How it works
New payment uses the fixed-rate annuity formula. Simple fee break-even = upfront fees / (current payment − new payment).
Input definitions
- New loan balance
- Enter the value in the labeled unit.
- Current quoted monthly payment
- Enter the value in the labeled unit.
- New nominal annual rate (%)
- Enter the value in the labeled unit.
- New loan term (months)
- Enter the value in the labeled unit.
- Fees paid upfront
- Enter the value in the labeled unit.
A worked example
- New loan balance
- 1200
- Current quoted monthly payment
- 120
- New nominal annual rate (%)
- 0
- New loan term (months)
- 12
- Fees paid upfront
- 120
Assumptions & limits
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data. Fees are paid in cash, not financed. The current payment is your quoted principal-and-interest amount; omit insurance and taxes.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Does a lower refinance payment mean the refinance is cheaper?
No. A longer term can lower monthly payments while increasing lifetime cost. This break-even measures upfront fee recovery only; compare remaining and proposed loan costs separately.
How does Refinance fee break-even work?
New payment uses the fixed-rate annuity formula. Simple fee break-even = upfront fees / (current payment − new payment).
What are the limits of Refinance fee break-even?
Entered single-currency amounts and fixed rates; monthly interest and two-decimal half-up rounding. No tax, lending approval, changing rates or live market data. Fees are paid in cash, not financed. The current payment is your quoted principal-and-interest amount; omit insurance and taxes.