Compare your current loan with a refinance loan to estimate monthly payment savings, total interest savings, and how long it may take to recover refinancing costs.
Enter your loan details and click Calculate to compare your current loan with a refinance scenario.
This refinance calculator compares your current loan with a new refinance loan using your remaining balance, current rate, remaining term, new interest rate, new term, and estimated closing costs.
It shows your current monthly payment, your estimated new payment, monthly savings, total interest comparison, and the estimated break-even point where monthly savings offset refinance costs.
Monthly loan payments are calculated using the standard amortizing loan formula:
M = P × [r(1 + r)n] / [(1 + r)n - 1]
Where:
Break-even time is estimated with:
Break-Even Months = Closing Costs / Monthly Savings
A lower interest rate can help, but refinance costs and a longer term can reduce or delay the benefit.
If you may move or sell before reaching break-even, refinancing may not save as much as it first appears.
Resetting to a longer loan term can lower the monthly payment but may increase the total interest paid over time.
It is important to compare both the monthly payment and the total long-term cost, including closing costs.
Refinancing may make sense when you can lower your interest rate, reduce your monthly payment, shorten your term, or achieve another goal that offsets the refinance costs.
The break-even point is how long it takes for your monthly savings to recover the upfront closing costs of the refinance.
Yes. Even with a lower rate, extending the loan term can sometimes increase the total interest paid over the full life of the new loan.
No. This refinance calculator estimates principal and interest only. Taxes, insurance, HOA dues, and escrow costs are not included.