Savings results
The calculator compares your current loan plan with a proposed refinance or repayment strategy.
Calculator inputs
Use the fields below to compare your current loan with a proposed loan strategy. Results appear above this form after submission.
Example data table
| Scenario | Balance | APR | Term | Estimated payment | Extra monthly | Fees |
|---|---|---|---|---|---|---|
| Current loan | $25,000.00 | 14.50% | 60 months | $586.86 | $75.00 | $0.00 |
| Proposed refinance | $25,650.00 | 10.25% | 48 months | $650.56 | $50.00 | $650.00 rolled in |
| Aggressive payoff option | $24,000.00 | 10.25% | 36 months | $777.26 | $150.00 | $450.00 paid upfront |
Formula used
Monthly rate:
r = APR / 12
Standard payment:
M = P × [r(1 + r)n] / [(1 + r)n − 1]
Zero-rate payment:
M = P / n
Monthly interest:
Interestm = Balancem-1 × r
Principal paid:
Principalm = Paymentm + Extram − Interestm
Net savings:
Net savings = Current total cost − Proposed total cost
Break-even month is the first month where the proposed cumulative cost becomes lower than the current cumulative cost.
How to use this calculator
- Enter your current remaining balance, APR, and months left on the loan.
- Add your present payment or leave it blank for an automatic calculation.
- Enter the proposed APR, new term, refinance fees, and any new cash payment.
- Choose whether fees are rolled into the new balance or paid upfront.
- Press calculate to view payment differences, payoff timing, total savings, and the balance comparison graph.
FAQs
1. What does this calculator compare?
It compares your current repayment path with a proposed refinance or revised payoff plan. You can test rate changes, new terms, fees, lump sums, and extra monthly payments together.
2. Should I include refinancing fees?
Yes. Fees can materially change real savings. This page lets you either finance them into the new balance or treat them as upfront cash paid at closing.
3. Why can a lower rate still raise my payment?
A shorter proposed term often increases the monthly payment even when the APR drops. Higher payments can still reduce total interest and shorten the payoff date.
4. What is the break-even month?
It is the first month when the proposed scenario’s cumulative cost becomes lower than the current scenario’s cumulative cost. That helps you judge whether fees are recovered quickly enough.
5. Do extra payments matter much?
Usually yes. Extra payments go directly toward principal after interest is covered, which can shorten the loan and reduce total interest materially over time.
6. Can I leave payment fields blank?
Yes. The calculator will estimate the standard amortized payment from balance, APR, and term. Enter a custom payment only when you want to model a different plan.
7. Does this handle zero-interest loans?
Yes. When the APR is zero, the tool uses a simple principal divided by months formula instead of the standard amortization equation.
8. Is this a lending offer or financial advice?
No. It is an educational estimate. Actual lender terms, insurance products, payment timing, and fees may differ, so confirm numbers before making a borrowing decision.