Loan Refinance Savings Calculator with Fee Break-Even & True Net Saving
Find out whether refinancing your loan actually saves money. Compare remaining interest on your current loan against a new loan, account for all fees, and see the exact month your refinancing pays for itself.
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Currency
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Loan Refinance Savings Calculator
Section 1: Current Loan
$
How much you still owe on the current loan.
%
Annual interest rate on your existing loan.
mo.
How many monthly payments are left on your current loan.
Section 2: New Refinance Loan
%
Annual interest rate on the new refinance loan.
mo.
Term of the refinance loan. Same or shorter saves the most; longer may cost more total.
$
All costs to refinance: origination fee, early repayment penalty, admin charges.
›
Whether fees are paid separately or added to the new loan principal.
$
Penalty charged by current lender for paying off the loan early. Separate from other fees.
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Calculating...
Net Interest Saved by Refinancing
—
after all fees and charges
Monthly Payment Change
—
per month
Fee Break-Even Point
—
months to recover fees
New Monthly Payment
—
refinanced loan payment
Current Monthly Payment
—
existing loan payment
Time to Payoff Change
—
months
📈 Keep Current Loan
Remaining balance—
Interest rate—
Monthly payment—
Remaining interest—
Total cost remaining—
Months remaining—
🔄 After Refinancing
New loan principal—
New interest rate—
New monthly payment—
Total interest (new loan)—
Fees + ERC—
Total cost (P + I + fees)—
Full Calculation Breakdown
Current remaining balance—
Current rate—
Current monthly payment—
Remaining interest (current loan)—
New loan principal (incl. rolled fee)—
New rate—
New monthly payment—
Total interest on new loan—
Upfront fees + ERC—
Gross interest saved—
Net saving after all fees—
Monthly payment saving—
Break-even point—
Cumulative Savings Over Time
Month
Cumulative payment saving
Fees recovered
Net position
Status
Remaining Balance: Current vs Refinanced
Current loan
Refinanced loan
✦ Cal, AI Explanation
Cal is reviewing your refinance comparison...
💬 Ask Cal about your refinance decision
Cal
Your refinance comparison is ready. Ask me whether a shorter or longer term is better, how an early repayment charge changes the decision, or what happens if you plan to sell before the break-even point.
🔄 Refinance decision guide
A lower rate only saves money if the term does not extend so much that total interest rises
Fees and early repayment charges can wipe out months of interest savings
The break-even point is the minimum time you must keep the new loan to profit from refinancing
If you plan to sell or pay off early, refinancing may cost more than it saves
Rolling fees into the loan means you pay interest on the fee amount for the full new term
Refinancing replaces your current loan with a new one at a different rate, term, or both. This calculator compares the total remaining cost of your existing loan against the full cost of the new loan including all fees and any early repayment charge. The true saving is the difference after every cost is accounted for.
The formulas
Current monthly payment: M = P × [r(1+r)^n] / [(1+r)^n − 1]
Remaining interest (current) = M × months_left − remaining_balance
New loan total interest = new_M × new_term − new_principal
Gross saving = remaining_interest_current − new_loan_interest
Net saving = gross_saving − fees − ERC
Break-even = total fees / monthly payment saving. You must keep the new loan beyond this point to profit from refinancing.
When refinancing makes sense
Rate reduction on same or shorter term almost always saves money. The interest reduction per month accumulates faster than fees are incurred. Rate reduction on a longer term often lowers the monthly payment but increases total interest paid. Always check the net saving, not just the monthly saving.
Scenario
Rate lower
Term
Fees
Verdict
Best case
Yes
Same or shorter
None
Almost always saves
Typical
Yes
Same
Moderate
Check break-even
Risky
Marginally lower
Much longer
Significant
May cost more total
Bad deal
No / higher
Longer
Any
Always costs more
Frequently Asked Questions
Does refinancing always save money if the new rate is lower?+
No. A lower rate saves money on interest per month, but extending the term can more than offset the rate saving. A loan at 8% over 3 remaining years may cost less in total than refinancing to 6% over 5 years, even though the rate is lower, because you pay for two extra years. This calculator shows both the monthly saving and the total net saving, so you can judge whether the rate reduction genuinely benefits you over the full term.
What is the break-even point and why does it matter?+
The break-even point is the number of months it takes for your monthly payment savings to cover the total cost of refinancing (fees plus early repayment charge). Before that month, you are still in deficit from the refinancing costs. After it, every month generates net savings. If you plan to sell an asset, pay off the loan early, or move lender before the break-even point, refinancing will cost you money rather than save it.
Should I roll fees into the new loan or pay them upfront?+
Paying upfront is almost always cheaper if you have the cash. Rolling fees into the loan means you pay interest on the fee amount for the full new term. On a $500 fee rolled into a loan at 6% over 48 months, you pay approximately $63 extra in interest on that fee alone. However, if paying upfront strains your cash flow significantly, rolling fees in may be acceptable. This calculator models both options so you can compare the true cost difference.
How do early repayment charges affect the decision?+
An early repayment charge (ERC) is a penalty paid to the current lender for settling the loan ahead of schedule. It is added to the total cost of refinancing alongside any new loan fees. A significant ERC can make refinancing uneconomical even when the new rate is substantially lower. The calculator adds the ERC to fees when computing the net saving and break-even point, giving you an accurate picture of the true transition cost.
How is refinancing different from debt consolidation?+
Refinancing replaces a single existing loan with a new loan on better terms. Debt consolidation combines multiple debts into one loan. Both involve taking new borrowing to settle existing debt, and both require checking that the total cost including fees is genuinely lower than continuing with the existing arrangement. The key distinction is scope: refinancing is one-to-one, consolidation is many-to-one. Use the Debt Consolidation Calculator if you have multiple debts to combine.
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