Home Equity / Refinance Calculator
Available equity, new payment and refinance break-even.
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Monthly savings
$389.01
Break even on closing costs in 16 months
Extending the term lowers the payment but can raise lifetime interest even at a lower rate. Compare the total-cost rows, not just the monthly figure.
$389/mo saved · $200,000 equity
How this is calculated
Home equity is simply what the property is worth less what you still owe. Lenders express your borrowing headroom as a loan-to-value ratio and most cash-out programs stop at 80%.
equity = home value − loan balance
max cash out = home value × 0.80 − current balance
Both the current and proposed payments use the standard amortizing formula, the current one over the years you have left and the new one over the full new term:
payment = P × r ÷ (1 − (1 + r)^−n)
The break-even point tells you how long you must stay to recover the closing costs:
break-even months = closing costs ÷ monthly savings
A refinance that saves money each month can still cost more overall if it resets a partly paid loan back to a fresh 30-year term. The total-cost rows compare the remaining cost of keeping your current loan against the full cost of the new one including closing costs.