Loan Refinancing Calculator
Refinancing and restructuring involve modifying existing loan terms—such as interest rate, tenure, or repayment schedule—to improve cash flow or reduce financial burden. More info →
Input
Enter current and new loan terms.
How This Calculator Works
Refinancing means replacing your current loan with a new one, usually at a lower rate or over a different term. The calculator works out the EMI and total interest for both loans on your current balance, then shows how much you save each month and in total.
The Formula
EMI = B × r × (1 + r)n ÷ [(1 + r)n − 1]
B = current balance · r = annual rate ÷ 12 ÷ 100 · n = months · Interest = EMI × n − B
What Each Input Does
- Current Loan Balance
- The amount still owed. Both loans are calculated on this balance.
- Current Interest Rate (%) / Remaining Months
- Your existing loan's rate and how many months are left on it.
- New Interest Rate (%) / New Loan Tenure (Months)
- The rate and term offered on the new loan.
Step by Step
- The EMI is worked out for the current loan and for the new loan.
- Total payment for each = EMI × months; interest = total payment − balance.
- Monthly saving = current EMI − new EMI.
- Total interest saving = current interest − new interest.
Reading the Result
Positive saving – refinancing lowers your total interest.
Negative saving – refinancing costs more in interest, often because the new term is longer.
Processing fees or other refinancing costs are not included, so compare them against the saving.
Quick Example
Balance 1,000,000, current rate 10% with 180 months left, new rate
8% over 180 months. The EMI falls from 10,746 to 9,557, a monthly saving of
1,190. Total interest drops from 934,289 to 720,174, saving about 214,115.
Artoval Financial Labs