Financial Calculators
Refinance Calculator
Determine if refinancing your loan is financially beneficial.
What is the Refinance Calculator & How does it work?
The Refinance Calculator helps you decide whether refinancing your current mortgage to a new one with better terms makes financial sense. By comparing your existing loan against potential new loans, the calculator estimates monthly savings, calculates the break-even point, and projects lifetime savings. This tool is essential for understanding how changes in interest rates or loan terms can impact your overall cost of borrowing.To use this calculator effectively, input your current loan details such as principal amount, interest rate, remaining term, and monthly payment. Then, enter the proposed new loan’s interest rate and term. The calculator will compute how much you could save each month by refinancing, when you might break even on the costs of refinancing, and the total savings over the life of the loan.
Monthly Savings = Current Monthly Payment – New Monthly Payment
Var = meaning
Parameters
$
%
years
years
$
%
years
$
%
%
Monthly Savings
—
Break-even Point (Years)
—
Lifetime Savings
—
Frequently Asked Questions
How do I input my current loan details into the calculator?
Enter your current loan amount, interest rate, remaining term, and any additional fees.
What does the break-even point mean in the refinance calculator?
The break-even point is when the total cost of refinancing equals the savings from lower monthly payments.
Can I use this calculator for a home equity loan as well?
This calculator is primarily for mortgage refinancing. For home equity loans, consider using a different tool or consulting with a financial advisor.
How does the calculator estimate lifetime savings?
The calculator projects future monthly payments and compares them to your current payments over the life of the loan to estimate savings.
What factors should I consider before refinancing based on this calculator’s results?
Consider market conditions, closing costs, new interest rates, and any potential changes in your financial situation.
Is the refinance calculator suitable for both fixed-rate and adjustable-rate mortgages?
Yes, you can use the calculator for both types of mortgages to compare different refinancing options.
How often should I run this calculator to check if refinancing is still beneficial?
Run the calculator periodically, especially when interest rates change or your financial situation evolves, to reassess the benefits of refinancing.
Results are for informational purposes only and do not constitute professional advice.