Enter refinance assumptions
The page stays single-column, while the calculator fields adapt to 3, 2, or 1 columns by screen size.
Example data table
| Sample | Current Balance | Current APR | Remaining Months | New APR | New Term | Fees | Monthly Savings | Lifetime Savings | Break-even |
|---|---|---|---|---|---|---|---|---|---|
| Example A | $12,000.00 | 15.00% | 36 | 7.50% | 36 | $295.00 financed | $33.53 | $1,207.19 | 8.8 months |
Example A assumes a 1.00% origination fee, $75 closing costs, and a $100 prepayment penalty with no cash-out and no monthly fees.
Formula used
1) Monthly rate
Monthly Rate = APR / 12 / 100
2) Standard amortized payment
Payment = P × r / (1 − (1 + r)−n)
Where P is principal, r is monthly rate, and n is the number of months.
3) Zero-interest payment
Payment = Principal / Months
4) Monthly interest and principal split
Interest for month t = Prior Balance × Monthly Rate
Principal for month t = Payment − Interest
5) Refinance principal
Base Refinance Amount = Current Balance + Cash-Out
Origination Fee = Base Refinance Amount × Origination Fee %
New Principal = Base Amount + Financed Costs, if fees are financed.
6) Break-even
Break-even Months = Transaction Costs / Monthly Savings
If monthly savings are zero or negative, there is no monthly break-even.
7) Lifetime savings
Lifetime Savings = Current Future Outflow − Refinance Future Outflow
How to use this calculator
- Enter the balance, APR, and remaining months for your current personal loan.
- Leave the current payment override blank unless your real payment differs from the standard amortized payment.
- Add any current monthly servicing fee if your lender charges one.
- Enter the proposed refinance APR and new loan term in months.
- Add origination fees, flat costs, and any prepayment penalty from the old loan.
- Choose whether those refinance costs are financed into the new loan or paid today in cash.
- Add optional cash-out and any extra monthly payment you plan to make after refinancing.
- Press the calculate button to see monthly savings, payoff timing, total cost, break-even, and a recommendation summary above the form.
FAQs
1) What does break-even mean here?
Break-even shows how many months of monthly savings are needed to recover refinance transaction costs. If savings are negative, the refinance does not recover costs through monthly payment relief.
2) Are lender fees included in the result?
Yes. Origination charges, flat closing costs, and prepayment penalties are included. You can also choose whether those costs are financed into the new balance or paid upfront.
3) Should I refinance only for a lower monthly payment?
Not always. A lower payment can still increase total cost if the new term is much longer or the fees are too high. Review both monthly savings and lifetime savings.
4) What happens if I take cash out?
Cash-out increases the refinance amount and can make total future payments look higher. Use the cash-out-adjusted benefit to judge the refinance apart from the extra borrowed cash.
5) Why can lifetime savings be negative while payment falls?
That usually means the lower payment comes from stretching the loan term or adding fees. The refinance helps monthly cash flow, but it may cost more over time.
6) Does a prepayment penalty matter much?
Yes. Even a modest penalty can delay break-even and reduce total savings. Include it whenever your current lender charges one for early payoff.
7) Can extra monthly payments change the refinance outcome?
Yes. Extra payments shorten payoff time and reduce total interest. They can improve long-term savings even when monthly outflow becomes higher.
8) Is APR enough to make the decision?
No. APR matters, but you should also review fees, term length, cash-out, monthly charges, and how long you expect to keep the loan before judging the refinance.