Refinancing a loan involves taking out a new loan to pay off an existing one. The primary goal is usually to secure a lower interest rate, which can lead to a lower monthly payment and significant savings over the life of the loan. The Refinance Calculator is a powerful comparison tool that helps you determine whether refinancing your mortgage or another loan is a financially sound decision. The calculator is split into two sections to compare your current loan with the proposed new loan. In the 'Current Loan' section, you need to enter the 'Remaining Principal' balance on your existing loan, its 'Interest Rate' (as a percentage), and the 'Remaining Term' in years. In the 'New Loan' section, you will input the 'New Interest Rate' and the 'New Term' in years for the refinancing loan you are considering. For simplicity, this calculator assumes the new loan's principal will be the same as your current remaining principal. Once you have filled in all the details, click 'Calculate Savings'. The tool will then calculate and compare the monthly payments for both loans. The results are displayed clearly, showing you the 'Current Monthly Payment', the 'New Monthly Payment', and the 'Monthly Savings'. Most importantly, it also calculates the potential 'Potential Lifetime Savings', which is the total difference in interest paid over the life of the loans. This comprehensive overview helps you see both the short-term and long-term financial impact of refinancing.