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.
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.
Rate reduction on same or shorter term almost always saves money. 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. The break-even point is the minimum time you must keep the new loan to profit — if you plan to sell or pay off early before that point, refinancing will cost you money.
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.
The break-even point is the number of months it takes for your monthly payment savings to cover the total cost of refinancing. Before that month you are still in deficit from the refinancing costs. After it, every month generates net savings. If you plan to sell, pay off early, or move lender before the break-even point, refinancing will cost you money rather than save it.
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.
An early repayment charge 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.