Dave Ramsey Mortgage Payoff Calculator

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Personal Loan Refinance Savings Calculator

Current Loan Details

New Loan Details

Your Potential Savings

Monthly Payment Reduction
$0.00
Total Interest Savings
$0.00
function calculateRefi() { var currentBal = parseFloat(document.getElementById('currentBalance').value); var currentRate = parseFloat(document.getElementById('currentRate').value) / 100 / 12; var currentTerm = parseFloat(document.getElementById('currentTerm').value); var newRate = parseFloat(document.getElementById('newRate').value) / 100 / 12; var newTerm = parseFloat(document.getElementById('newTerm').value); var fee = parseFloat(document.getElementById('originationFee').value) || 0; if (isNaN(currentBal) || isNaN(currentRate) || isNaN(currentTerm) || isNaN(newRate) || isNaN(newTerm)) { alert("Please enter valid numeric values for all required fields."); return; } // Monthly Payment Calculation Formula: P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var currentMonthly = (currentBal * currentRate) / (1 – Math.pow(1 + currentRate, -currentTerm)); var newMonthly = (currentBal * newRate) / (1 – Math.pow(1 + newRate, -newTerm)); var totalOldCost = currentMonthly * currentTerm; var totalNewCost = (newMonthly * newTerm) + fee; var monthlySave = currentMonthly – newMonthly; var totalSave = totalOldCost – totalNewCost; document.getElementById('results-box').style.display = 'block'; document.getElementById('monthlySavings').innerText = '$' + monthlySave.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalSavings').innerText = '$' + totalSave.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); var summary = "By refinancing, your monthly payment would change from $" + currentMonthly.toFixed(2) + " to $" + newMonthly.toFixed(2) + ". "; if (totalSave > 0) { summary += "Over the life of the loan, you could save a total of $" + totalSave.toFixed(2) + " in interest and fees."; } else { summary += "In this scenario, refinancing may cost you $" + Math.abs(totalSave).toFixed(2) + " more in total compared to your current loan."; } document.getElementById('summaryText').innerHTML = summary; }

How to Use the Personal Loan Refinance Calculator

Refinancing a personal loan can be a powerful financial move to lower your monthly obligations or reduce the total interest you pay over time. This calculator helps you compare your current loan terms against a potential new loan to see exactly where your money goes.

Key Metrics Explained

  • Remaining Balance: The total amount you currently owe on your existing loan. You can find this on your latest billing statement.
  • Months Remaining: The number of payments you have left on your current loan.
  • Origination Fee: Many lenders charge a percentage (1% to 8%) of the loan amount to process the new loan. It is important to include this as it impacts your total savings.
  • Total Interest Savings: This is the net difference between what you would pay on your old loan versus the new loan, including any upfront fees.

Example Scenario:

Imagine you have a $15,000 balance on a personal loan with an 18.5% APR and 36 months left. Your payment is approximately $545 per month. If you qualify for a refinance at 10.5% APR for the same 36-month term, your new payment drops to $487. You save $58 per month and a staggering $2,088 in total interest over the three years.

When Should You Refinance Your Personal Loan?

Refinancing isn't always the right choice. Consider these factors before signing a new loan agreement:

1. Your Credit Score Has Improved

If you've spent the last year paying down debt and ensuring your credit report is clean, your score may have jumped. A higher credit score usually qualifies you for significantly lower interest rates than you had previously.

2. Market Interest Rates Have Dropped

Economic shifts can lead to a general decrease in interest rates across the lending industry. If rates are lower now than when you first took out your loan, you could benefit from the market trend.

3. You Need a Lower Monthly Payment

Even if you don't save money on total interest (for example, if you extend the term of the loan), refinancing can provide immediate breathing room in your monthly budget by lowering the required monthly payment.

Beware of Prepayment Penalties

Before using this calculator's results to make a decision, check if your current lender charges a prepayment penalty. While rare for modern personal loans, some lenders charge a fee for paying off the loan early. If such a fee exists, add it to the "Origination Fee" field in the calculator to ensure an accurate comparison.

The Impact of Loan Terms

Note that if you choose a longer term for your new loan (e.g., moving from 24 months remaining to a new 60-month loan), your monthly payment will drop significantly, but you may actually end up paying more in total interest over the life of the loan. Always look at the Total Interest Savings figure to understand the long-term cost.

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