Finance

Refinance Savings Calculator

Compare an old mortgage payment with a new one to estimate monthly and total savings.

A positive monthly saving means the new payment is lower than the old payment, and the break-even figure shows how many months of that saving repay the closing costs.

Formula

Each payment uses the amortising formula; monthly saving is old minus new, and break-even months are closing costs divided by monthly saving.

How it works

Refinancing can lower the monthly payment while extending the term, which may raise total interest — check both monthly saving and total cost, plus how long you will stay.

Worked example

For example, a $250,000 balance at 7.5% over 25 years gives an old payment of $1,847.48, while 5.5% over 30 years gives a new payment of $1,419.47, so the monthly saving is $428.01 and the $4,000 closing costs break even after 9.3 months.

FAQs

What is break-even?
How many months of savings repay the closing costs.

Can a lower payment cost more overall?
Yes, if the new term is much longer.

Should fees be rolled into the loan?
That raises the balance — compare that option separately.

Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.

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