Finance
Calculator for refinancing
Compare your current mortgage and new loan side by side: monthly payment, total interest, break-even month and whether refinance go pay off before you move.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
New monthly payment
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Compare dem side by side
| Current loan | New loan | Difference | |
|---|---|---|---|
| Payment every month | — | — | — |
| Total interest | — | — | — |
| Total wey you pay | — | — | — |
| Loan term | — | — | — |
Total interest for current loan dey count only the term wey remain, no be interest wey you don already pay.
All the interest, for quick look
We scale bars to the bigger total. Lower payment still fit mean more total interest if the new term longer — check the result message above.
Savings wey gather over time
| After | Savings compared with keeping the old loan |
|---|
Cumulative saving dey count only months when you still dey repay both loans. Once either loan end, the comparison go change. You recover closing costs when cumulative saving pass dem — na that month be break-even point.
Formula
Monthly payment = balance × monthly rate × (1 + monthly rate)payments ÷ [(1 + monthly rate)payments − 1]. Break-even months = closing costs ÷ monthly saving. Total interest = monthly payment × payments − balance.
Example wey show the calculation
Balance $300,000, current 7% with 20 years left: payment $2,325.90. New 5% for 20 years: payment $1,979.87, saving $346.03/month. With $4,000 closing costs, break-even na $4,000 ÷ $346.03 = 11.56 months. Total interest dey fall from $258,215.23 to $175,168.13 — saving of $83,047.10 — and break-even dey happen well before the 10-year stay end. For these inputs, the refinance dey pay off.
Where e fit work and limits
Both loans get fixed rates; no fees dey apart from closing costs wey you enter, no cash-out dey, and balance no change during refinancing. We no include taxes, insurance, HOA dues or private mortgage insurance. Longer new term fit lower payment but raise total interest — the comparison table dey show that trade-off directly. We no model rate changes, points wey you buy outside closing costs or tax effects.
Questions wey people dey ask often
Lower payment always mean say I gain?
No. If you extend term, monthly payment fit reduce but you go add years of interest. Compare total interest as well as monthly payment — the table above dey show both.
Wetin break-even mean?
Na the month when cumulative monthly savings first cover closing costs. If you move or refinance again before break-even, the refinance fit never pay off.
What if I move before savings cover costs?
Then savings no go repay closing costs before you move. Enter how long you plan to stay above; the result message dey check am for you. E go flag refinance wey break even after your move, even if monthly saving look good.
Refinancing dey start my repayment term afresh?
Yes, unless new term match the term wey remain. New 20-year loan for mortgage wey get 20 years left go keep the date; new 30-year loan go push am out by 10 years. Na that usually make total interest rise even when monthly payment lower.
I suppose include points?
Yes, put dem inside closing costs. Points dey buy lower rate, so dem belong for break-even calculation, no be separate saving.
This one cover rates wey fit change?
No. E assume new rate stay fixed for the whole new term. If the new rate fit change, the saving and break-even figures dey valid only until the first adjustment.
Other tools wey relate to dis
- Calculator for loan repayment — payment, interest split and yearly schedule for one loan
- Calculator for mortgage repayment — the usual mortgage calculation to buy house
- Calculator for early loan repayment — pay extra every month instead of refinancing
Results na estimates; dem no replace advice from qualified professional.