Loan Refinance Calculator
Refinancing means replacing your current loan with a new one at a lower rate or different tenure. Enter both loans to compare monthly payments, find the break-even month and see the total net benefit before you decide.
How to use
- Enter your current balance, rate and remaining months.
- Enter the new loan rate, term and all fees.
- See the monthly saving and break-even month — the fees are recovered in that many months of saving.
- If the net benefit is negative, do not refinance, even if the rate is lower.
Note
A longer new term lowers the monthly payment but can increase total interest — that is why the net benefit line is on the total of the term, not only the installment.
Frequently Asked Questions (FAQ)
What does the loan refinance calculator do?
It compares your current loan with a new lower-rate loan and shows the monthly saving, the break-even month and the total net benefit over the new term.
What is the break-even month?
The number of months of monthly saving it takes to recover the refinance fees or closing costs.
Should I refinance if the net benefit is negative?
No. Even with a lower rate, refinancing is not worth it if the net benefit over the term is negative.
Does a longer new term always help?
No. A longer term lowers the monthly payment but can increase total interest, which is why the calculator shows the net benefit over the full term.