Tool · Renewals

Renew or keep paying?

A renewal pays off your loan with a new one and hands you some extra cash, often with a lower payment. It also restarts the interest on what you still owe. Enter your current loan and the offer to see what the new cash really costs.

Reviewed 24 September 2026 · Method: precomputed interest and amortization · Example values are fictional

Result

Current: $4,000.00 at 32% for 30 months, 12 paid, precomputed, Rule of 78s rebate. Renewal: $500.00 new cash at 32% for 30 months.

Renewing costs $866.24 to get $500.00.Borrowing the $500.00 on its own at the same terms would cost $232.69. Renewing lowers your payment to $162.77, but restarts 30 months of interest on the $2,832.35 you still owe, and the Rule of 78s adds $67.83 to that payoff.

Keep paying

no new cash

Monthly payment: $195.38
Debt-free in: 18 months
Paid from today: $3,516.89

No new cash

Renew

32% · 30 mo

Monthly payment: $162.77
Debt-free in: 30 months
Paid from today: $4,883.13

The $500.00 costs $866.24

Payoff includes $67.83 from the Rule of 78s

Keep paying, borrow $500.00 separately

32% · 30 mo

Monthly, both loans: $219.80
Debt-free in: 30 months
Paid from today: $4,249.58

The $500.00 costs $232.69

$219.80 a month while both run, then $24.42

Renewing costs $866.24 to get $500.00. Your current loan has 18 months left, $3,516.89 in payments, and a payoff of $2,832.35 (precomputed, Rule of 78s rebate). Borrowing the $500.00 on its own at the same terms would cost $232.69. Renewing lowers your payment to $162.77, but restarts 30 months of interest on the $2,832.35 you still owe, and the Rule of 78s adds $67.83 to that payoff.

Line	Keep payingno new cash	Renew32% · 30 mo	Keep paying, borrow $500.00 separatelyLowest cost32% · 30 mo
New cash to you	$0.00	$500.00	$500.00
Pays off the current loan	—	$2,832.35	—
Fees	$0.00	$0.00	$0.00
Amount financed	—	$3,332.35	$500.00
Monthly payment	$195.38	$162.77	$219.80
Debt-free in	18 months	30 months	30 months
Total paid from today	$3,516.89	$4,883.13	$4,249.58
Cost of the new cash	—	$866.24	$232.69

Show the math

Current loan: $4,000.00 at 32% for 30 months, 12 payments made, precomputed, Rule of 78s rebate
  Payment              = $195.38;  18 payments left = $3,516.89
  Payoff today         = remaining $3,516.89 − Rule of 78s rebate $684.54 = $2,832.35   (actuarial would be $2,764.52)

Renew: 32% for 30 months
  New loan             = payoff $2,832.35 + new cash $500.00 = $3,332.35
  Payment              = $162.77;  total of payments = $4,883.13
  Cost of the cash     = $4,883.13 − $3,516.89 (keeping the loan) − $500.00 (the cash) = $866.24

Keep paying and borrow $500.00 separately at 32% for 30 months
  Separate loan        = $500.00;  payment $24.42;  total $732.69
  Cost of the cash     = $732.69 − $500.00 = $232.69

Why renewing usually costs more: the $2,832.35 you still owe starts a new 30-month schedule, so its interest is charged again from the top of the curve.

Questions to ask your lender

What is my exact payoff on the current loan today, and is the rebate of unearned interest worked out by the Rule of 78s or the actuarial method? I estimated $2,832.35.
Of the new $3,332.35 loan, how much pays off my old loan and how much is new money to me? I expect $500.00 in hand.
Are there fees, credit insurance or other add-ons in the renewal, and are they optional?
Could I borrow just $500.00 instead of renewing? At the same rate that would cost about $232.69 in interest.
Does renewing restart my term? I would be paying for 30 months instead of the 18 months I have left.

Assumptions and limits

Both loans have level monthly payments, made on time and in full. The current loan's payoff uses the rebate method you chose; your contract and payoff letter govern.
The separate-loan comparison assumes you could borrow just the cash at the same rate, term and fees as the renewal. A small loan may cost more or not be offered; ask.
Fees are added to the new loan. Credit insurance and other add-ons are not included; the add-on cost tool shows what those add.
Cost of the new cash is everything you pay from today, minus what keeping your current loan would cost, minus the cash itself.

Learn more

See your payoff under both rebate methods in What is my payoff on a precomputed loan?. Renewals often include credit insurance: see what add-ons really cost.