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Loan Refinance Calculator

Current loan
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Yr
%
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Refinanced loan
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%
Yr

Your Results

Refinancing your $150,000.00 balance at 4% over 20 years lowers your payment by $433.08, to $908.97 a month, and the loan ends 7 years and 5 months later. After $1,500.00 of fees, it costs you $17,342.28 more overall. The lower payment covers the fees after 4 months. The lower payment feels like a saving, but you pay for longer, so the total is higher.

$17,342.28
Net Cost After Fees
$908.97
New Payment
-$433.08
Monthly Change
4 months
Fee Payback
Nov 2046
New Payoff Date

Current loan and refinanced

From today onCurrentRefinanced
Monthly Payment$1,342.05$1,342$908.97$909
Payments Left151240
Total Paid$202,310.69$202,311$218,152.97$218,153
Total Interest$52,310.69$52,311$68,152.97$68,153
Fees$0.00$0$1,500.00$1,500
Total Cost$202,310.69$202,311$219,652.97$219,653
Payoff DateJun 2039Nov 2046

Dates count from this month. Pay extra instead: Mortgage Payoff. See the new loan on its own: Amortization.

Does refinancing pay off?

Above the dashed line, you've paid less so far than on your current loan, counting cash paid and fees. It can fall again later, once the current loan would have ended and the new one keeps running.

Balance with and without refinancing

YearPaymentInterestPrincipalExtraLoan Balance
2026$908.97$909$500.00$500$408.97$409$0.00$0$149,591.03$149,591
2027$10,907.64$10,908$5,892.37$5,892$5,015.27$5,015$0.00$0$144,575.76$144,576
2028$10,907.64$10,908$5,688.04$5,688$5,219.60$5,220$0.00$0$139,356.16$139,356
2029$10,907.64$10,908$5,475.37$5,475$5,432.27$5,432$0.00$0$133,923.89$133,924
2030$10,907.64$10,908$5,254.03$5,254$5,653.61$5,654$0.00$0$128,270.28$128,270
2031$10,907.64$10,908$5,023.72$5,024$5,883.92$5,884$0.00$0$122,386.36$122,386
2032$10,907.64$10,908$4,783.99$4,784$6,123.65$6,124$0.00$0$116,262.71$116,263
2033$10,907.64$10,908$4,534.50$4,535$6,373.14$6,373$0.00$0$109,889.57$109,890
2034$10,907.64$10,908$4,274.86$4,275$6,632.78$6,633$0.00$0$103,256.79$103,257
2035$10,907.64$10,908$4,004.63$4,005$6,903.01$6,903$0.00$0$96,353.78$96,354
2036$10,907.64$10,908$3,723.39$3,723$7,184.25$7,184$0.00$0$89,169.53$89,170
2037$10,907.64$10,908$3,430.67$3,431$7,476.97$7,477$0.00$0$81,692.56$81,693
2038$10,907.64$10,908$3,126.08$3,126$7,781.56$7,782$0.00$0$73,911.00$73,911
2039$10,907.64$10,908$2,809.03$2,809$8,098.61$8,099$0.00$0$65,812.39$65,812
2040$10,907.64$10,908$2,479.08$2,479$8,428.56$8,429$0.00$0$57,383.83$57,384
2041$10,907.64$10,908$2,135.70$2,136$8,771.94$8,772$0.00$0$48,611.89$48,612
2042$10,907.64$10,908$1,778.33$1,778$9,129.31$9,129$0.00$0$39,482.58$39,483
2043$10,907.64$10,908$1,406.38$1,406$9,501.26$9,501$0.00$0$29,981.32$29,981
2044$10,907.64$10,908$1,019.27$1,019$9,888.37$9,888$0.00$0$20,092.95$20,093
2045$10,907.64$10,908$616.41$616$10,291.23$10,291$0.00$0$9,801.72$9,802
2046$9,998.84$9,999$197.12$197$9,801.72$9,802$0.00$0$0.00$0
Total$218,152.97$218,153$68,152.97$68,153$150,000.00$150,000$0.00$0–

What Is Refinancing?

Refinancing means taking out a new loan to pay off an existing one, usually to get a lower rate, a lower payment or a different term. It's common with mortgages, and also used for car, student and personal loans. This calculator works for any loan with a fixed rate and equal monthly payments, but not for variable-rate or interest-only loans.

