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Loan Refinance Break-Even Calculator

Math

Compare a current loan's remaining payments against a new refinanced loan's rate, term, and closing costs, and compute the monthly savings and the break-even month where cumulative savings recoup the closing costs

Enter your current loan's remaining balance, rate, and months left, alongside a new refinanced loan's rate, term, and closing costs, and see whether refinancing is actually worth it. It amortizes both loans on the same outstanding balance using the standard fixed-rate loan formula, the same math the Loan / Mortgage Calculator uses, then compares the two monthly payments to find the break-even month where cumulative monthly savings recoup what you'd pay in closing costs. It also reports each loan's remaining total interest side by side, so a lower monthly payment that actually costs more over the life of the loan doesn't get missed.

financeloanmortgagerefinancebreak-evencalculator

How to use Loan Refinance Break-Even Calculator

  • 1.Enter your current loan's remaining balance, annual interest rate, and months left on the loan.
  • 2.Enter the new loan's annual interest rate, term, and the total closing costs to refinance.
  • 3.Read off the monthly savings and the break-even month, then compare total remaining interest between the current and refinanced loan.

Frequently asked questions

What counts as the break-even month?
The number of months of monthly savings it takes to fully recoup the closing costs. If you plan to keep the loan (or stay in the home) past that point, refinancing pays for itself; if you'd sell or pay it off sooner, it might not.
What happens if the new loan doesn't actually save money each month?
The break-even month comes back as null, since there's no monthly savings to recoup the closing costs against. This can happen with a higher new rate or a much shorter new term, even if the new rate itself is lower.
Does this account for cashing out equity or rolling closing costs into the loan?
No, it assumes the new loan's principal equals the current loan's remaining balance exactly, and that closing costs are paid separately rather than financed. A cash-out refinance or rolled-in costs would need a different principal amount entered by hand.
Why do the two loans' total interest numbers cover different time periods?
Each side reports the total interest remaining to pay off that specific loan on its own term, which isn't always the same number of months. It's a useful lifetime-cost comparison, but it isn't apples-to-apples if the two term lengths differ significantly.

Use via API, SDK, or MCP

cURL# Free: 1,000 req/day · Pro: 10,000 req/day
curl -X POST https://api.utilix.tech/v1/tools/loan-refinance-calculator \
  -H "Authorization: Bearer utx_live_..." \
  -H "Content-Type: application/json" \
  -d '{"currentBalance":300000,"currentRatePercent":6.5,"currentRemainingMonths":300,"newRatePercent":5.5,"newTermMonths":300,"closingCosts":6000}'

Get an API key from your dashboard · Full API docs →

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