Loan Recast Calculator
See how much a lump-sum payment lowers your monthly payment when your lender recasts the loan.
New monthly payment
$1,638.89
- Payment before
- $1,966.66
- Monthly saving
- $327.77
- Interest saved over the loan, after the fee
- $55,954
- Months you would cut by keeping the old payment
- 108
Recasting lowers your payment by $327.77 to $1,638.89 a month.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| Payment before the recast | $300,000.00 at 6.5% over 324 months | $1,966.66 |
| Payment after the recast | $250,000.00 at 6.5% over 324 months | $1,638.89 |
How it works
Enter your current balance, rate and remaining years, then the lump sum you plan to pay.
Worked example
A $135,000 balance at 4.5% with 30 years left, and a $35,000 lump sum:
- Payment before: $684.03
- New balance: 135,000 − 35,000 = $100,000
- New payment: $506.69, a saving of $177.34 a month
Sources
Frequently asked questions
What is a loan recast?
A recast, sometimes called re-amortization, is when you make a lump-sum payment toward principal and the lender recalculates your monthly payment over the same remaining term. The rate and end date stay the same, but the payment falls.
How is the new payment calculated?
Subtract the lump sum from the balance, then work out the normal loan payment on that smaller balance for the years left at the same rate. A $135,000 balance at 4.5% with 30 years left is $684.03 a month, and after a $35,000 lump sum the payment is $506.69.
How is a recast different from a refinance?
A recast keeps your current loan, rate and term, and usually costs a small fee. A refinance replaces the loan with a new one at a new rate and has full closing costs.
Should I recast or keep the payment and finish sooner?
Keeping your old payment after a lump sum shortens the loan and saves the most interest. Recasting lowers the monthly payment but not the end date. The calculator shows how many months you would cut the other way.
Do all lenders offer a recast?
No. Not every loan can be recast, and lenders set a minimum lump sum and a fee. Government-backed loans often cannot be recast. Ask your servicer.
An estimate for information only. Your servicer sets the terms, fees and minimum lump sum for a recast, and the CFPB pages on recasting could not be read for this page.