Forgotten all your algebra? That’s ok. All you need to know about earning interest and paying off debts is right here.
Mortgage Refinance Breakeven
Auto Loan Calculator
Use this calculator to help you determine your monthly auto loan payment or
your auto purchase price. After you have entered your current information, use
the graph options to see how different loan terms or downpayments can impact
your monthly payment. You can also examine your complete amortization schedule
by clicking on the "View Report" button.
- Monthly payment
- Monthly payment for your auto financing.
- Total purchase price (before tax)
- This is the total cost of your auto purchase. Include the cost of the vehicle, any additional options and any destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after tax price.
- Term in months
- Number of months for this loan.
- Interest rate
- Annual interest rate for this loan.
- Cash down
- Total amount of cash used in this purchase. The larger your cash down payment the smaller the loan you will need to finance this purchase.
- Trade allowance
- The total amount that you are given for any automobile that you trade-in as part of this purchase. In some states a trade-in can also reduce the amount of sales tax you will owe. See the definition for "Sales tax deduction for trade-in" for more information on trade-in vehicles and sales tax.
- Amount owed on trade
- Total loan balance still outstanding on the trade-in.
- Non-taxable fees (optional)
- Any additional fee that is not subject to sales tax. This usually includes document fees or any other fees that may be due at delivery and are not taxable.
- Taxable fees (optional)
- Any additional fee that is subject to sales tax. This usually includes title transfer fees or any other fees that may be due at delivery and are taxable.
- Sales tax rate
- Sales tax percentage rate charged on this purchase.
- No sales tax deduction for trade-in
- If you live in a state where your sales tax is calculated on your full purchase price, check this box. If this box is unchecked, sales tax is calculated on the purchase price less trade in. Currently California, the District of Columbia, Hawaii, Maryland, and Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.
Buy Vs. Lease Calculator
Should you lease or buy your car? Use this calculator to find out. We calculate your monthly
payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.
- Term in months
- Term in months for your auto lease or your auto loan.
- Down payment
- Amount paid as a down payment, which for leases is often called a capital reduction.
- Other fees
- Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, etc.
- Purchase price
- Total purchase price. Price should be after any manufacturer's rebate.
- Interest rate
- Annual interest rate for your loan or your lease.
- Sales tax rate
- Percentage sales tax to be charged on this purchase. Sales tax is included in each lease payment. Sales tax for buying is charged on the total sale amount.
- Rate of depreciation
- The rate of depreciation gauges how fast your new automobile will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.
- Residual percent
- For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.
- Market value of vehicle
- Value of your auto after the lease term is over.
- Investment rate of return
- Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your auto purchase or lease.
The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.7% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Lost interest on buy option
- This includes any interest you would have earned at your investment rate of return on the buy option's down payment and other fees. If the monthly payment for leasing is less than the monthly payment for buying, this also includes any lost interest due to the higher monthly payments. If leasing is more expensive than buying, your interest costs for buying are reduced by the amount of interest you would earn on the difference.
- Lost interest on lease option
- This includes any interest you would have earned at your investment rate of return on the lease option's down payment, security deposit and other fees. Please see the definition for "Lost interest on buy option" for an explanation on how we account for any interest you might earn by having a lower monthly lease payment.
How long will it take to breakeven on a mortgage refinance? That depends on a multitude of factors.
These factors include your current interest rate, the new potential rate, closing costs and how
long you plan to stay in your home. Use this calculator to sort through the confusion, and
determine if refinancing your mortgage is a sound financial decision. Click the "View Report"
button for a detailed look at your records.
- Original mortgage amount
- Original amount of your mortgage.
- Appraised value
- The appraised value of your home when you purchased it.
- Current term in years
- Total length of your current mortgage in years.
- Years remaining
- Number of years remaining on your current mortgage.
- Income tax rate
- Your current income tax rate.
- Calculate balance
- To let the calculator determine your remaining balance, based on your original loan information and years remaining, check this box. To enter your own amount, leave this box unchecked.
- Current appraised value
- The current appraised value of your home.
- Loan balance
- Balance of your mortgage that will be refinanced.
- New interest rate
- The annual interest rate for the new loan.
- New term in years
- Number of years for your new loan.
- Loan origination rate
- This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. Typically this fee is 1% of the loan balance.
- Other closing costs
- Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.
- Points paid
- This is the number of points paid to the lender to reduce the interest rate on the mortgage. Each point costs 1% of the new loan amount.
- Current payment
- Your current payment is the sum of principal, interest and PMI (Principal Mortgage Insurance). Because refinancing does not affect your insurance or taxes, they are not included here.
- New payment
- Your new payment is the sum of principal, interest and PMI.
- Monthly PMI payment
- Monthly cost of Principal Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When the equity in your home exceeds the percentage required for PMI, your PMI payment drops to zero.
- Monthly PI payment
- Monthly principal and interest payment.
- Breakeven monthly payment savings
- The number of months it will take for your monthly payment reduction to be greater than closing costs.
- Breakeven PMI & interest savings
- The number of months it will take for your interest and PMI savings to exceed your closing costs.
- Breakeven total savings after-tax
- The number of months it will take for your after-tax interest and PMI savings to exceed your closing costs.
