Calculator Inputs
Example Data Table
| Item | Balance | APR | Months Left | Estimated Payment |
|---|---|---|---|---|
| Credit Card 1 | $12,000.00 | 21.50% | 36 | $453.51 |
| Personal Loan | $8,500.00 | 13.20% | 30 | $328.02 |
| Store Card | $4,300.00 | 24.90% | 24 | $229.39 |
| Sample Refinance | $24,800.00 | 10.50% | 48 | $635.72 |
This sample shows how several higher-rate debts can be compared against one refinanced loan using the same balance base.
Formula Used
1) Monthly payment formula
Payment = (r × PV) / (1 - (1 + r)^-n)
Where:
r= monthly interest rate = annual rate ÷ 12 ÷ 100PV= present loan balance or principaln= number of remaining monthly payments
2) Weighted current APR
Weighted APR = Sum(balance × APR) / Sum(balance)
3) Current projected total outlay
Total Outlay = Total Balance + Remaining Interest
4) Refinance projected total outlay
Total Outlay = New Payment × New Term + Upfront Fees
5) Monthly savings
Monthly Savings = Current Combined Payment - Refinance Payment
6) Break-even period
Break-even Months = Closing Costs ÷ Monthly Savings
How to Use This Calculator
- Enter each current debt with its balance, APR, and remaining months.
- Add more rows if you want to include extra loans or cards.
- Enter the proposed refinance APR, refinance term, and fees.
- Choose whether the fees will be paid upfront or rolled into the new loan.
- Add monthly income if you want payment-to-income insight.
- Press Calculate Refinance to show the result above the form.
- Review monthly payment change, break-even time, payoff timing, and total projected savings.
- Use the CSV and PDF buttons to export the summary.
Frequently Asked Questions
1) What does this calculator compare?
It compares all entered debts against one new refinance loan. It estimates current monthly payments, projected refinance payments, total outlay, savings, break-even timing, and payoff differences using the values you provide.
2) Does a lower monthly payment always mean the refinance is better?
No. A lower payment can come from a longer term, which may increase total repayment. Always review both monthly savings and total projected savings before deciding.
3) Why does break-even matter?
Break-even estimates how long monthly savings need to recover the closing costs. If it takes too long, the refinance may offer weaker practical value.
4) Should I finance the closing costs?
Financing fees can reduce upfront cash needs, but it increases the new balance. That usually raises interest paid across the refinance term.
5) Can this calculator handle zero-interest debts?
Yes. If a debt has a 0% APR, the calculator uses a straight principal divided by months formula for that item.
6) What is weighted APR?
Weighted APR reflects the average rate across all debts based on balance size. Larger balances influence the final rate more than smaller balances.
7) Why include monthly income?
Monthly income helps estimate the payment-to-income ratio. That can show whether the refinance improves cash-flow pressure, even when total long-term cost changes only slightly.
8) Are taxes, penalties, or insurance included?
No. This tool focuses on debt balances, rates, terms, and refinance costs. Add any extra charges manually into the fee field if you want them reflected.