finance calculator
Loan Rate Comparison / Refinancing
Compare two loan options side by side with rates, points, fees, and monthly payments. See monthly savings and a simple break-even on upfront costs.
Results
- Payment A (P&I)
- $2,155
- Payment B (P&I)
- $2,270
- Closing costs A
- $1,500
- Closing costs B
- $1,000
- Monthly savings (B - A)
- $115
- Break-even months on points/fees
- 4.345
How to use this calculator
- Enter loan amount and term.
- Enter rates, points, and fees for Option A and Option B.
- Review payments, closing costs, monthly savings, and break-even time on upfront costs.
Inputs explained
- Points
- Percent of loan amount paid upfront; 1 point = 1% of loan amount.
- Fees
- Other upfront costs rolled into closing.
How it works
Closing costs = points % × loan amount + entered fees for each option.
Payments use the standard amortization formula for the entered term and rate.
Monthly savings = Payment B − Payment A (positive means Option A saves monthly). Break-even months = (cost A − cost B) ÷ monthly savings, shown only if savings are positive.
When to use it
- Comparing refinance offers or buy-down points vs. higher rate options.
- Showing the breakeven timeline on paying points/fees for a lower rate.
- Evaluating two lender quotes side by side.
Tips & cautions
- If monthly savings are negative, the lower closing-cost option may still win depending on your timeline; check the payments and closing costs.
- This model ignores taxes/insurance/MI and assumes fixed-rate fully amortizing loans.
- If you plan to sell soon, a shorter break-even is generally preferable.
- Does not include MI, taxes/insurance escrow, or ARM features.
- Break-even is a simple points/fees vs. payment savings comparison; no NPV/discounting.
Deep dive
Compare two loan or refinance options by rate, points, and fees to see payments, closing costs, monthly savings, and break-even months.
Enter loan details for two options to find the lower payment and when upfront costs pay off.
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