BizyFi

Refinance Breakeven Calculator

If refinancing means paying a prepayment penalty on your current loan, this estimates how many months it takes the new loan's lower payment to make up for it. Every calculation runs locally in your browser.

Your current loan

What you're paying today, from your loan statement.
A flat dollar amount, or a percentage of your balance if that's how your loan documents state it -- check your note or ask your current lender if you're not sure.

The new loan

Your current balance, plus the prepayment penalty and any fees if you're rolling them in -- or just your current balance if you're paying those out of pocket.

Your estimate

New monthly payment
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Monthly savings vs. your current payment
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Breakeven on the prepayment penalty
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Get your full pre-qualification estimate
Takes about 3 minutes. A BizyFi advisor reviews every request.

How this is calculated

New monthly payment uses a standard amortizing-loan formula on the new loan amount, rate, and term you enter -- the same formula our other loan-payment calculators use.

Breakeven = the prepayment penalty divided by your monthly savings. If refinancing lowers your payment by $200/mo and the penalty to get there is $2,000, you break even in 10 months -- after that, the lower payment is money back in your pocket every month you keep the new loan.

This only measures the breakeven on the prepayment penalty itself, not every possible reason to refinance -- clearing a UCC-1 filing, consolidating multiple debts, or extending your term for cash-flow reasons can all be worth doing even without a fast payment-based breakeven. See our UCC-1 guide for the fuller picture on when a UCC-1 nearing renewal is a natural moment to revisit your financing.

The calculation itself runs entirely in your browser -- the specific figures you enter are never transmitted or stored, except that the "Get your full pre-qualification estimate" button below carries the amount you entered into the application form's URL so you don't have to type it twice. Separately, we log anonymous usage analytics (that this page was viewed, or that a button was clicked) to see which calculators are useful -- never the numbers you type.

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