Refinancing Calculator

Compare your current loan with a refinancing offer, and see how much you could save per month and in total by switching to a lower rate.

Monthly savings
$101
By refinancing
Payment today
$608
Payment after refinancing
$507
Total savings over the term
$6,060
Time until the fee is paid back

How to use the refinancing calculator

  1. Enter the remaining loan balance — what you still owe.
  2. Enter your current interest rate and the rate you're offered on the new loan.
  3. Enter the remaining term — the calculator shows how much you save per month and in total.

How the savings are calculated

The calculator computes the monthly payment with the amortization formula for both the old and the new loan, using the same loan amount and term, and compares them:

Payment = L × r ÷ (1 − (1 + r)−n)
where L is the loan amount, r is the monthly interest rate, and n is the number of months.

Refinancing is often used to consolidate expensive consumer loans and credit card debt into a single loan with a lower rate, which can significantly lower your monthly expenses.

If you enter an expected fee for switching (an origination fee on the new loan and/or a payoff fee on the old one), the calculator also shows how many months it takes before the monthly savings have covered the fee — the "break-even" point for the refinancing.

Note: The fee field is an estimate you fill in yourself — actual fees vary between lenders and should be checked in the specific offer before you switch.

Frequently asked questions

When does it pay off to refinance?

It's usually worthwhile when the new rate is noticeably lower than the old one, and the remaining term is long enough that the savings exceed any fees involved in switching.

Does refinancing affect my credit score?

A credit check when applying for refinancing can cause a small, temporary dip in your credit score, but this usually normalizes quickly.