- Remaining payments
- —
- Interest and fees
- —
- Term
- —
Current loan
£
Use the current capital balance shown by your lender.
yr
mo
What do you know about the current loan?
% a year
Enter the total annual nominal borrowing rate. For a tracker loan, include the current benchmark rate and the lender’s margin.
£/mo
The rate is estimated using a standard repayment-loan model.
New refinancing offer
%
yr
mo
Enter the total annual nominal borrowing rate. For a tracker loan, include the current benchmark rate and the lender’s margin.
£
£/mo
£/mo
£
Comparison result
The new option may cost less
The comparison uses the full remaining cost, not only the first monthly payment.
Potential saving—over the selected repayment period
- Total payments
- —
- Interest and fees
- —
- Term
- —
Monthly payment change—
Break-even point—
Term change—
Estimated current interest rate—
PAYMENT PROGRESS
How much will you have paid in total?
Current optionNew option
KEY POINTS
Comparison over time
| Time | Current option | New option | Difference |
|---|
4 simple steps
How to use the Loan Refinance Calculator
Find the outstanding balance
Use the capital balance due today, rather than the amount originally borrowed.
Enter the rate or payment
If you do not know the nominal rate, choose monthly payment and the calculator will estimate it using a standard repayment model.
Include every charge
Add arrangement, broker, settlement and recurring administration fees that apply to either option.
Compare cost as well as payment
A smaller payment is not automatically cheaper if the new term is longer.
What matters most
How to calculate whether refinancing a loan is worth it
Refinancing replaces the outstanding balance of an existing loan with new borrowing. A fair comparison uses today’s balance, the current remaining term, the proposed term and every fee triggered by the change.
The calculator builds both repayment schedules and compares the remaining cash payments and financing costs. The break-even point shows when accumulated savings have recovered the one-off refinancing costs.
Practical explanation
Monthly payment versus total amount repayable
A lower interest rate can reduce both the instalment and total cost. Extending the term can also reduce the instalment, but may increase the total interest paid.
Check the monthly change, overall saving and term change together. Your lender’s APR and total amount repayable remain the formal figures for comparing a regulated offer.
What matters most
What refinancing costs should be included?
Possible costs include an arrangement fee, broker fee, account fee and an early settlement charge. Enter only costs that actually apply to the quotations being compared.
For a mortgage, use the dedicated remortgage calculator because valuation, legal, product and early repayment charges can materially change the result.
Trusted sources
Where can I check official guidance?
Before making a decision, check your agreements, the lender’s personalised illustration and current official guidance.
FAQ
Frequently asked questions
It means taking new borrowing to repay the outstanding balance of an existing loan, usually to change the rate, monthly payment or term.
When the new interest and fees, including one-off costs, are lower than the remaining cost of keeping the current loan.
No. A longer term often lowers the monthly payment while increasing the total interest and fees.
Choose monthly payment. The calculator estimates a nominal annual rate from the balance, payment and term using a standard repayment-loan assumption.
It is the first month after which accumulated savings have covered the one-off refinancing costs and remain positive.
Enter the nominal borrowing rate used to calculate interest. APR includes certain fees, so entering APR and those fees again can double-count costs.
Yes, when it is repaid by regular capital-and-interest instalments.
No. It is an illustrative calculation; eligibility, APR, charges and final terms come from the lender.