Refinance Payment Difference and Cost Recovery
Compare keeping a loan through its remaining term with refinancing. A lower payment can accompany higher total interest after extending the term, so inspect both rather than monthly savings alone.
- Runs in your browser
- Nothing is uploaded
- No signup; device limits apply
Numbers stay on your device. Nothing is sent to a server.
Include any cash-out amount or costs financed into the new loan; leave equal to the current balance for a rate-and-term comparison.
Cash paid at closing. Used to estimate the break-even month.
How to use this tool
Enter USD current balance, rate and remaining months, then new principal, rate and years. Put cash-out or financed costs in new principal and cash paid at closing in the separate costs field.
Results and examples
Recovery months equal cash closing costs divided by monthly savings. This is not discounted investment break-even or a comparison of remaining equity; without payment savings, this recovery measure does not apply.
Worked example
USD 100 monthly savings against USD 2,000 cash costs gives a simple twenty-month recovery period.
Limitations
- Points, escrow and prepayment penalties are not added automatically.
- Monthly savings alone cannot resolve higher lifetime interest or additional principal.
Fields
| Field | Guidance and constraints |
|---|---|
| Current balance | Accepted range: 1–100000000 · Input step: 100 |
| New loan principal | Include any cash-out amount or costs financed into the new loan; leave equal to the current balance for a rate-and-term comparison. · Accepted range: 1–100000000 · Input step: 100 |
| Current interest rate | Accepted range: 0–50 · Input step: 0.01 |
| Months remaining | Accepted range: 1–600 · Input step: 1 |
| New interest rate | Accepted range: 0–50 · Input step: 0.01 |
| New term (years) | Accepted range: 1–50 · Input step: 1 |
| Closing costs | Cash paid at closing. Used to estimate the break-even month. · Accepted range: 0–1000000 · Input step: 50 |
Data handling
Processing stays in the current browser tab; the site does not upload tool input for the calculation itself.
Sources
Frequently asked questions
Can new principal differ from current balance?
Yes. Enter cash-out or financed costs in the new balance.
Does passing break-even ensure a profit?
No. It is only a monthly-cash-cost recovery measure.
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