Refinance when it pays
Estimate monthly saving, fee break-even months, and lifetime interest difference when refinancing a personal loan.
LoanCalc Lab editorial · Methodology: reducing-balance EMI / amortisation with disclosed assumptions (fees optional where shown) · Last checked:
Your inputs
Results
Current monthly
£269.17
New monthly
£254.03
Monthly saving
£15.14
Break-even
1 year 2 months
Remaining interest if you stay
£1,690
New loan interest
£1,145
Lifetime saving (after fees)
Negative means refinance costs more overall
£345
Most people next
Illustrative only — not personalised financial advice and not a credit offer. Rates, fees and terms vary by lender and country. Check the lender’s disclosure before you borrow. Full calculator disclaimer.
Equations & assumptions
Break-even months ≈ refinance fees ÷ monthly payment saving (when saving > 0). Lifetime saving ≈ remaining interest on current loan − (new loan interest + fees).
- Capital-and-interest reducing balance; monthly rate = APR ÷ 12. Representative APR on UK credit ads may include fees — we model fees separately unless stated.
- Current loan assumed to continue on its remaining term at the current rate.
- No early repayment charge on the current loan modelled — add any ERC into fees.
Notes & FAQs
- What if the new term is longer?
- A lower rate with a longer term can cut the monthly payment but increase total interest. Watch lifetime saving, not only the monthly figure.