Loan Recast Calculator
Recasting a loan means putting a lump sum toward your principal, then having your lender recalculate ("re-amortize") your monthly payment over your existing remaining term and rate — unlike refinancing, your rate and term stay the same, only the payment changes. This calculator shows your new, lower payment after a recast.
Enter your numbers and select Calculate to see your estimated payment.
How this calculation works
The new balance (current balance minus lump sum) is re-amortized over the same remaining term at the same interest rate, using the standard amortization formula.
Example calculation
A $250,000 balance at 6.5% with 25 years remaining, recast after a $30,000 lump sum, drops the payment from about $1,688 to roughly $1,485 per month — with the same 25-year term and rate.
Frequently asked questions
How is a recast different from refinancing?
Refinancing replaces your loan with a new one, often at a new rate and term, and typically involves closing costs. A recast keeps your original rate and term but lowers your payment based on a reduced balance — usually for a smaller flat fee.
Do all lenders offer recasting?
No — recasting is a lender-specific option, and not all loan types or servicers support it. Confirm availability, minimum lump-sum requirements, and any fee with your loan servicer.
Does recasting shorten my loan term?
No, a recast keeps your term the same and lowers your payment. If you want to shorten your payoff timeline instead, see the Loan Early Payoff Calculator.
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This calculator provides estimates for informational purposes only and is not a loan offer or financial advice. See our Disclaimer.