Common input and comparison errors include:

• Entering the current payoff balance as the new loan amount when the proposed loan includes extra cash or financed charges.
• Comparing payments while ignoring different loan terms or total interest.
• Assuming the calculator’s estimate includes a lender’s fees or the exact payoff accrued through the funding date.
• Using the original loan’s APR instead of the proposed replacement loan’s APR.

Before relying on a figure, confirm the payoff amount, the new principal, the APR, payment count, any financed charges, and the amount of cash that would actually be disbursed. Use the lender’s disclosure for contract-specific totals.

Frequently Asked Questions

Can I refinance my car and get cash back?
Some lenders offer cash-out auto refinancing, but availability and the amount depend on the lender’s terms and the vehicle and loan details. This calculator estimates payments from an assumed loan amount; it does not predict approval or cash proceeds.

How do I calculate the cash I might receive?
Start with the proposed new loan amount, then subtract the current payoff amount and any charges or other amounts deducted at closing. Request a written transaction breakdown because the payoff can change and the calculator does not account for those items.

Does cash-out refinancing lower my monthly payment?
Not necessarily. The payment depends on the new principal, APR, and term. Borrowing more can raise it, while a longer term can lower the scheduled payment but may increase total interest.

Is cash-out refinancing the same as a home-equity loan?
No. Cash-out auto refinancing replaces a loan secured by a vehicle under the lender’s contract, while home-equity borrowing involves a home. Their collateral, terms, and risks differ; this calculator covers only fixed-rate auto-loan payment arithmetic.

Does the calculator tell me whether I qualify?
No. It performs a payment and interest estimate from the figures entered. The lender determines eligibility, available loan amount, vehicle value, and final contract terms.

This result is an estimate; the lender’s disclosure gives the exact figures.

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in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2