Mortgage Recast Calculator

Model a lump-sum principal reduction — and weigh it against staying invested.

Your loan

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%
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Recast result

New monthly P&I
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Monthly savings
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vs. current payment
Break-even
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to recover recast fee

Scenario comparison

Scenario Monthly payment Payoff date Remaining interest Interest saved

Balance over time

Estimates only. This tool is for planning purposes and is not a payment quote, loan offer, or financial advice. Actual figures depend on your exact balance, accrual method, and servicer terms.

Government-backed loans (VA, FHA, USDA) are generally not eligible for recasting. Confirm eligibility, minimum principal-reduction requirements, fees, and your resulting payment directly with your loan servicer.

Shared loan (from Recast Calculator tab)

Current balance
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Rate
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Months remaining
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Current monthly P&I
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Edit these on the Recast Calculator tab — both tabs share the same values.

401k withdrawal assumptions

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28%
8%
Verdict at selected horizon
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Comparison across horizons

Horizon A: equity gap A: side fund A total B after-tax Difference

A = withdraw & recast (equity built by the lower balance + the payment savings invested monthly). B = leave the funds invested (after-tax value at exit). Difference = B − A; green means staying invested wins.

Break-even & sensitivity

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A total vs. B after-tax over time

Growth rate is an assumption, not a guarantee. Mortgage paydown is effectively a risk-free return at your note rate, while portfolio returns carry market risk and can be negative.

A large withdrawal may stack into a higher marginal tax bracket than the single rate used here, and could affect other income-based thresholds.

Not tax or investment advice. Estimates only — consult a qualified tax and financial professional before withdrawing retirement funds.