Estimate whether scheduled payment savings recover entered refinancing costs within the overlapping payment period.
The calculator keeps the balance, rate convention, payment timing, fees, and term visible so you can reproduce the result and compare it with an actual offer or statement.
The cash-flow relationship
Place every amount at the correct time
Simple break-even month = ceiling(upfront costs ÷ positive monthly payment savings), capped at the shorter remaining payment term.
Visual explanation
What changes the borrowing result
Option Apayments + fees
versus
Option Bpayments + fees
Compare the same decision horizonSimple break-even month = ceiling(upfront costs ÷ positive monthly payment savings), capped at the shorter remaining payment term.
Read the result in context
Use the estimate with its contract assumptions
If entered costs are 600 and scheduled payment savings are 50 monthly, simple break-even is 12 months when both loans still require payments then.
This is a simple undiscounted payment-savings horizon. It excludes opportunity cost, taxes, penalties, rate changes, and cash flows after one loan's entered payment term ends.
Quick guide
How to use this calculator
Enter the contract or offer figures using one consistent currency and distance unit.
Keep rates, terms, fees, rebates, and timing aligned with the visible labels.
Compare the outputs with the stated exclusions before making a decision.
Calculation method
Calculation method
Simple break-even month = ceiling(upfront costs ÷ positive monthly payment savings), capped at the shorter remaining payment term.
Entered monetary components use exact fixed-decimal arithmetic. Amortizing comparisons reuse the reviewed stable loan schedule and round only for presentation.
Worked example
Worked example
If entered costs are 600 and scheduled payment savings are 50 monthly, simple break-even is 12 months when both loans still require payments then.
Simple break-even month = ceiling(upfront costs ÷ positive monthly payment savings), capped at the shorter remaining payment term.
Supported inputs
Precision and limits
Visible input limits
Amounts are capped at 1e12, rates at 1000%, terms at 1,200 months, and fixed decimals at 12 places.
Descriptive comparison
These tools describe entered cash flows and contract terms. They do not recommend a lender, lease, refinance, incentive, or purchase.
International scope
No currency, country, tax, lender rule, distance system, credit eligibility standard, or consumer-protection outcome is assumed.
Calculator-specific assumptions
This is a simple undiscounted payment-savings horizon. It excludes opportunity cost, taxes, penalties, rate changes, and cash flows after one loan's entered payment term ends.
