401(k) Loan Calculator
Calculate 401(k) loan repayment, interest paid back to yourself, and the opportunity cost of lost market returns. See the true cost of borrowing from retirement.
Refinance Calculator
Calculate mortgage refinance savings, break-even point, and lifetime cost comparison. Includes rate sensitivity, cash-out analysis, and balance projection.
$
%
yrs
%
yrs
$
$
Current Payment⧉
$2,403.05
7.0% for 25 yrs
New Payment⧉
$1,964.55
5.5% for 30 yrs
Monthly Savings⧉
$438.50
$5,262.00/yr
Break-Even⧉
14 months
1.2 years
Lifetime Savings⧉
$13,677.00
Total cost difference
New Loan Balance⧉
$346,000.00
Including closing costs + cash-out
✓ Refinancing looks favorable
Rate Sensitivity
| New Rate | Payment | Monthly Savings | Break-Even |
|---|---|---|---|
| 4% | $1,652.00 | $751.00 | 8 mo |
| 4.5% | $1,753.00 | $650.00 | 10 mo |
| 5% | $1,857.00 | $546.00 | 11 mo |
| 5.5% | $1,965.00 | $438.00 | 14 mo |
| 6% | $2,074.00 | $329.00 | 19 mo |
| 6.5% | $2,187.00 | $216.00 | 28 mo |
Balance Comparison
| Year | Current Balance | New Balance | Current Interest | New Interest |
|---|---|---|---|---|
| 1 | $334,799.00 | $341,339.00 | $23,635.00 | $18,914.00 |
| 2 | $329,221.00 | $336,415.00 | $23,259.00 | $18,651.00 |
| 3 | $323,241.00 | $331,214.00 | $22,856.00 | $18,373.00 |
| 4 | $316,828.00 | $325,719.00 | $22,424.00 | $18,080.00 |
| 5 | $309,951.00 | $319,914.00 | $21,960.00 | $17,770.00 |
| 6 | $302,578.00 | $313,781.00 | $21,463.00 | $17,442.00 |
| 7 | $294,671.00 | $307,303.00 | $20,930.00 | $17,096.00 |
| 8 | $286,193.00 | $300,459.00 | $20,358.00 | $16,731.00 |
| 9 | $277,102.00 | $293,229.00 | $19,746.00 | $16,345.00 |
| 10 | $267,354.00 | $285,592.00 | $19,088.00 | $15,937.00 |
Planning notes, formulas, and examples
About the Refinance Calculator
Refinancing replaces your existing mortgage with a new loan. The core question is whether the lower payment or different term justifies the new closing costs and any reset of the amortization schedule.
This calculator compares the current and proposed loan structures, estimates the monthly savings, and calculates a break-even point based on the closing costs you enter. It also shows how changing the new rate changes the payoff economics.
The result is a refinance worksheet, not a lender quote. Final costs depend on the actual Loan Estimate, rate lock, term, and whether the refinance rolls fees or cash-out proceeds into the new balance.
When This Page Helps
Refinancing only works when the savings survive the closing costs and any longer term. This calculator quantifies break-even, lifetime savings, and balance trajectory so you can decide with the full cost picture.
How to Use the Inputs
- Enter your current loan balance, rate, and remaining years.
- Input the proposed new rate and loan term.
- Add estimated closing costs (typically 2-5% of loan).
- If taking cash out, enter the cash-out amount.
- Review monthly savings and break-even period.
- Check the verdict box for a quick recommendation.
- Use the rate sensitivity table to negotiate with lenders.
Formula used
Monthly Savings = Current Payment − New Payment. Break-Even = Closing Costs / Monthly Savings (months). Lifetime Savings = (Current Total Cost) − (New Total Cost). New Loan Balance = Current Balance + Closing Costs + Cash-Out.Example Calculation
Result: Monthly savings: $429 — Break-even: 14 months — Lifetime savings: $72,980
Refinancing from 7.0% to 5.5% saves $429/month. With $6,000 in closing costs, break-even is reached in just 14 months. Over the full loan life, total savings are $72,980. The verdict: clearly favorable if you plan to stay in the home beyond 14 months.
Tips & Best Practices
- A shorter break-even period reduces the time you need to keep the new loan for the refinance to make sense on cash-flow grounds.
- Get quotes from at least 3 lenders — rate differences of 0.125-0.25% are common and significantly affect savings.
- Ask about no-closing-cost refinance options — the rate is slightly higher but there is zero break-even period.
- Avoid extending your term if you are already far into the loan — it resets your amortization and may cost more long-term.
- Cash-out refinancing increases your loan balance — factor in the additional interest over the full term.
- Lock your rate once you find a favorable one — rates can change daily during the 30-45 day closing process.
Refinance Check
Compare the new payment against closing costs, the remaining term, and any cash-out amount before deciding whether the refi actually improves your position.
Timing And Term
A short break-even period only matters if you plan to stay in the home long enough to capture it. Avoid extending the term unless the lower monthly payment is the main goal and the lifetime cost still makes sense.
Sources & Methodology
Last updated:
Methodology
This worksheet compares the current loan's payment path with a replacement loan using the new rate, term, closing costs, and optional cash-out amount entered by the user. It calculates monthly payment differences, a simple break-even period, and total cost comparisons under those assumptions.
It is a scenario model, not a refinancing recommendation. The actual decision depends on the lender's Loan Estimate, how fees are financed, how long you expect to keep the loan, and whether the new loan changes the risk profile of the debt.
Sources
- Should I refinance? (Consumer Financial Protection Bureau) — Consumer refinance worksheet covering break-even analysis and closing costs.
- Compare and negotiate your loan offers (Consumer Financial Protection Bureau) — How to compare mortgage offers and review the Loan Estimate comparison section.
- Request and review multiple Loan Estimates (Consumer Financial Protection Bureau) — Mortgage-shopping guidance for evaluating refinance disclosures.
Frequently Asked Questions
The key test is whether the payment savings, loan structure, and break-even period fit how long you expect to keep the new loan. Rate reduction matters, but so do closing costs, term reset, cash-out, and whether the refinance changes the risk of the debt.
Closing costs typically range from 2-5% of the loan amount. For a $300K loan, expect $6K-$15K. This includes appraisal ($300-600), title insurance, origination fees, credit report, recording fees, and other charges. Some lenders offer "no-cost" refinancing by rolling costs into the rate.
If you refinance into a new 30-year loan, yes — the amortization resets. This means more total interest even at a lower rate. To avoid this, refinance into a shorter term (20 or 15 years) or continue making your old payment amount on the new loan to pay it off faster.
Refinancing causes a temporary credit score dip (5-10 points) from the hard inquiry and new account. Your score typically recovers within 3-6 months. If you apply to multiple lenders within a 14-45 day window, credit bureaus count it as a single inquiry for scoring purposes.
Only if the use of funds generates a return higher than the mortgage rate (e.g., debt consolidation from 20%+ credit cards) or is truly necessary (home repairs, education). Using home equity for discretionary spending is risky. The calculator shows the additional cost of cash-out versus a standard refinance.
Typically 30-45 days from application to closing. The process includes application, credit/income verification, appraisal, underwriting, and closing. Rate locks are usually available for 30-60 days. Some lenders offer streamlined refinancing (like FHA Streamline) that can close in 2-3 weeks.
More in this topic
Amortization Calculator
Calculate loan amortization schedules showing monthly payment breakdown of principal, interest, extra payments, and remaining balance over time.
APR Calculator
Calculate the Annual Percentage Rate (APR) for any loan including fees, points, and closing costs to reveal the true cost of borrowing.