Mortgage Refinance Analyzer
Is refinancing worth it — really? This tool goes beyond simple break-even math. It models your full amortization, discounts future savings to present value, and shows you what refinancing is worth at every exit horizon. Enter your numbers and see for yourself.
Mortgage Refinance Analyzer
Evaluate refinancing with NPV-adjusted savings analysis
This is not a loan rate. It is the opportunity-cost rate used to discount future cash flows for the NPV calculation (e.g., expected investment return).
Cumulative NPV Over Time
Early Exit Analysis
| Year | Old Balance | New Balance | Balance Diff | Cumul. Savings | NPV of CFs | NPV incl. Bal. Diff |
|---|
1. Overview
This tool evaluates the financial merits of refinancing a mortgage by comparing the existing loan's remaining payment schedule against a proposed new loan. It extends the standard break-even analysis with Net Present Value (NPV) calculations, which account for the time value of money, and an early-exit analysis that captures the impact of differing principal balances if the home is sold before either loan matures.
2. Amortization Schedules
Both loans are modeled using standard fixed-rate mortgage amortization. Each month, interest accrues on the outstanding principal balance at the monthly rate (annual rate ÷ 12). The fixed monthly payment is split between interest and principal reduction.
For the current loan, the starting balance is auto-computed as the future value of the original loan after the number of months already elapsed. Both the remaining balance and the months remaining can be manually overridden to match a current statement or model a specific scenario. For the new loan, the starting balance equals the current remaining balance plus any cash-out amount and, if applicable, rolled-in refinance fees.
3. Net Cash Flow
The net cash flow each month equals the old payment minus the new payment. In the first month, upfront refinancing costs are also subtracted. When the old loan's remaining term expires, its payment drops to zero and the net cash flow becomes negative for any remaining months on the new loan.
4. Net Present Value
Each month's net cash flow is discounted to present value:
Discounted CF = Net CF / (1 + r)t
where r is the monthly discount rate derived from the annual rate:
r = (1 + rannual)1/12 − 1
5. Early Exit Analysis
If the home is sold before either loan matures, the balance difference matters. The analysis computes at each horizon:
NPV at Exit = Cumul. NPV of CFs + (Old Balance − New Balance) / (1 + r)t
A positive balance difference means you owe less on the old loan (reducing the refinance benefit). A negative difference means the new loan has paid down faster (adding to the benefit).
6. Key Assumptions
Fixed rates only. No prepayment or extra payments. Tax effects and PMI changes are excluded. The upfront cost is deducted from the first month's cash flow rather than period zero (negligible NPV impact). Months elapsed is computed from the origination date relative to the analysis date, which defaults to today but can be set manually for what-if scenarios.
THIS TOOL IS PROVIDED FOR INFORMATIONAL AND ANALYTICAL PURPOSES ONLY. IT DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX, OR LEGAL ADVICE.
Treussard Capital Management LLC (“TCM”) provides this tool on an “as is” and “as available” basis, without warranty of any kind, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, accuracy, or completeness.
While this tool has been subject to quality control review, it may contain errors, inaccuracies, or omissions. Users should independently verify all calculations and consult with a qualified mortgage professional, financial advisor, tax advisor, and/or attorney before making any refinancing decision.
TCM shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from the use of or reliance on this tool or any information contained herein.
By using this tool, you acknowledge and agree that: (i) you are solely responsible for any decisions made based on its output; (ii) the results are estimates based on the inputs you provide and the assumptions described in the Methodology section; (iii) actual refinancing terms, costs, and outcomes may differ materially from the estimates presented; (iv) past performance and projected savings are not guarantees of future results.
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