Loan Refinance Calculator

Loan Refinance Calculator

Refinancing replaces your existing loan with a new one — ideally at a lower rate, a term that suits you better, or both. This calculator compares your current loan against a new one so you can see at a glance whether refinancing would lower your monthly payment, reduce what you pay overall, or some trade-off of the two.

Enter what you owe and pay today, plus the rate and term you have been offered on a new loan. We work out how many payments you have left on your current loan, then compare it against the new loan over its full term — showing the difference in monthly payment, interest, and total cost.

Assumptions & Limitations

This calculator assumes you refinance the full remaining balanceof your current loan into a new loan with fixed, equal monthly payments and interest compounded monthly — the norm for most personal loans, auto loans and mortgages in the United States. It does not include any new origination fees, closing costs, or prepayment penalties on either loan; real refinance offers may carry these, so factor them in separately when weighing a deal. The remaining term on your current loan is estimated from your balance, payment and APR, and rounded to the nearest whole month. If your current monthly payment does not cover the monthly interest, the balance would never be repaid and the loans cannot be compared.

Calculator Inputs

You only need to enter what you already know about each loan.

• Remaining balance:How much you still owe on your current loan today — not the original amount you borrowed.
• Monthly payment: The fixed amount you currently pay each month. We use this, with the balance and APR, to work out how many payments you have left.
• Current APR:Your current loan's annual percentage rate — the yearly cost of the loan including fees. If you only know the interest rate, that is a close substitute for a fee-free loan.
• New loan term: The length of the new loan you are considering, in years or months. A shorter term usually means a higher monthly payment but less interest overall; a longer term does the reverse.
• New APR: The APR you have been offered, or expect to be offered, on the new loan. A lower APR is the main lever that makes refinancing pay off.

Understanding Your Results

The summary at the top tells you how your monthly payment and your total lifetime cost change. Beneath it, a table compares the two loans side by side:

• Loan amount: The balance being repaid. Since you refinance what you owe, this is the same on both loans.
• Loan term: The number of months left on the current loan versus the full term of the new one.
• Monthly payment: What you pay each month under each loan.
• Interest rate: The APR of each loan.
• Total interest: The interest you pay over the remaining life of each loan.
• Total payments:Everything you have left to pay — the balance plus all remaining interest.

Is Refinancing Worth It?

Because the balance stays the same, a refinance comes down to two questions: does your monthly payment go down, and does your total costgo down? That gives four situations — and a lower monthly payment is not automatically a win:

• Lower payment and lower total cost:The straightforward win — you pay less each month and less over the life of the loan.
• Higher payment but lower total cost: Often the best financial move, usually driven by a lower rate or a shorter term. You pay more each month but save meaningfully overall, so it is worth it if the higher payment comfortably fits your budget.
• Lower payment but higher total cost:A trade-off, usually from stretching the term out. It can ease a tight budget — and you can always overpay in months you have spare cash — but you pay more in the long run, so go in with eyes open.
• Higher payment and higher total cost:No upside — the new terms cost you more on both fronts.

The verdict shown with your results highlights which of these situations applies to the numbers you entered.