Loan Details
Example Data Table
| Scenario | Current Balance | Current APR | Months Left | New APR | New Term | Closing Costs | Payment Change |
|---|---|---|---|---|---|---|---|
| Sample | $45,000 | 9.25% | 84 | 7.75% | 84 | $1,200 | Typically decreases |
| Shorter Term | $45,000 | 9.25% | 84 | 7.75% | 60 | $1,200 | May increase |
| Cash-Out | $45,000 | 9.25% | 84 | 7.75% | 84 | $1,200 | Depends on cash-out |
Formula Used
- Monthly rate: r = APR / 12
- Payment: PMT = P × r ÷ (1 − (1 + r)−n)
- Total interest: (PMT × n) − Principal
- Break-even months: Closing Costs ÷ Monthly Savings (when savings > 0)
How to Use This Calculator
- Enter your current balance, APR, and months remaining.
- Enter the new APR and the new term you’re considering.
- Add expected closing costs and optional cash-out amount.
- Choose whether fees are paid upfront or rolled into the loan.
- Press Calculate to see payments, totals, and break-even.
- Use Download CSV or Download PDF to share results.
Refinance outcomes depend on your target payment
Refinancing a home equity loan can reduce a payment, accelerate payoff, or provide cash-out for planned projects. This calculator compares your remaining balance and APR against a new offer, then estimates the payment, total paid, and total interest under each fixed schedule.
Inputs that change results the most
The remaining balance sets the starting principal, while APR determines the monthly rate used in amortization. Term length controls how quickly principal declines, so a shorter term often raises the payment but reduces interest. Closing costs affect your true cost, and cash-out increases principal even when the rate falls.
How to read the summary metrics
Review the current and new monthly payments first, then compare total interest across the full term. Net interest savings subtracts upfront fees from the interest difference so you can evaluate the all-in outcome. If fees are rolled into the new loan, the principal increases and interest is charged on that amount.
Break-even is a timing question
When you pay fees upfront and the refinance lowers the payment, break-even is estimated as closing costs divided by monthly savings. The figure is most useful if you expect to keep the new loan long enough to recover fees. If you refinance again earlier, the lower rate may not offset the original charges.
Balance chart and exports support validation
The chart plots remaining balance over time, helping you see whether the refinance pays down principal faster or slower. Use the CSV download to audit totals and the first-year payment snapshots. The PDF export produces a shareable summary for discussions with lenders and household decision makers. This view supports quick comparisons across realistic practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical scenarios. It also highlights how financing fees changes the early balance curve.
FAQs
Does a lower APR always guarantee savings?
No. A lower APR can still cost more if the term is extended or fees are high. Compare total paid and total interest, not only the payment.
How are closing costs treated?
You can pay costs upfront or roll them into the new principal. Upfront costs affect break-even; rolled costs increase principal and interest over the term.
What does net interest savings represent?
It’s the interest difference between the current and new loan, minus upfront closing costs. If costs are rolled in, savings reflects interest differences without an upfront subtraction.
Why might the new payment be higher?
Payments rise when the term is shorter, cash-out increases principal, or fees are financed. A lower APR may not offset a larger balance or faster payoff.
Why is break-even not always shown?
Break-even is shown only when costs are paid upfront and the refinance reduces the payment. If payment savings are not positive, a simple payback period is not meaningful.
How should I use the tax rate field?
It provides a simple after-tax view of interest differences using your marginal rate. Deductibility rules vary, so treat it as a directional estimate rather than tax advice.