Personal Loan Refinance Calculator and Rate Guide

This personal loan refinance calculator estimates a new loan’s monthly payment and total interest from the amount refinanced, APR, and term you enter. Compare the estimate with your current loan’s remaining payments and any lender-quoted fees; actual refinance rates and terms depend on the lender’s offer.

Formula

The calculator uses the standard fixed-payment loan formula. It converts the annual percentage rate (APR) to a monthly rate, then calculates the payment needed to repay the entered principal over the selected number of months.

• Monthly payment: M = P × r ÷ [1 − (1 + r)⁻ⁿ]
• Total interest: I = (M × n) − P
• Monthly rate: r = APR ÷ 1,200, where APR is entered as a percentage.
• Number of payments: n = years × 12.
• Principal (P): the amount of the new loan, in dollars; M: monthly payment, in dollars; I: total interest, in dollars.

The payment is shown to the nearest cent. Total interest uses that rounded monthly payment multiplied by the full number of payments, then subtracts principal. The calculator does not determine an available rate or a lender’s eligibility decision: enter a rate and term from an actual quote to model those figures.

Worked Example

Using the defaults—$20,000 principal, 8% APR, and a five-year term—there are 5 × 12 = 60 monthly payments. The monthly rate is 8 ÷ 1,200 = 0.0066667.

Substitute into the payment formula: M = 20,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰] ≈ $405.53 per month, rounded to the cent. Total interest is $405.53 × 60 − $20,000 = $4,331.80. These are estimates based on the stated fixed-rate formula and rounded payment.

Assumptions

• The APR is fixed for the full term.
• Payments are equal and made monthly, with the first payment one month after the loan begins.
• Interest compounds monthly at APR ÷ 12.
• Fees, taxes, insurance, late charges, and other costs are not included.

What Online Personal Loan Refinance Rates Mean

An online refinance rate is the APR a lender quotes for replacing an existing personal loan with a new one. There is no single online rate that applies to everyone, and a displayed starting rate is not a personal offer. Quoted terms can depend on the lender’s underwriting, the applicant’s financial information, the requested amount, and the repayment term. For a factual comparison, use the actual personalized quote and its stated fees rather than assuming a website’s advertised figure applies.

APR is intended to express borrowing cost as an annual percentage and may account for certain loan costs, but the exact presentation and included charges should be checked in the lender’s disclosure. The interest rate and APR are not necessarily identical. A longer repayment term can reduce the scheduled monthly payment while increasing the number of months interest accrues. Therefore, a lower payment by itself does not establish that refinancing costs less overall.

How Refinancing Works

With a refinance, a new loan is used to pay off an existing personal loan, after which the borrower makes payments under the new agreement. The new principal may differ from the old loan’s original amount: the relevant figure is typically the payoff amount on the date the old debt is settled, plus any charges financed into the new loan. Ask the current lender for a payoff figure with an effective date, since accrued interest can change the amount.

1. Check the current loan balance, payoff amount, remaining term, monthly payment, and any payoff or early-payment conditions in the contract.
2. Request a personalized quote showing the new APR, term, payment, total repayment amount, and itemized fees.
3. Enter the proposed new principal, APR, and term in the calculator. Use the same currency and a term expressed in years.
4. Compare the new loan’s scheduled payments and costs with the remaining payments on the existing loan, including any fees or timing differences.
5. Review the final disclosure and payoff process before relying on an estimate; the calculator does not submit an application or settle a loan.

Compare Total Cost, Not Just the Payment

For an apples-to-apples comparison, consider the remaining cost of keeping the current loan versus the total cost of the new one. Add any refinance fees that are paid upfront; if they are rolled into the new principal, include them in the amount entered. Check whether the new lender’s quoted total repayment includes all applicable charges, since the calculator’s interest result does not.

For example, a new loan could have a smaller monthly payment because it stretches repayment over more months. That does not necessarily mean the borrower pays less in total. Conversely, a lower APR on a similar term may reduce estimated interest, but fees can offset some or all of the difference. The exact comparison requires the current payoff amount and contract terms, as well as the new written offer.

Some contracts may include conditions or charges connected with paying off a loan early. Do not assume these apply or do not apply: check the agreement and ask the lender for a payoff quote. Also confirm how and when the old balance will be paid, so that payment timing does not create a missed payment or an unexpected overlap.

Limits and Common Misunderstandings

• The calculator is not a rate finder. It calculates payments from the APR you enter; it cannot predict an offer, approval, or credit outcome.
• Fees are outside the formula. Enter a principal that reflects financed charges, or account separately for upfront costs when comparing totals.
• Different terms change the comparison. Compare both monthly cash flow and total repayment, not only one figure.
• Rounding matters. The displayed payment is rounded to cents, and the interest estimate uses that rounded payment. A lender’s final schedule may differ slightly because of exact dates, daily accrual, or payment conventions.
• Variable terms are not represented. This model assumes a fixed APR and equal monthly payments, not a rate that changes over time.

Enter the new loan’s quoted amount, APR, and term rather than a general advertised rate. For the current loan, use its actual remaining schedule or payoff statement instead of multiplying the original payment by the original term, because payments already made and accrued interest affect what remains.

Frequently Asked Questions

What is a personal loan refinance rate?
It is the APR quoted for a new personal loan intended to pay off an existing loan. The applicable rate is specific to the lender’s offer; a general online display is not a guaranteed personal rate.

How do I calculate a refinance payment?
Enter the new loan’s principal, APR, and term. The calculator converts APR to a monthly rate and applies the fixed-payment formula. It does not include fees unless those are reflected in the principal you enter.

Does refinancing always lower the total cost?
No. A lower payment can result from a longer term, and fees can add cost. Compare the remaining cost of the current loan with the new loan’s full repayment amount and charges.

Should I use my current balance or payoff amount?
For a precise estimate, use the amount the new loan would need to cover on the payoff date, not necessarily the balance shown on an earlier statement. Request a dated payoff figure from the current lender.

Are online refinance rates guaranteed?
No. A published rate may describe an example or starting point. Only the lender’s personalized written offer and final disclosure give the terms applicable to that loan.

This result is an estimate; the lender’s disclosure gives the exact figures.

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in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2