This refinance calculator from Graniteford Finance, a small-business funding broker in Casper, WY, works out the monthly payment, total interest and total repaid on a proposed new business loan. Comparing that total, plus fees, with the remaining payments and payoff charges on your current loan shows whether refinancing would cost less overall. It is arithmetic, not an offer.
How to compare a refinance in four steps
- Total what is left on the current loan. Multiply the current payment by the number of payments remaining. If the loan has a balloon, add it.
- Price the new loan. Enter the payoff amount you would borrow (from the current lender's payoff letter), the new interest rate and the new term into the calculator. Read the total repaid.
- Add the costs of switching. Add the new loan's fees and any prepayment charge on the old loan to the new loan's total.
- Compare. If step 3 is lower than step 1, the refinance saves money overall. If it is higher, it only changes the payment schedule.
Which number goes in which box
| Box | Enter | Where to find it |
|---|---|---|
| Amount | The payoff amount on the current loan, plus any fees you will roll into the new loan | The current lender's payoff letter and the new offer |
| Interest rate | The note rate on the new loan offer | The new loan agreement or term sheet |
| Term | The number of months in the new loan | The new offer |
Payments are treated as equal and monthly, with interest charged on the shrinking balance. If the new loan is structured differently, for example weekly payments or interest-only months, use the lender's own payment schedule instead.
A labelled example, in proportions
Hypothetical, to show the logic only: suppose the new loan's payment is lower than the current one but runs for twice as many months as remain on the old loan. Even with a lower payment, the total of all new payments can exceed the total left on the old loan. That is the most common way a refinance that feels like a saving ends up costing more. The comparison in step 4 catches it.
What the calculator leaves out
- Fees, unless you add them to the amount
- Prepayment charges on the current loan
- Variable rates, which change the payment over time
- Tax effects; ask your accountant
- Anything about whether a partner will offer a refinance, or on what terms
Illustrative arithmetic only; lending partners set actual rates and terms.
Before you decide
Read refinancing business debt for the full checklist, including lien releases and personal guarantees. For how term loans amortize, see business term loans.
By Graniteford Finance · Updated