Estimate monthly savings, break-even timeline, and total interest impact before refinancing.
Semi-annual compounding for Canada · Monthly compounding for USA · Break-even analysis
Mortgage Refinance
Refinance Details
Current Mortgage
Est. Current Payment
$3,159.38/mo
P&I only
New Refinance
Refinancing May Reduce Cost
Estimated Monthly Savings
$531.34
$3,159.38 → $2,628.03/mo
See what's driving the refinance decision.
Payment comparison
Saves
$531.34/mo
Estimated P&I payments only. Actual payments may include taxes and insurance.
Timeline
Break-even at Month 6 — cumulative savings recover the $3,000 refinance cost at this point.
FinCalc Smart AI Refinance Analysis
Refinance Result
Refinancing Saves
Refinancing May Reduce Cost
Monthly payment drops by $531.34 — refinance costs of $3,000 are recovered at Month 6. Over 5 years, estimated net savings are $28,881.
Term Extension Warning
+5 yrs
added to your amortization
Refinancing from 20 remaining years to a 25-year amortization extends your mortgage by 5 years. Over the 5-year window, interest savings are estimated at $13,793.
Estimate based on entered inputs. Actual results depend on lender terms and conditions.
Monthly Payment Change
$531.34/mo less — 16.8% lower
$3,159.38/mo current → $2,628.03/mo new. Estimated P&I only.
Break-even Check
Break-even at Month 6
Costs are recovered within the 5-year window. Staying beyond Month 6 builds savings.
Total Interest Impact
$13,793 less interest (5yr)
Over 5 years the lower rate reduces interest by $13,793 vs. continuing the current mortgage.
5-Year Summary
Current Payment
$3,159.38
New Payment
$2,628.03
Monthly Savings
$531.34
Break-even
Mo 6
Estimates only. Results depend on actual lender terms, prepayment penalties, appraisal fees, and legal costs. CMHC/PMI may apply to refinanced amounts above 80% LTV and is not included. Does not constitute financial, mortgage, tax, or legal advice. Consult a licensed mortgage professional before refinancing.
The calculator uses the standard fixed-rate amortization formula to compute estimated monthly payments for both the current and new mortgage:
| Variable | Meaning |
|---|---|
| P | Monthly payment |
| principal | Loan balance (current balance + cash-out) |
| r | Monthly interest rate (see compounding rules below) |
| n | Total payments = amortization years × 12 |
Canadian mortgages must use semi-annual compounding under the Interest Act (RSC 1985, c. I-15). The effective monthly rate is derived from the semi-annual equivalent:
US mortgages compound monthly, so the monthly rate is simply annualRate / 1200. The calculator switches between the two automatically based on the region toggle.
Break-even months = Refinance costs ÷ Monthly savings. If savings ≤ 0, there is no break-even. If refinance costs are zero, break-even is immediate.
Net savings over horizon = (Monthly savings × horizon months) − Refinance costs. Total interest over the horizon is calculated month-by-month for both loans, so the comparison remains accurate even if one loan would be fully paid off before the horizon ends.
This calculator is for illustrative and informational purposes only. Results are estimates and may not reflect actual lender terms, prepayment penalties, appraisal or legal fees, CMHC/PMI premiums, or other charges. Cash-out refinancing may have different lender eligibility requirements. Does not constitute financial, mortgage, tax, or legal advice. Consult a licensed mortgage professional before making any refinancing decisions.