🔄 Refinance Calculator
Refinancing only pays off if the monthly savings outweigh the closing costs before you sell or refinance again. This calculator prices your current loan against the new offer and divides the closing costs by the monthly saving to find the break-even point.
The comparison assumes you refinance the same balance. Rolling extra cash out or changing the loan amount will move the numbers.
How to use this calculator
Enter your current loan balance, rate and years left, then the new loan offer and closing costs, to find your monthly savings and the break-even point.
- Type your Current loan balance, rate and Years remaining.
- Enter the New loan rate, term and the Closing costs.
- Press Calculate to compare the two payments.
- Check the break-even months against how long you plan to keep the loan.
Frequently asked questions
What does the refinance calculator compare?
It prices your current loan and the new offer with the same amortization maths, then shows both payments, the monthly saving, the yearly saving and how many months of savings it takes to recover the closing costs.
What is the break-even point?
Closing costs divided by monthly savings. If you sell or refinance again before that many months pass, the refinance costs more than it saves.
Can you show an example?
Refinancing $250,000 from 7.5% with 25 years left to 6% over 30 years drops the payment from about $1,847.48 to $1,498.88, saving $348.60 a month. With $5,000 of closing costs the break-even is about 14.3 months.
Does a lower rate always mean refinancing wins?
No. If the saving is small and the closing costs are large, or you move soon, you may never break even. A longer new term also restarts the clock on interest.