Refinance Calculator
Know exactly when a refi pays for itself.
Refinance Calculator
Compare your current payment to a new rate and find the break-even point.
Break-Even Point
to recover $7000 in fees
Cumulative Savings vs Closing Costs
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What This Calculator Does
The Refinance Calculator compares your current mortgage payment against a new rate and shows the break-even point, the number of months it takes for monthly savings to cover the closing costs. It also totals the interest saved over the rest of the loan.
How It Works
Monthly savings come from the difference between your current payment and the new-rate payment on the same balance. Break-even divides closing costs by that monthly savings figure, and lifetime interest savings compare holding the old loan to term versus the new one.
Example
Refinancing a R250,000 balance from 6.5% to 5.5% over 25 years saves about R153 a month. With R7,000 in closing costs, the refi breaks even in roughly 3.8 years.
Reading the Results
Break-Even Point
The number of months until cumulative savings equal your closing costs. Staying in the home past this point means the refi is saving you money.
Lifetime Interest Saved
Total interest on the current loan held to term minus total interest on the refinanced loan. This is the big-picture benefit beyond the monthly payment drop.
Frequently Asked Questions
When does refinancing make sense?
When you plan to stay past the break-even point and can lock in a meaningfully lower rate without resetting your term too far.
What counts as closing costs?
Origination fees, title insurance, appraisal, credit report, and recording fees. Rolled into the loan they still count against your break-even.
Can I refinance to a shorter term?
Yes, but the payment may rise even at a lower rate. The tool uses the same term for a fair like-for-like comparison.