A lower payment isn't always a saving

Two things decide the monthly payment: the rate and the time left. Stretching the loan over more years lowers the payment even when the total you pay goes up. That's why this calculator shows both how fast the fees pay back and what you save or lose overall. On its default numbers, the fees are covered in 4 months, but the new loan still costs $17,342.28 more in the end.

Common reasons to refinance

  • A lower rate: rates have fallen, or your credit has improved.
  • A lower payment: more room in your budget, usually by paying for longer.
  • A shorter loan: a higher payment, but less interest overall.
  • A fixed rate: moving away from a rate that can change.
  • Cash out or combining debts: borrowing against your home's value, or merging loans. This calculator compares the same balance, so it doesn't cover these.

Costs of refinancing

Enter all the costs of the new loan together as Refinancing Fees. The calculator treats them as paid up front. For a mortgage, they can include application and origination fees or points, an appraisal, a title search, document preparation, recording, and sometimes a survey, inspection or flood certification. Other loans usually cost less to refinance, sometimes nothing. Your lender can tell you what applies to your loan.

Which calculator should I use?

How to Calculate a Loan Refinance

Both payments use the same formula. The current one uses your original loan and term, and the new one uses your balance and new term:

PMT=PV× i(1+i)n (1+i)n−1
  • PV: the loan amount.
  • i: the monthly interest rate as a decimal (yearly rate ÷ 12).
  • n: the number of monthly payments.

At 0% interest, the payment is simply PV ÷ n. Then, with the fees paid up front:

Net savings=Current total−New total−Fees Fee payback=FeesMonthly saving

Example

A $250,000, 30-year loan at 5% with $150,000 left, refinanced at 4% over 20 years with $1,500 of fees:

  • Current payment: $1,342.05, with 151 payments left, for $202,310.69 in total.
  • New payment: $908.97 for 240 payments, for $218,152.97 in total.
  • Fee payback: $1,500 ÷ $433.08 = 3.46, so month 4.
  • Net result: $202,310.69 − $218,152.97 − $1,500 = -$17,342.28, a net cost.

How to Use the Loan Refinance Calculator

"I have $150,000 left on my 5% loan. If I refinance at 4% over 20 years with $1,500 of fees, do I come out ahead?" This calculator answers that.

Let's enter the numbers for this example in each box. They are already filled in when the calculator opens, so you can follow along and then change any box to match your own loan.

  • Original Loan Amount: Enter 250,000, which is what you first borrowed. It must be less than $1 billion.
  • Original Term: Enter 30, which is the loan's full length in years. It must be a whole number from 1 to 50.
  • Current Interest Rate: Enter 5, which is your loan's yearly rate in percent. It must be from 0 to 99.99.
  • Current Balance: Enter 150,000, which is what you still owe today. It can't be more than the original loan.
  • Monthly Payment: There's nothing to enter. This greyed box shows the payment worked out from the three boxes above.
  • Refinancing Fees: Enter 1,500, which is the total cost of getting the new loan. Enter 0 if there are none.
  • New Interest Rate: Enter 4, which is the new loan's yearly rate in percent.
  • New Loan Term: Enter 20, which is the new loan's length in years.

Calculate and Reset

Click Calculate to see your results. If a box has a problem, such as a balance above the original loan, a message pops up under that box instead. With the default numbers you get:

  • Your Results: a short summary in words, which says so when a lower payment still costs more overall.
  • Net Cost After Fees: the headline number, $17,342.28. When refinancing comes out ahead, it reads Net Savings After Fees.
  • New Payment, Monthly Change, Fee Payback and New Payoff Date: $908.97, -$433.08, 4 months, and a date counted from this month.
  • Current loan and refinanced: the two side by side. Links open the Mortgage Payoff and Amortization calculators with your numbers filled in.
  • Does refinancing pay off?: your running gain or loss, in cash paid, starting at minus the fees.
  • Balance chart: both balances falling over time.
  • Payment schedule: every payment for either loan. Download Excel saves both with the formulas, so you can change a number and see them update.
  • Share Results: a link that opens this calculator with your numbers filled in. Copy it, or share it on Facebook or X.

Amounts of $1 million or more are shortened, for example $1.25M. Click Reset to put every box back to its default and show the default results again.

Video: How to Use the Loan Refinance Calculator