{"id":250,"date":"2025-05-09T15:42:59","date_gmt":"2025-05-09T12:42:59","guid":{"rendered":"http:\/\/wpcalc.com\/?p=250"},"modified":"2025-05-11T11:17:01","modified_gmt":"2025-05-11T08:17:01","slug":"refinance-interest-savings","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/refinance-interest-savings\/","title":{"rendered":"Refinance Interest Savings Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 class=\"text-lg font-display font-bold\">Calculate Your Refinancing Interest Savings<\/h2><\/div><div class=\"relative group inline-block\">\n  <button class=\"favorite\" id=\"favorite\" data-favorite-id=\"250\" data-favorite-title=\"Refinance Interest Saving\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/refinance-interest-savings\/\" data-favorite-excerpt=\"This calculator helps you calculate the savings on interest after refinancing your loan. By comparing the old and new loan terms, it shows how much you can save by refinancing your loan with a lower interest rate or a modified term.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-rate-up\">\n    <span class=\"icon icon-shape-star-empty\"><\/span>\n  <\/button>\n  <div class=\"absolute right-full -translate-y-1\/2 top-1\/2 mr-2 w-max max-w-xs px-3 py-2 bg-gray-800 text-white text-xs rounded shadow-lg opacity-0 group-hover:opacity-100 transition-opacity duration-200 z-10 pointer-events-none\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/refinance-interest-savings\/\" method=\"POST\" class=\"calculator\" id=\"calculator-250\" data-post=\"250\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">Current Loan Amount<\/label><div class=\"term\">P<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"current_loan_amount\" id=\"field-1\" min=\"0\" step=\"any\" value=\"100000\"\/><div class=\"unit\">$<\/div><small>Enter the current loan amount<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">Current Interest Rate (%)<\/label><div class=\"term\">r_old<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"current_interest_rate_\" id=\"field-2\" min=\"0\" step=\"0.1\" value=\"6\"\/><div class=\"unit\">%<\/div><small>Enter the current interest rate on your loan<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Current Loan Term (Months)<\/label><div class=\"term\">n_old<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"current_loan_term_months\" id=\"field-3\" min=\"1\" step=\"any\" value=\"240\"\/><small>Enter the current loan term in months<\/small><\/div><div class=\"field has-term\" id=\"input-4\"><label for=\"field-4\">New Interest Rate (%)<\/label><div class=\"term\">r_new<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"new_interest_rate_\" id=\"field-4\" min=\"0\" step=\"0.1\" value=\"4\"\/><div class=\"unit\">%<\/div><small>Enter the new interest rate after refinancing<\/small><\/div><div class=\"field has-term\" id=\"input-5\"><label for=\"field-5\">New Loan Term (Months)<\/label><div class=\"term\">n_new<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"new_loan_term_months\" id=\"field-5\" min=\"1\" step=\"any\" value=\"180\"\/><small>Enter the new loan term in months<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"250\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Monthly Payment on Current Loan<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>Monthly Payment After Refinancing<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Interest Savings After Refinancing<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"$\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"250\" aria-live=\"polite\"><h2 class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/h2><div class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center; margin: 32px 0;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-1721569815777345\"\n     data-ad-slot=\"6317458308\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n<p><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Refinance Interest Savings Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n$$PMT_{\\text{old}} = \\frac{P \\times r_{\\text{old}}}{1 &#8211; (1 + r_{\\text{old}})^{-n_{\\text{old}}}}$$\n$$PMT_{\\text{new}} = \\frac{P \\times r_{\\text{new}}}{1 &#8211; (1 + r_{\\text{new}})^{-n_{\\text{new}}}}$$\n$$\\text{Savings} = (PMT_{\\text{old}} &#8211; PMT_{\\text{new}}) \\times n_{\\text{new}}$$\n<\/div>\r\n\t<\/figure>\r\n\t<br \/>\n<strong>Where:<\/strong><\/p>\n<ul>\n<li><strong>Old Monthly Payment<\/strong> \u2013 monthly payment on the original loan<\/li>\n<li><strong>Old Loan Term<\/strong> \u2013 number of months left on the original loan<\/li>\n<li><strong>New Monthly Payment<\/strong> \u2013 monthly payment after refinancing<\/li>\n<li><strong>New Loan Term<\/strong> \u2013 number of months for the new refinanced loan<\/li>\n<\/ul>\n<p>This formula calculates the difference between what you would have paid on the original loan and what you will pay on the refinanced loan.<br \/>\r\n<\/section><br \/>\nRefinancing a loan can help reduce your monthly payment or shorten the term, leading to interest savings over the life of the loan. This calculator allows you to compare your old loan terms with the new ones to see how much interest you could save by refinancing. It\u2019s useful for mortgage, car loan, and personal loan refinancing.<\/p>\n<p>By refinancing at a lower interest rate or adjusting your loan term, you can potentially save significant amounts in interest payments, making it a valuable tool for financial planning.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This calculator helps you calculate the savings on interest after refinancing your loan. By comparing the old and new loan terms, it shows how much you can save by refinancing your loan with a lower interest rate or a modified term.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[25],"class_list":["post-250","post","type-post","status-publish","format-standard","hentry","category-finance","tag-interest"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=250"}],"version-history":[{"count":2,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/250\/revisions"}],"predecessor-version":[{"id":64266,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/250\/revisions\/64266"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}