Refinance Calculator

Currency

Outstanding balance

Current rate, %

Months remaining

New rate, %

New term, months

Arrangement costs

Result

Current payment

$48,312.63

New payment

$39,952.24

Payment falls by

$8,360.39

Total cost now

$8,696,273.61

Total cost after

$7,221,403.49

Saving

$1,474,870.12

Break-even, months

This result is informational only and is not professional advice.

Compares total cost, not just the monthly payment

The current loan against a new one, including arrangement costs, and how many months it takes for the switch to pay for itself.

Refinancing adverts always lead with a lower monthly payment, which is the most misleading figure available. A payment falls simply by stretching the term — and total interest rises rather than falls.

So both numbers are computed here: the new payment and the total paid over the whole term with arrangement costs added. Plus the break-even point — how many months of lower payments it takes to recover valuation, insurance and fees.

What this calculator shows

Current and new monthly payments and the gap between them
Total cost under both loans, arrangement costs included
The number of months before refinancing pays for itself

What to keep in mind

Both loans are treated as annuity loans with a level monthly payment.
Costs should include valuation, insurance, registration and any bank fee — typically 20,000 to 60,000 roubles on a mortgage.

FAQs

How big a rate gap justifies refinancing?

One and a half to two percentage points, keeping the same term. Below that, arrangement costs eat the benefit, especially late in a loan.

Why not just compare the monthly payment?

Because a longer term lowers it regardless of rate. Twenty years instead of fifteen means a smaller payment and considerably more interest.

What costs are involved?

Property valuation, a new insurance policy, registration duty and sometimes a bank fee — usually 20,000 to 60,000 roubles on a mortgage.

Does refinancing forfeit the mortgage interest relief?

Not if the new agreement states explicitly that it refinances the earlier mortgage. Without that wording the relief genuinely is lost.

Worked example

A mortgage moving from 18 to 14 percent

Input: 3m outstanding, 18% over 180 months, new 14% over 180, costs 30,000 ₽

Output: Payment falls from 48,300 to 39,900 ₽; saving about 1.48m ₽

Note: Break-even under four months, so it is clearly worth doing. Stretch the new term to 240 months and the payment drops further while the saving nearly vanishes.

Useful links

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Refinance Calculator

Result

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