You can use this loan calculator to figure out how much money you might be able to save by refinancing a personal loan. The calculator uses information about an existing loan, along with the refinancing option, to determine the total cost of each loan. These two values are then used to calculate the dollars saved by refinancing.
Calculator Definitions
The variables used in our online calculator are defined in detail below, including how to interpret the results.
Original Loan Amount ($)
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The original loan amount is the net amount financed with the lending institution. This value is used as the basis for all subsequent original monthly loan payment calculations.
Original Annual Interest Rate (%)
This is the annual interest rate on the original personal loan. This is not the APR, which takes into account other costs associated with the loan.
Original Term of the Loan (Years)
This is the original term or length of the personal loan, stated in years. The most common terms for personal loans range from 3 to 10 years.
Months Remaining on Original Loan (Months)
This is the months you have remaining on your original personal loan.
New Loan Amount ($)
This is the new loan amount you are considering refinancing. To make this comparison more accurate, your new loan amount should be equal to the remaining balance on the original loan.
New Annual Interest Rate (%)
This is the new annual interest rate for the loan you are considering refinancing. This is not the APR on the loan, which takes into account other costs associated with the loan.
New Term of Loan (Months)
This is the new term for the refinanced loan. Once again, to make a more accurate comparison, the new term should be roughly equal to the months remaining on the original loan.
Remaining Balance on Original Loan ($)
This is the calculated remaining balance, or principal, on the original loan.
Monthly Payment ($ / Month)
This is the monthly payment for both the original loan and the refinanced loan. This is the payment necessary to repay the original loan over its lifetime.
Savings on Monthly Payment ($ / Month)
This is the calculated difference between the monthly loan payments for the original loan versus the refinancing arrangement.
Remaining Cost of Original Loan ($)
This is simply the remaining number of payments times the monthly payment amount on the original loan.
Total Cost of Refinanced Loan ($)
This is the total of all your payments on the refinanced loan. This value is calculated by taking the monthly payment times the number of months this loan will be outstanding.
Savings with Refinancing ($)
This is how much money you can save by refinancing an existing personal loan. Keep in mind that application fees, or other costs, may reduce or even eliminate these savings.
Refinancing a Loan Calculator
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.
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