How to Calculate Loan Refinance
Calculate refinance savings comparing your current loan to a new rate and term.
The Formula
monthlySavings = oldPayment - newPaymentThe loan refinance formula uses the mathematical relationship: monthlySavings = oldPayment - newPayment. Each variable in the formula represents a measurable quantity that affects the final result.
Step-by-Step Method
- 1Identify all input values needed for the loan refinance calculation.
- 2Substitute your known values into the formula: monthlySavings = oldPayment - newPayment.
- 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
- 4Check that your result has the correct units and is within a reasonable range.
- 5Verify using the interactive Loan Refinance Calculator to confirm your answer.
Related Topics
refinanceloanmortgagemonthly savings
Use the Interactive Calculator
Skip the manual math — get instant results with our free Loan Refinance calculator.