ClarityHow to use this tool
- Enter current outstanding balance, current annual interest rate, remaining months, new annual interest rate, new term in months, upfront refinancing costs.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Current outstanding balance | Numeric value. Unit: money. Zero or positive. | 200000 |
| Current annual interest rate | Numeric value. Unit: %. Zero or positive. Maximum: 100. | 7 |
| Remaining months | Whole numbers only. Minimum: 1. Maximum: 600. | 240 |
| New annual interest rate | Numeric value. Unit: %. Zero or positive. Maximum: 100. | 5 |
| New term in months | Whole numbers only. Minimum: 1. Maximum: 600. | 240 |
| Upfront refinancing costs | Numeric value. Unit: money. Zero or positive. | 4000 |
Result for these sample inputs
230.686393 currency units
- Current monthly payment
- 1550.59787
- New monthly payment
- 1319.91148
- Old remaining total payments
- 372143.489
- New total payments plus costs
- 320778.755
- Simple break-even
- 18 months
Monthly cash-flow saving. Extending the term may lower the payment while increasing total cost.
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Compute both amortizing monthly payments on the same balance. Monthly saving = old payment − new payment. Simple cash-flow break-even = upfront costs / positive monthly saving. Compare total remaining payments, including new costs, separately.
Using current outstanding balance = 200000 money, current annual interest rate = 7 %, remaining months = 240, new annual interest rate = 5 %, new term in months = 240, upfront refinancing costs = 4000 money, the result is 230.686393 currency. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
No cash-out or financed closing costs. The simple break-even ignores differing balances, tax effects and opportunity cost. It is not an economic recommendation. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.
Methodology maintained by ClarityKit. How these tools are built and checked.