Compare loan terms, costs, and monthly savings clearly. Review fees, balances, rates, and break-even timing. See refinance impact before signing any commercial lending agreement.
| Item | Sample Value | Meaning |
|---|---|---|
| Original Loan Amount | $850,000 | Starting principal before payments. |
| Current Rate | 8.25% | Existing annual borrowing rate. |
| Years Paid | 5 | Completed part of original term. |
| New Rate | 6.65% | Quoted refinance interest rate. |
| Closing Costs | $18,000 | Fees added or paid at closing. |
| Prepayment Penalty | $12,000 | Charge for early payoff. |
Monthly payment: Payment = P × [r(1+r)n] ÷ [(1+r)n - 1]
Remaining balance: Balance = P(1+r)m - A × {[(1+r)m - 1] ÷ r}
Monthly savings: Current total monthly cost - new total monthly cost.
Break-even months: (Closing costs + prepayment penalty) ÷ monthly savings.
Lifetime savings: Total remaining current cost - total refinance cost.
Here, P is principal, r is monthly interest rate, n is payment count, m is payments already made, and A is monthly payment.
It estimates your remaining current balance, new payment, refinance cost, interest impact, monthly savings, and break-even period using commercial lending inputs.
Yes. Closing costs are included in the new refinance principal and also used in the break-even calculation.
Break-even time is the number of months required for monthly savings to recover refinance costs and any prepayment penalty.
Yes. Add the desired cash-out amount. The calculator includes it in the new principal and payment estimate.
Yes. Enter the expected balloon amount. The calculator reduces amortized principal and adds the balloon to total refinance cost.
A shorter term, high fees, extra cash out, or heavy penalties can raise the new monthly cost above the current loan cost.
No. It is an estimate tool for planning. Actual lender offers may differ because of underwriting, collateral, risk, and document fees.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.