How it works
Compare costs from today onward. The current schedule is reconstructed from your balance, contract rate and remaining months. Enter the proposed rate and term separately. Fees added to the loan increase both principal and the interest charged on it. Fees paid upfront and any old-loan prepayment charge are added once to future cash paid.
The main result compares complete future cash payments, including fees. Break-even compares cumulative interest saved with all refinance fees, including fees financed in the new principal. This recognizes that principal repaid creates equity rather than treating every lower payment as a saving. It reports the first crossing; if terms differ, later interest can reverse that advantage. Always compare full-term totals as well.
The formula behind the estimate
Every result starts with a defined model and visible assumptions.
Current future cost = remaining current-loan payments New principal = current balance + financed refinance fees Refinance future cost = new loan payments + upfront fees + old-loan prepayment charge Total savings = current future cost − refinance future cost Financing-cost break-even = first month cumulative interest saved covers all refinance fees.
A worked example
At 0%, a balance of 12,000 over 12 remaining months requires 1,000 per month and 12,000 of future cash. A new 12-month 0% loan with 120 of financed fees requires 1,010 per month and costs 12,120. Refinancing costs 120 more and never recovers its fees through interest savings. This example isolates fees without implying an available offer.
Why a lower payment can cost more
A longer replacement term can lower the payment while leaving debt outstanding longer. The extra months can offset a lower rate. This calculator compares the full remaining life of each loan, not the same number of payments or just the change in payment. Sunk costs already paid on the current loan are excluded.
Break-even with the remaining balance in view
For each month, the model compares cumulative interest under each schedule plus the refinance fees. Adding outstanding principal to cash already paid produces the same financing-cost difference, apart from rounding. It does not divide fees by the payment reduction, which can confuse slower principal repayment with actual savings. There is no discounting, opportunity-cost adjustment or assumption of future refinancing.
What currency selection means
Use consistent local-currency amounts in USD, PKR, INR, GBP, CAD, AUD, AED or EUR. Currency selection does not infer eligibility, lender fees or national rules. Terms must describe a conventional fixed-rate monthly reducing-balance loan. Obtain local advice for other contract structures and verify the settlement process with both lenders.
Questions worth asking
Are financed fees counted twice?
No. They are included in new principal and therefore in total new payments. The table displays them separately for clarity but does not add them again to total future cash.
Why is there no break-even month?
The modeled cumulative interest saving never covers the entered fees over the two schedules. Check the full-term cost, rate, fees and term.
Can I compare a longer replacement term?
Yes. Compare the total future cash result and the remaining months as well as the payment reduction. A longer term can increase total costs.
Should I enter APR as the contract rate?
Use the interest rate charged on outstanding principal. APR can include fees. Using APR and then adding the same fees can overstate borrowing costs.
Does this quote a refinance rate for my country?
No. Enter a written lender offer in your selected currency. No current rates, country-specific eligibility or approval claims are provided.
This is general information, not personalized financial advice. Read the limitations.
