Calculator Inputs
Example Data Table
These sample scenarios show how rate, fees, term length, and cash-out choices can change payment, break-even timing, and loan-to-value.
| Scenario | Estimated New Payment | Monthly Savings | Break-Even | Estimated LTV |
|---|---|---|---|---|
| Lower rate with financed costs | $1,856.09 | $-22.07 | N/A | 80.31% |
| Shorter term with no cash-out | $2,397.30 | $-334.76 | N/A | 69.51% |
| Cash-out refinance example | $1,638.03 | $-32.44 | N/A | 54.67% |
Formula Used
The calculator uses the standard fixed-rate mortgage payment formula. Monthly rate equals annual rate divided by twelve and then divided by one hundred.
Monthly Payment = P × r × (1 + r)n ÷ ((1 + r)n - 1)
Here, P is the refinance loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Points cost equals the selected points percentage multiplied by the current balance plus any cash-out amount. If you roll costs into the loan, those fees are added to the refinance principal. Break-even months equal upfront out-of-pocket costs divided by monthly savings when savings are positive.
How to Use This Calculator
Enter your property value, current balance, current rate, and remaining term first. Then enter the refinance rate and the new loan term.
Add expected closing costs, any discount points, and any cash-out amount. Check the financing option if you want fees rolled into the new balance.
Submit the form to review the updated payment, savings, break-even timing, projected interest, and estimated loan-to-value. Use the graph to compare cash outlay over time, and download the schedule in CSV or PDF format for planning.
Why This Refinance Comparison Helps
Refinancing is not only about chasing a lower rate. Fees, points, new term length, and cash-out changes can all alter the final result. A lower payment may look attractive, but a longer term can raise total interest. Financing costs into the new balance can also reduce cash needed today while increasing debt over time. This calculator helps you compare those tradeoffs in one place. You can test rate changes, timing, and cost structure before speaking with a lender or reviewing formal disclosures.
Use the break-even estimate to see how long it may take to recover cash expenses. Review the interest comparison to understand whether the refinance improves long-term cost or only short-term cash flow. The loan-to-value estimate is also useful because many pricing changes depend on equity position. Together, these figures can help you decide whether refinancing supports your payment goals, payoff goals, or cash-access needs.
FAQs
1. What does this refinance calculator estimate?
It estimates the new monthly payment, monthly savings, break-even timing, projected interest, updated loan amount, and approximate loan-to-value after refinancing.
2. Does the calculator use live lender rates?
No. It uses the refinance rate you enter. That makes it useful for testing different scenarios before comparing lender offers.
3. What happens when I roll costs into the loan?
Closing costs and points are added to the refinance balance. This lowers upfront cash needed, but it usually increases the loan amount and long-term interest.
4. Why can a lower rate still cost more overall?
A longer term or financed fees can offset the rate benefit. Lower payments do not always mean lower total cost.
5. How is break-even timing calculated?
It divides upfront out-of-pocket refinance costs by monthly payment savings. If savings are not positive, there is no standard break-even result.
6. Should I include cash-out in the calculation?
Yes, if you plan to borrow extra equity. Cash-out raises the new loan amount and can change payment, interest, and loan-to-value.
7. Is property value required?
It is used for the loan-to-value estimate. The main payment calculation still works without it, but the equity view becomes less useful.
8. Can I export the refinance schedule?
Yes. After calculating, use the CSV or PDF buttons to download the refinance amortization schedule and summary values.