Refinancing Calculator
Compare your current loan with a new one to see the savings and the break-even point.
Tip: Refinancing pays off when the new rate is at least 1% lower — but also count the closing costs.
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About this digital tool
The refinancing calculator compares your current loan with a new one to see whether switching is worthwhile. Enter the remaining balance, rate and term of your current loan, then the rate, term and costs of the new loan (fees, closing charges). The tool calculates the new payment, the monthly saving and the break-even point: after how many months the savings cover the cost of refinancing.
It is useful for people with a mortgage or personal loan who see lower rates on the market. Be careful: extending the term can lower the payment but raise total interest. The result is an estimate; check your contract for early repayment penalties and ask the bank for the real terms.
How to use
- Enter the details of your current loan (balance, rate, remaining payments).
- Enter the details of the new loan (rate, term, closing costs).
- See the monthly saving, the total saving and the break-even point.
Frequently asked questions
When is refinancing worthwhile?
When the new rate is low enough to cover the closing costs. Quick rule: if the rate drops by at least 1% and you plan to keep the loan for 3+ years.
What does refinancing cost?
Common costs: bank fee (0.5–2% of the amount), notary, property valuation, insurance. The new savings must cover these.
How do I know if refinancing is worth it for me?
Compare the monthly saving with the refinancing costs. If the break-even point comes before you plan to repay the loan or sell the property, refinancing usually makes sense.
What is the break-even point in refinancing?
It is the number of months it takes for the savings from lower payments to equal the costs paid for the new loan. After that point, every month brings a net saving.
Can I refinance with the same bank?
Often yes, and some banks offer softer terms to existing customers. Still, compare offers from several banks and ask about penalties or closing fees on the old loan.