Refinance Savings Calculator
Refinance Savings is evaluated from Current Loan Balance, Current Interest Rate and Remaining Term. The calculation reports Current Monthly Payment, New Monthly Payment and Monthly Savings.
Results
About the Refinance Savings Calculator
The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
Current Monthly Payment = Balance x r₁ x (1+r₁)^n₁ / [(1+r₁)^n₁ - 1]
New Monthly Payment = Balance x r₂ x (1+r₂)^n₂ / [(1+r₂)^n₂ - 1]
Monthly Savings = Current Payment - New Payment
Lifetime Savings = (Current Payment x n₁) - (New Payment x n₂) - Fees
Break-Even Months = Fees / Monthly Savings
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: Current Monthly Payment = Balance x r₁ x (1+r₁)^n₁ / [(1+r₁)^n₁ - 1] New Monthly Payment = Balance x r₂ x (1+r₂)^n₂ / [(1+r₂)^n₂ - 1] Monthly Savings = Current Payment - New Payment Lifetime Savings = (Current Payment x n₁) - (New Payment x n₂) - Fees Break-Even Months = Fees / Monthly Savings Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: Auto Loan Refinance After Credit Score Improvement
Inputs
With Current Loan Balance = 18,000, Current Interest Rate = 12.5, Remaining Term = 48 and New Interest Rate = 6.9 as the stated inputs, the result is Current Monthly Payment = $478.44, New Monthly Payment = $430.2 and Monthly Savings = $48.24. Each value corresponds to the declared output fields.
Example 2: Student Loan Refinance — Private Lender
Inputs
With Current Loan Balance = 42,000, Current Interest Rate = 6.53, Remaining Term = 84 and New Interest Rate = 5.25 as the stated inputs, the result is Current Monthly Payment = $624.29, New Monthly Payment = $598.57 and Monthly Savings = $25.72. Each value corresponds to the declared output fields.
Example 3: Personal Loan — Shorter Term Refi
Inputs
With Current Loan Balance = 15,000, Current Interest Rate = 14.99, Remaining Term = 60 and New Interest Rate = 9.5 as the stated inputs, the result is Current Monthly Payment = $356.77, New Monthly Payment = $376.85 and Monthly Savings = -$20.08. Each value corresponds to the declared output fields.
Example 4: High-Rate to Low-Rate — Large Balance
Inputs
With Current Loan Balance = 35,000, Current Interest Rate = 18.99, Remaining Term = 60 and New Interest Rate = 10.5 as the stated inputs, the result is Current Monthly Payment = $907.73, New Monthly Payment = $752.29 and Monthly Savings = $155.44. Each value corresponds to the declared output fields.
Common Use Cases
- Calculate monthly savings from refinancing a student loan
- Find the break-even point for refinancing an auto loan
- Compare current vs refinanced auto or personal loan total cost