Refinance Calculator
Compare your current loan against a refinance offer and find the break-even point.
Assumptions used in this calculation
- Costs excluded: Break-even is based only on the closing costs you enter, it doesn't add any prepayment penalty your current loan may charge for paying it off early.
- Tax effects ignored: The comparison uses pre-tax monthly payments, it doesn't account for any tax deduction you may be claiming on your current loan's interest.
About this calculator
A lower refinance rate looks like an obvious win, but the closing costs required to get there, appraisal, application, legal and processing fees, mean the new loan doesn't actually start saving you money until those upfront costs are paid back through the lower monthly payment, and that break-even point is easy to overestimate or ignore entirely. This calculator computes your current loan's monthly payment against the new refinanced loan's payment (at its new rate and tenure), then divides the closing costs by the monthly savings to find exactly how many months it takes for the refinance to pay for itself: Break-even months = Closing costs ÷ (Current payment − New payment). If you expect to move, sell, or pay off the loan before that break-even point, refinancing likely isn't worth the upfront cost, this calculator gives you that number directly instead of a vague sense that a lower rate is 'probably worth it.'
Worked example
9%→7.5%, ₹50,000 closing costs
Result: Break even in ~29 months
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