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Loan refinancing calculator

Is it worth replacing your existing loan with a new one at a lower rate? This calculator sets two full repayment plans side by side — carry on with the old loan, or refinance the remaining debt — and shows the saving, the monthly payment difference and the break-even point for the switching costs. Everything runs in your browser; nothing is stored.

All defaults are example assumptions. Any early-repayment charge is entered by you as part of the switching costs — it is not calculated. The calculation runs in your browser; nothing is stored.

Existing loan

New loan

What your result means

The cards give the saving over the term (after switching costs), the monthly payment difference, the break-even point and the new monthly payment. A positive saving means refinancing costs less overall on your figures; the break-even tells you how long the monthly saving takes to cover the switching costs. The table compares the monthly payment, total cost and interest of both loans. It is a comparison on your own terms, not a provider recommendation.

How this calculator works

For the old loan and the new loan the calculator works out an annuity payment from the remaining debt, the interest rate and the term (monthly interest). The total cost is payment × term; the interest within it is total cost minus the remaining debt. For the new loan the one-off switching costs are added on top.

The saving is the total cost of the old loan minus the total cost of the new loan including switching costs. The break-even shows after how many months the monthly payment saving has recouped the switching costs. An early-repayment charge is deliberately not calculated — it is a legally complex, case-by-case figure and only enters as part of the switching costs you type in. No provider data is used and no loans are arranged.

Formula and variables

Total cost=Monthly payment × Term
New incl. switching=New total cost + Switching costs
Saving=Old total cost − New incl. switching
Remaining debt
current balance of the existing loan
Monthly payment
annuity from remaining debt, rate and term
Switching costs
one-off costs incl. any early-repayment charge (your input)

Worked examples

Example: refinancing €30,000 from 7.5% to 4.9%

Example inputs
Remaining debt€30,000.00
Old rate / remaining term7.5% / 60 months
New rate / term4.9% / 60 months
Switching costs€350.00
Example results
Saving over the term€1,832.49
Monthly payment difference€36.37
Break-even10 months
New monthly payment€564.76

Refinancing €30,000.00 from 7.5% to 4.9% (both over 60 months) brings the monthly payment down to €564.76, about €36.37 less a month. Over the term that saves €1,832.49 after the €350.00 switching costs, which the monthly saving recoups in about 10 months. All figures are example assumptions.

Assumptions

  • Constant interest rates over each term.
  • Switching costs are fully quantified by you (incl. any early-repayment charge).
  • Regular, on-time payments.

Limitations of this calculator

  • No statement about real offers, terms or creditworthiness.
  • The early-repayment charge is not calculated, only taken as an input.
  • No loan arranging and no provider recommendation.

Common misconceptions

  • Comparing rates, not totals: A lower rate over a longer term can still cost more overall; the total cost and the break-even are what matter.
  • Forgetting the switching costs: Fees and any early-repayment charge can outweigh the interest saving; enter them so the saving is realistic.
  • Ignoring a longer new term: Stretching the debt over more months lowers the monthly payment but can raise the total interest paid.
  • Expecting the penalty to be worked out: The early-repayment charge is not calculated here; it is a case-by-case figure you include in the switching costs.

Frequently asked questions

Is the early-repayment charge calculated?

No. It is legally complex and depends on the case. If one applies, enter it as part of the switching costs — the calculator then includes it in the saving, but does not work it out for you.

Does it recommend a provider?

No. It works only with the terms you enter and arranges no loans. Real offers depend on creditworthiness and the market and can differ.

Why can a lower rate still cost more?

If the new loan runs for longer, the smaller monthly payment can add up to more interest overall, and the switching costs count too. That is why the total cost and the break-even matter, not the rate alone.

Is anything about my loans saved or shared?

No. Everything runs locally in your browser; your loan figures are not stored and never leave your device.

Sources and further reading

Official and independent sources on this topic. The links open each website in a new tab; no content is loaded from them into this page.

  • Should I refinance?U.S. Consumer Financial Protection BureauConsumer guidance on weighing a refinance: the break-even point is where monthly savings recoup the upfront costs.

Spotted an error in the calculation or the text?

If you notice something that is wrong or unclear: let us know via the contact page. We review every report.

Last reviewed: 28/07/2026 · All calculations run in your browser – inputs are not stored. ·How we check our calculators