Rug Installation Cost Calculator

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Mortgage Refinance Savings Calculator

Calculate your monthly savings and break-even point

30 Years Fixed 20 Years Fixed 15 Years Fixed 10 Years Fixed
New Monthly Payment
$0.00
Monthly Savings
$0.00
Break-Even Point
0 Months
Total Life Interest Savings
$0.00

Should You Refinance Your Mortgage?

Deciding to refinance involves more than just looking at a lower interest rate. You must consider the closing costs and how long you intend to stay in the home. This calculator helps you determine the "Break-Even Point"—the moment where your monthly savings have officially covered the upfront costs of the new loan.

Understanding the Results

  • Monthly Savings: The difference between your old Principal and Interest (P&I) payment and the new one.
  • Break-Even Point: If your closing costs are $5,000 and you save $200 a month, it will take 25 months to recover your costs. If you move before then, refinancing may cost you money.
  • Total Interest Savings: This estimates how much less interest you will pay over the full life of the new loan compared to the current trajectory.

Example Scenario

Imagine you have a $300,000 balance on a loan at 6.5%. Your monthly payment is roughly $1,896. If you refinance to a new 30-year loan at 4.5% with $6,000 in closing costs:

  • Your new payment drops to $1,520.
  • You save $376 per month.
  • Your break-even point is approximately 16 months.
function calculateRefinance() { var balance = parseFloat(document.getElementById('loanBalance').value); var currentPay = parseFloat(document.getElementById('currentPayment').value); var newRate = parseFloat(document.getElementById('newRate').value); var newTerm = parseInt(document.getElementById('newTerm').value); var costs = parseFloat(document.getElementById('closingCosts').value); if (isNaN(balance) || isNaN(currentPay) || isNaN(newRate) || isNaN(costs)) { alert("Please enter valid numbers in all fields."); return; } // Monthly interest rate var r = (newRate / 100) / 12; // Total number of payments var n = newTerm * 12; // Monthly Payment Formula: P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ] var newPayment = balance * (r * Math.pow(1 + r, n)) / (Math.pow(1 + r, n) – 1); var monthlySavings = currentPay – newPayment; var breakEven = costs / monthlySavings; // Total interest estimation (assuming full term) var totalNewCost = (newPayment * n) + costs; // This is a simplified comparison of remaining P&I payments var totalSavings = (currentPay * n) – totalNewCost; // Update Display document.getElementById('newMonthlyPayment').innerText = "$" + newPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlySavings').innerText = "$" + monthlySavings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); if (monthlySavings 0 ? totalSavings.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}) : "0"); document.getElementById('refiResults').style.display = "block"; }

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