Refinance Calculator
| Current | Refinance | |
|---|---|---|
| Monthly Payment | ₹0 | ₹0 |
| Total Interest | ₹0 | ₹0 |
| Total Payments | ₹0 | ₹0 |
| Interest Savings | ₹0 | |
| Break-Even Point | — |
| Months to Break Even | — |
| Net Savings (after costs) | ₹0 |
| Loan Balance (new) | ₹0 |
| Status | — |
| Year | Current Payment | Refi Payment | Current Balance | Refi Balance |
|---|
What Is a Refinance Calculator?
A Refinance Calculator helps you compare your current mortgage with a potential new loan. By entering your current loan balance, interest rate, remaining term, and the new loan's rate, term, and closing costs, you can see the impact on your monthly payment, total interest, break‑even point, and overall savings. This tool is essential for homeowners deciding whether refinancing is a smart financial move.
How to Use This Refinance Calculator
- Enter your Current Loan Details: balance, interest rate, and remaining term (in years).
- Enter your Refinance Proposal: new interest rate, new loan term (could be different from remaining term), and estimated closing costs.
- Click Calculate to see a side‑by‑side comparison of payments, total interest, and a clear break‑even analysis.
You can adjust any number to see how a lower rate or different term affects your savings and break‑even timeline.
How the Calculation Works
- Monthly Payments are computed using the standard loan amortization formula for both the current and new loans.
- Total interest is the sum of all interest payments over the remaining life of each loan.
- Break‑even point is the number of months it takes for the monthly savings to cover the closing costs. It's calculated as: Closing Costs ÷ (Current Monthly Payment – New Monthly Payment).
- Net Savings = (Total Interest on Current Loan – Total Interest on New Loan) – Closing Costs.
- The comparison table shows year‑by‑year (or month‑by‑month) payments and balances for both scenarios.
How to Print or Save This Calculation as a PDF
- Enter your numbers and click Calculate.
- Click the Print link at the top of the page.
- In the print dialog, choose "Save as PDF" as the destination.
- Ensure "Background graphics" is enabled so charts and colours print correctly.
- Click Save — the full comparison and summary will be included.
Frequently Asked Questions
When does refinancing make sense?
Refinancing makes sense when you can lower your interest rate by at least 0.5–1%, reduce your monthly payment, shorten your loan term, or switch from an adjustable rate to a fixed rate. You also need to plan to stay in the home long enough to recoup the closing costs.
What is the break-even point in refinancing?
The break-even point is the number of months it takes for your monthly savings from a lower payment to cover the closing costs of the new loan. If you plan to stay past this point, refinancing is beneficial.
How do closing costs affect refinancing?
Closing costs are fees you pay when getting a new mortgage. They typically range from 2–5% of the loan amount. This calculator factors them in to show your true net savings and break-even time.
Is this refinance calculator free?
Yes, this calculator is completely free, requires no sign-up, and can be used as many times as you need to evaluate different refinance scenarios.