How it works
Subtract the lump sum from principal and recalculate the fixed payment over the entered remaining term at the same rate.
Input definitions
- Balance immediately before lump sum
- Enter the value in the labeled unit.
- Principal reduction now
- Enter the value in the labeled unit.
- Nominal annual rate (%)
- Enter the value in the labeled unit.
- Remaining months after recast
- Enter the value in the labeled unit.
A worked example
- Balance immediately before lump sum
- 1200
- Principal reduction now
- 300
- Nominal annual rate (%)
- 0
- Remaining months after recast
- 12
Assumptions & limits
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
How is a recast different from an ordinary overpayment?
A recast recalculates the payment over the remaining term after reducing principal. Keeping the old payment instead normally accelerates payoff. This tool does not establish lender eligibility.
How does Loan recast payment after a lump sum work?
Subtract the lump sum from principal and recalculate the fixed payment over the entered remaining term at the same rate.
What are the limits of Loan recast payment after a lump sum?
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data.