Refinance Calculator

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1. Current rate per month

   i = annual rate ÷ 100 ÷ 12

   7.5 ÷ 100 ÷ 12 = 0.00625

2. Current payment over the 300 months left

   PMT = P × i ÷ (1 − (1 + i) ^{to the power of −n})

   250,000.00 × 0.00625 ÷ (1 − (1 + 0.00625) ^{to the power of −300}) = 1,847.48

3. New rate per month

   i = annual rate ÷ 100 ÷ 12

   6 ÷ 100 ÷ 12 = 0.005

4. New loan months

   n = years × 12

   30 × 12 = 360

5. New payment

   PMT = P × i ÷ (1 − (1 + i) ^{to the power of −n})

   250,000.00 × 0.005 ÷ (1 − (1 + 0.005) ^{to the power of −360}) = 1,498.88

6. Monthly savings

   current − new payment

   1,847.4779 − 1,498.8763 = 348.60