What do you want refinancing to achieve?
| Your objective | The measure to compare | The question that can change the result |
|---|---|---|
| Reduce the total cost | All remaining cash payments if you stay versus all future payments and costs if you switch | Do exit and establishment costs use up the rate saving? |
| Reduce regular repayments | Cash required on each payment date | Is the reduction mostly coming from a longer term? |
| Consolidate several debts | Combined costs, repayment dates and debt-free date | Will short-lived expenses remain in debt for much longer? |
| Change or release security | Assets and guarantees attached to each facility | What release conditions or new commitments apply? |
| Deal with an approaching maturity | Amounts due and remaining conditions by the required date | What happens if the replacement is not ready? |
Swipe or scroll the table sideways to see every column.
Get the current loan onto one page
Collect the outstanding principal, rate, remaining term, payment schedule and any final amount. Then obtain a payout quote with its expiry date. Accrued interest and exit charges can mean the payout differs from the statement’s principal balance.
Keep the costs already paid separate from the decision ahead. For a stay-or-switch comparison, count the future payments that change under each option. Record the replacement principal, rate, term, fee treatment and any ongoing charges on the same basis.
- If switching costs are paid separately, keep them outside the new principal.
- If costs are financed, include them in the new debt and model the resulting repayments.
- If a fee is deducted from the new advance, check that the cash received still covers the payout.
- Compare different payment frequencies using their actual schedules rather than their displayed instalment alone.
Worked comparison: the lower rate needs the right term
Assume $40,000 of principal remains on a loan at a constant 12% nominal annual rate, with 24 equal monthly payments in arrears. A replacement offers an illustrative 10% rate and $500 of all switching costs, paid separately. Both options fully repay principal, with no balloon or ongoing fee. These are hypothetical inputs, not current loan offers.
| Measure | Stay: 24 months | Switch: 24 months | Switch: 36 months |
|---|---|---|---|
| Opening principal | $40,000 | $40,000 | $40,000 |
| Nominal annual rate | 12% | 10% | 10% |
| Monthly repayment | $1,882.94 | $1,845.80 | $1,290.69 |
| Future scheduled repayments | $45,190.53 | $44,299.13 | $46,464.75 |
| Additional switching costs | $0 | $500 | $500 |
| Total future cash paid | $45,190.53 | $44,799.13 | $46,964.75 |
Swipe or scroll the table sideways to see every column.
Keeping a 24-month term saves about $391.40 after switching costs. Extending the new loan to 36 months lowers the monthly payment by about $592.25 compared with staying, but costs about $1,774.22 more in total and keeps the debt for another year.
Totals use unrounded calculations. A smaller payment can be useful cash-flow relief, but describe it separately from a saving. Security, guarantees and other contract conditions still need their own comparison.
Use the refinance calculator with the right inputs
Atlas’s refinance calculator compares fully repaying monthly loans at constant rates. Enter the current principal, remaining rate and term, new rate and term, and all switching costs. In this model the principal stays the same and switching costs are paid separately.
Include payout interest beyond principal and applicable exit/establishment charges in the switching-cost input. A proposal that finances fees, changes principal, uses a balloon or has irregular payments needs a model that represents those features. Keep the written payout and loan documents beside the result.
The simple payback figure divides switching costs by the monthly payment reduction. It is shown only where the full comparison saves money and recovery falls within both terms. It is not a discounted valuation or a substitute for the total-cost comparison.
Check what happens to security and the debts being replaced
For consolidation, list each intended payout and confirm which debts remain after settlement. Compare the new term with the life of the expenses originally funded. Also check whether unsecured obligations would become secured and whether new guarantees are requested.
Ask what is required to discharge each old facility and release its security. Confirm the amount, recipient and date of each settlement payment, together with any remaining conditions. A proposed replacement facility is not evidence that an old loan has been closed.
Bring Atlas the reason, figures and next deadline
Atlas helps you assess what the refinance is intended to improve and compare the resulting cash commitment. Use the stay-or-switch calculation for the cost decision and the maturity calendar for the timing decision.
For an enquiry, explain the existing borrowing, the change you want and any approaching deadline. You can start with approximate figures, then replace them with current payout information and written terms before relying on the comparison. An enquiry does not settle an old loan or apply to a lender.
What to prepare
- The reason for refinancing and the change that matters most
- Current principal, rate, remaining term and full repayment schedule
- Current payout quotes with expiry dates
- All exit, establishment, valuation and other switching costs
- The new principal, term, rate, fee treatment and final obligations
- A list of debts to be settled and any that will remain
- Security, guarantee and discharge conditions for each facility
Common questions
Is business-loan refinancing worth it for a lower interest rate?
Only the complete comparison can answer that. A lower rate may be offset by fees or a longer term. Compare all future payments and switching costs, then consider the security and flexibility changes.
Does a smaller monthly repayment mean I save money?
No. It can reflect a longer repayment period. In the worked example, the 36-month replacement reduces each payment but costs more overall than keeping the current loan.
Can I consolidate several business debts?
It is a structure to discuss, subject to the provider and circumstances. List each payout, compare the combined future cost and check whether the new loan extends short-lived debts or changes the security involved.
What is the difference between a loan balance and a payout figure?
The principal balance records debt outstanding. A payout quote may include accrued interest, exit charges and other amounts needed to close the facility at a particular date. Check the quote’s validity period.
How do I use Atlas’s business-loan refinance calculator?
Enter current principal, current rate and months remaining, the replacement rate and term, and switching costs paid separately. It assumes equal monthly payments and no balloon, ongoing fee or rate changes. Use a suitable alternative model if the proposed loan works differently.
Can the calculator include fees added to the new loan?
The refinance calculator treats switching costs as separately paid cash and keeps principal unchanged. Use the loan-comparison tool to explore a different opening debt and supported fee treatment, then reconcile it with the actual payout and proposal.
What happens after I send a refinance enquiry?
The enquiry gives Atlas the borrowing objective and starting details to discuss. Have the existing schedules, payout figures and proposed terms ready. Credit assessment, new documents and settlement remain separate steps.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.