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Refinance Calculator

Compare your current loan with a refinance: monthly savings, break-even point after closing costs and lifetime interest. Free refinance calculator.

Monthly savings
$220.66
Current monthly payment
$1,719.54
New monthly payment
$1,498.88
Break-even point
1 year 11 months
Interest left on current loan
$307,130
Interest on new loan
$289,595
Lifetime savings (after costs)
$12,535

When refinancing pays off

Refinancing replaces your loan with a new one, usually at a lower rate. The question is whether the savings cover the closing costs, and how soon. Refinancing a $250,000 balance from 7% with 27 years left to a new 30-year loan at 6% cuts the payment by $220.66 a month; $5,000 of closing costs are paid back in 23 months. Restarting at 30 years adds payments at the end, so the calculator also compares total interest over both loans.

How to use it

  1. 1

    Enter your current loan

    Balance, rate and years left.

  2. 2

    Add the new loan

    New rate, new term and closing costs.

  3. 3

    Compare

    Monthly savings, break-even time and lifetime cost.

Frequently asked questions

How is the break-even point calculated?

Closing costs ÷ monthly savings. If you'll stay in the home longer than that, the refinance pays off.

How much lower should the rate be?

There's no fixed rule; it depends on costs and how long you'll stay. Run your numbers with the actual quote.

Does a longer term cost more?

Often yes. A lower payment over more years can still mean more total interest. Compare the lifetime figure.

Is my data stored?

No. The calculation runs in your browser.

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