Loan calculatorsWhat would refinancing change?
Compare monthly payments, cash retained and the cost of changing the loan.
Your assumptions
Start with your figures. Samples are shown below.
Operating cash buffer (optional)
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Your results
Lower payments, higher lifetime cost.
Illustrative inputsInitial monthly cash freed
$1,339
$7,587 → $6,248 /mo · Initial relief lasts 8 years
Closing and payoff costs: $15,000 financed (planning allowance)
More cash over 5 years
$80,323
After cash-paid costs
More debt at year 5
$73,027
$235,133 current → $308,160 replacement
Net position at year 5
+$7,296Cash difference adjusted for debt remaining. Costs first recovered after 2 years 1 month; the benefit reverses later.
Loan and cost details
- Current → replacement payment
- $7,587 → $6,248 /mo
- Replacement principal
- $515,000
- Closing and payoff costs
- $15,000 financed (planning allowance)
- Fees paid upfront
- $0
The replacement has $21,445 higher full-term interest and new costs. Pre-tax; no return on retained cash is assumed.
Explore cash, debt and total cost
Cash retained and the longer-term cost picture
View chart data
| Date | Cash retained after cash costs | After costs + debt remaining |
|---|---|---|
| Today | $0 | -$15,000 |
| Year 1 | $16,065 | -$6,868 |
| Year 2 | $32,129 | -$327 |
| Year 3 | $48,194 | $4,392 |
| Year 4 | $64,258 | $7,030 |
| Year 5 | $80,323 | $7,296 |
| Year 6 | $96,387 | $4,861 |
| Year 7 | $112,452 | -$646 |
| Year 8 | $128,516 | -$9,639 |
| Year 9 | $53,536 | -$18,294 |
| Year 10 | -$21,445 | -$21,445 |
| Measure | Keep current loan | Refinance |
|---|---|---|
| Remaining / replacement term | 8 years | 10 years |
| Initial monthly payment | $7,587 | $6,248 |
| Payments over the next 12 months | $91,045 | $74,980 |
| Payments made in 5 years | $455,225 | $374,902 |
| Debt remaining at year 5 | $235,133 | $308,160 |
| Interest paid in 5 years | $190,358 | $168,062 |
| New transaction costs | — | $15,000 financed |
| Full-term interest + new costs | $228,360 | $249,805 |
The replacement has $21,445 higher full-term interest and new costs. At year 5, cash retained plus the change in debt remaining is +$7,296. Recovery including remaining debt: 2 years 1 month. This compares payments, cash-paid fees and balances at the same date, rather than dividing fees by the initial payment reduction. The initial economic benefit reverses later under these assumptions. Assess cash availability separately from lifetime borrowing cost.
Give the cash a purpose.
Modeled first-year cash retained: $16,065.
If retained, additional cash could support a reserve buffer, inventory or payroll. No return on reinvested cash is modeled. Cash-paid costs are deducted once; financed costs are reflected in the replacement payment.
Assumptions and limitations
AWG is an SBA financing advisor and placement firm, not a lender. Financing is subject to eligibility, lender underwriting and approval. These figures are illustrative, not an offer or approval.
- All rates and fees are your assumptions. No current rate feed, SBA fee schedule or automatic eligibility decision is used.
- Loans use constant rates, monthly amortization and end-of-month payments. Lender day counts, rounding and payment dates can differ. Calculations retain full precision; displays use whole dollars and CSV schedules use cents. Summing rounded rows can differ from model totals.
- Unknown costs are excluded, visibly marked incomplete and identified in reports and exports. Known costs remain included. Financed costs increase principal and are not also deducted as cash paid at closing.
- Refinance compares the same starting debt, payments and debt remaining at the same date. Lower payments can increase full-term cost.
- Property results include a hypothetical sale with selling costs and debt payoff. Taxes, lease deposits and fit-out differences are excluded.
- Only the labeled acquisition comparison models interest-tax effects. It assumes a fully usable same-period deduction; principal and fee deductions are excluded. Other results are pre-tax.
- Seller notes remain separate debts, with entered standby, accrual, amortization and maturity assumptions. Their terms and equity treatment require lender and legal review. Bank balloons, variable-rate resets and complex multi-loan structures are excluded.
- Inputs remain in this tab’s memory while you switch calculators. Reloading or leaving the loan calculators clears them. They are not submitted, stored in your browser or attached to an inquiry. A download stays under your control.
Questions, answeredRead the assumptions.
Why can a refinance lower payments but increase total costs?
Spreading repayment over more months can reduce the monthly payment while leaving debt outstanding longer. The tool shows cash retained, remaining debt and full-term interest plus new costs separately, rather than treating payment relief as total savings.
How are closing costs and the SBA guaranty fee handled?
Enter one total for the new costs, including any applicable guaranty fee, closing costs and payoff or prepayment charges. Choose whether to model them as cash paid or added to the replacement loan. No current fee schedule is assumed, and financing costs remain subject to lender review.
What does cost recovery mean here?
The tool compares cumulative payments, cash-paid costs and the remaining debt at the same date. It is more complete than dividing fees by the first monthly payment reduction. A temporary advantage can reverse later, which is shown when it occurs.