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Refinance Calculator

Calculate whether refinancing your loan is worth it. Compare old and new terms and determine potential savings.

€
%
€
months
%
months
€

Savings

€342.88

New Monthly Payment

€338.69

Refinancing is worth it! You save €342.88.

Old Total Costs
€16,800.00
New Total Costs
€16,457.12
Savings
€342.88

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Understanding Refinancing

Refinancing is the process of replacing an existing loan with a new loan that offers better terms. The goal is to reduce the monthly payment or the total costs. Refinancing is particularly worthwhile when general interest rates have dropped significantly since the original loan was taken out, or when an expensive overdraft facility is to be replaced by a more affordable installment loan.

How the Calculator Works

Enter the details of your existing loan and the terms of the new loan offer. The calculator compares the total costs of both options, including refinancing costs. The result shows the potential savings, the new monthly payment, and whether refinancing is worthwhile overall.

Consider Refinancing Costs

Every refinancing may involve costs: early repayment penalties for the old loan, processing fees, or notary costs. These costs must be at least offset by the interest savings for the refinancing to be worthwhile. The calculator automatically includes these costs in the comparison.

Tips for Successful Refinancing

Compare multiple loan offers before making a decision. In addition to the interest rate, pay attention to total costs and the flexibility of the new loan. Options for extra repayments and free rate adjustments can provide additional long-term benefits. Also check whether your old loan agreement includes an early repayment penalty and how much it amounts to.

Frequently Asked Questions

Refinancing means replacing an existing loan with a new loan that offers better terms. The goal is to reduce total costs, for example through a lower interest rate or a more favorable term. Refinancing is particularly common for consumer loans, overdraft facilities, and credit card debts.
Refinancing is worth it when the savings from the new loan exceed the refinancing costs. The key factors are the interest rate difference, the remaining term, and any early repayment penalties. As a rule of thumb: the higher the remaining debt and the greater the interest rate difference, the more likely a switch is worthwhile.
Refinancing may involve early repayment penalties for the old loan, processing fees for the new loan, and possibly notary costs. For installment loans, the early repayment penalty is capped at a maximum of 1 percent of the remaining debt. Some banks offer free refinancing.
A shorter term leads to higher monthly payments but lower total costs. A longer term reduces the monthly burden but increases total interest costs. The calculator helps find the optimal term where savings are maximized and the monthly payment remains manageable.

All calculations are for general informational purposes only. Not financial, tax, or legal advice. No guarantee of accuracy. Use at your own risk. Full disclaimer