Refinance break-even
Refinance break-even: use remaining principal, current nominal annual rate, new nominal annual rate. Review the formula, worked example and calculation steps.
Inputs
Use the units shownEnter your values and select Calculate.
Formula & explanation
Variables & units
- Remaining principal
- currency · minimum 0.01, maximum 1000000000000
- Current nominal annual rate
- % · minimum 0, maximum 100
- New nominal annual rate
- % · minimum 0, maximum 100
- Number of monthly payments
- months · minimum 1, maximum 600
- Refinancing costs paid upfront
- currency · minimum 0, maximum 1000000000000
Worked example
With no refinancing costs and a lower rate, the payment-savings break-even is immediate.
Assumptions
Compares the same remaining term, principal and fixed monthly payment model. Excludes changes in tax, insurance and the time value of upfront costs.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
Use the default input values to find the answer. The reset icon restores those values.
Calculated on your device. Your latest 100 calculations stay in this browser.