Enter Current loan balance ($), Current interest rate (%) and Current remaining term (years) and the remaining scenario settings to review monthly savings with this tool. Lower payments can come from a lower rate or a longer remaining term.
Result = Financial inputs processed using the applicable rate, payment, compounding or cash-flow relationship shown by this calculator.The calculation links Current loan balance ($), Current interest rate (%) and Current remaining term (years) to monthly savings. Lower payments can come from a lower rate or a longer remaining term. A simple break-even period does not alone describe lifetime financing cost.
Enter Current loan balance ($), Current interest rate (%) and Current remaining term (years) and the remaining scenario settings to review monthly savings with this tool. Lower payments can come from a lower rate or a longer remaining term.
Compare an existing loan with a proposed replacement after allowing for refinancing costs. Ask whether the monthly savings recover the upfront cost within the expected holding period.
Lower payments can come from a lower rate or a longer remaining term. A simple break-even period does not alone describe lifetime financing cost.
Prepare Current loan balance ($), Current interest rate (%), Current remaining term (years), New interest rate (%), New loan term (years) and Closing costs ($). Use the current remaining balance and remaining term, then compare the new loan cost and the expected time before selling or refinancing again.
Lower payments can come from a lower rate or a longer remaining term. A simple break-even period does not alone describe lifetime financing cost. Closing costs, points, financed fees, rate changes and how long you retain the loan can change the benefit. A new long term may increase total interest.
Use the full settings in the worked-example table. They produce Monthly Savings: $347. Compare the method and units as well as the displayed number.
The displayed relationship is Result = Financial inputs processed using the applicable rate, payment, compounding or cash-flow relationship shown by this calculator. Use the current remaining balance and remaining term, then compare the new loan cost and the expected time before selling or refinancing again.
Closing costs, points, financed fees, rate changes and how long you retain the loan can change the benefit. A new long term may increase total interest. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked refinance calculator example. Set Current loan balance ($) = 250000; Current interest rate (%) = 7.0; Current remaining term (years) = 25; New interest rate (%) = 5.5; New loan term (years) = 30 years; Closing costs ($) = 5000. The corresponding output is Monthly Savings: $347. Lower payments can come from a lower rate or a longer remaining term.
Compare an existing loan with a proposed replacement after allowing for refinancing costs. Ask whether the monthly savings recover the upfront cost within the expected holding period.
Use the current remaining balance and remaining term, then compare the new loan cost and the expected time before selling or refinancing again.
| Field | Example value | Entry check |
|---|---|---|
| Current loan balance ($) | 250000 | Check whether this amount is one-time, monthly or annual before entering it. |
| Current interest rate (%) | 7.0 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Current remaining term (years) | 25 | Use the period unit in the field label; months and years are not interchangeable. |
| New interest rate (%) | 5.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| New loan term (years) | 30 years | Use the period unit in the field label; months and years are not interchangeable. |
| Closing costs ($) | 5000 | Check whether this amount is one-time, monthly or annual before entering it. |
Relationship used for this example: Result = Financial inputs processed using the applicable rate, payment, compounding or cash-flow relationship shown by this calculator.
Lower payments can come from a lower rate or a longer remaining term. A simple break-even period does not alone describe lifetime financing cost.
| Output | Displayed result |
|---|---|
| Monthly Savings | $347 |
With these settings, monthly savings is $347. Use the same units and calculation mode when reproducing this example.
Lower payments can come from a lower rate or a longer remaining term. A simple break-even period does not alone describe lifetime financing cost. Closing costs, points, financed fees, rate changes and how long you retain the loan can change the benefit. A new long term may increase total interest.
Replace the illustrative current loan balance ($) value (250000) with your own value, then complete the other inputs for the same scenario. Use the current remaining balance and remaining term, then compare the new loan cost and the expected time before selling or refinancing again.