Refinance Calculator
Enter your current loan and a new rate to compare payments, lifetime interest, and how many months until refinance savings cover the closing costs.
Current payment
$2,325.90
New payment
$2,149.29
Monthly savings
$176.60
Break-even point
23 months
Lifetime interest change
−$38,384.87
| Scenario | Monthly | Lifetime interest |
|---|---|---|
| Current loan | $2,325.90 | $258,215.23 |
| Refinanced loan | $2,149.29 | $219,830.36 |
Break-even = closing costs ÷ monthly savings. If the new rate is higher, there is no break-even.
How to use Refinance Calculator
This refinance calculator helps you decide whether replacing your current mortgage with a new loan is worth it. Enter your existing balance, rate and remaining term alongside the new rate, term and closing costs to compare monthly payments, lifetime interest and — most importantly — the break-even point, the number of months it takes for your monthly savings to recover the upfront costs of refinancing.
- Enter your current loan balance, interest rate and remaining months.
- Enter the new interest rate and new loan term you are considering.
- Add the estimated closing costs for the refinance.
- Compare the current and new monthly payments and the monthly savings.
- Check the break-even point to see how long until the move pays off.
Your data never leaves your device — 100% private processing.
How the break-even point works
Refinancing usually carries closing costs — appraisal, origination and title fees — that you pay upfront to secure a lower rate. The break-even point is those closing costs divided by your monthly payment savings, rounded up to whole months. If you plan to keep the home and loan beyond that point, refinancing saves money; if you might move or refinance again sooner, the upfront costs may never be recovered. A higher new rate produces no monthly savings and therefore no break-even.
| Closing costs | Monthly savings | Break-even |
|---|---|---|
| $4,000 | $200 | 20 months |
| $4,000 | $150 | 27 months |
| $6,000 | $250 | 24 months |
Beyond the monthly payment
A lower monthly payment can be appealing, but extending the term can increase the total interest you pay even at a lower rate, because you are borrowing for longer. Compare the lifetime interest of both loans, not just the monthly figure. Refinancing into a shorter term often raises the payment but slashes total interest, while cash-out refinancing increases the balance. Always weigh the break-even point against how long you realistically expect to keep the loan.
Worked examples
Rate drop
Inputs: $300k · 7%→6% · 240 mo · $4k costs
Result: Lower payment · break-even in ~20 months
Higher new rate
Inputs: new rate above current
Result: No savings · no break-even
Glossary
- Refinance
- Replacing an existing loan with a new one, usually to get a better rate or term.
- Break-even point
- The number of months of savings needed to recover refinancing closing costs.
- Closing costs
- Upfront fees paid to set up the new mortgage.
- Lifetime interest
- The total interest paid over the entire life of a loan.
- Cash-out refinance
- Refinancing for more than you owe to take the difference as cash.
Related reading
Frequently Asked Questions
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Why use Refinance Calculator?
- Transparent formulas so you understand every calculation
- Supports multiple currencies and regional tax rules
- Saves you from spreadsheet errors with validated inputs
- Shareable results for discussions with advisors or partners
Common use cases
- Calculate how long to pay off a credit card balance
- Model different mortgage scenarios before house hunting
- Forecast investment growth with compound interest
- Break even analysis for a new product or service
- Compare net salary after tax across different countries
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