- Breakeven total savings vs. prepayment
- This is the most conservative breakeven measure. It is the number of months it will take for your after-tax interest and PMI savings to exceed both your closing costs and any interest savings from prepaying your mortgage. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs.
Consistent investments over a number of years can be an effective strategy to
accumulate wealth. Even small additions to your savings add up over time. This
calculator demonstrates how to put this savings strategy to work for you!
- Starting amount
- The starting balance or current amount you have invested or saved.
- Additional contributions
- The amount that you plan on adding to your savings or investment each period. The investment period options include monthly, quarterly and annually. This calculator assumes that you make your contributions at the beginning of each period.
- The total number of years you are planning to save or invest.
- Rate of return
- The annual rate of return for this investment or savings account. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.7% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Earnings on an investment's earnings, plus previous interest. This calculator allows you to choose the frequency that your investment's interest or income is added to your account. The more frequently this occurs, the sooner your accumulated earnings will generate additional earnings. For stock and mutual fund investments, you should choose 'Annual'. For savings accounts and CDs, all of the options are valid, although you will need to check with your financial institution to find out how often interest is being compounded on your particular investment.
Debt Consolidation Calculator
Should you consolidate your debt? This calculator is designed to help determine
if debt consolidation is right for you. Fill in your loan amounts, credit card
balances and other outstanding debt. You can then see what your monthly payment
would be with a consolidated loan. Try adjusting your terms, loan types or rate
until you find a consolidation plan that fits your needs - and most importantly
- Loan amount owed
- Loan amount owed is the total remaining balance on a loan. If you are uncertain of your exact balance, enter an estimate that is as close as possible.
- Loan payment
- The payment amount is your current monthly payment.
- Loan months Left
- The number of months you have left to make payments on a loan.
- Credit card balance
- The outstanding balance on your credit card. You do not need to include finance charges, they will be calculated based on your interest rate.
- Credit card rate
- Annual interest rate you pay on outstanding credit card balances. This calculator assumes simple interest is charged every month at 1/12th of your annual rate.
- Credit card payment
- Credit card payments are based on your outstanding balance and annual interest rate. For this loan comparison, the monthly payment is the amount required to pay off your credit card in the same number of months as your consolidation loan. Your actual credit card payment may be lower, but will often require many more payments.
- Interest rate
- Annual interest rate for your new consolidation loan.
- Term in months
- Number of months for your new consolidation loan.
- Up front costs
- Any fees you are required to pay up front to receive this loan. This could include appraisal fees, loan origination fees, etc.
- Number of points paid for this loan. Points are usually only paid for home equity loans.
- Rate earned on savings
- This is the rate you would have received if you had put your closing costs into savings. Enter your short term savings rate. For most people this is currently 2% to 5% annually. Savings accounts at a bank or credit union pay as little as 2% or less.
- Income tax rate
- This is your combined federal and state income tax rates. It is used to determine income tax savings when you use a home equity loan to consolidate your debt.
- Loan type
- The two most common loans types, home equity and personal, differ in fees, rates and tax deductibility of interest. Home equity loans often have higher fees, but usually have lower rates and a tax deduction for interest paid. Personal loans do not have a tax deduction for interest paid, and have a higher interest rate but often have lower fees. These are important considerations when choosing a loan.
- Include closing costs in loan
- If you include your closing costs in your loan, your loan balance, monthly payment and total interest paid will increase. You will, however, be required to pay less money up front. Including your closing costs in your loan may be a good option if you do not have funds available, or you can achieve a relatively high rate of return on your savings.
Loan Comparison Calculator
Determining which loan provides you with the best value involves more than simply comparing
monthly payments. Use this calculator to sort through the monthly payments, fees and other
costs associated with getting a new loan. By comparing these important variables side by
side, this calculator can help you pick the loan that works best for you. Click on the
"View Report" button to see the results in detail.
- Loan amount
- The total dollar amount for this loan.
- Interest rate
- The interest rate on this loan.
- Loan term
- The number of years over which you will repay this loan. The most common terms are 15 years and 30 years. If this loan has a "balloon" payment, the loan term will be shorter than the number of years to amortize the loan. For example, a loan with a 5-year term amortized over 30 years will have the same monthly payment as a 30-year loan with the same interest rate. The difference is the 30-year loan will have equal payments for 30 years. The 5-year loan will have equal payments for 5 years and then a very large, or balloon, payment for the remaining balance.
- The number of years used in calculating the monthly payment. Loans that are amortized over a longer period than their loan term have a balloon payment. See "Loan term" for more information.
- Origination fee
- The dollar amount charged as a loan origination fee, which is included in the Annual Percentage Rate (APR) calculation. For many loans a 1% origination fee is common. For example: a 1% fee on a $120,000 loan would cost $1,200.
- Commitment fee
- An upfront fee included in the APR calculation.
- Other fees
- Fees included in the APR calculation. These fees can vary by lender but, at a minimum, usually includes prepaid interest.
- Other costs
- Any other costs that should be included in the APR calculation.
- Monthly loan payment
- Monthly principal and interest payment (PI).
- Annual percentage rate (APR)
- A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example: a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate and very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
- Balloon payment
- This is the total final payment for all loans that are amortized over a period of time longer than the loan term. The balloon payment is total interest and principal balance due at the end of the loan term. (If the loan term is the same as the amortization, this amount is always zero.)