Refinance Calculator
Compare your current loan with a refinance offer by monthly savings, total interest after closing costs, and break-even period.
What a refinance calculator should compare
English refinance intent is usually decision-focused: will the lower payment or lower APR actually save money after closing costs? This calculator compares the current remaining loan with a new fixed-rate loan offer.
- Current balance, current APR, and remaining term.
- New APR, new term, and closing costs or fees.
- Monthly savings between current and new payments.
- Break-even period for closing costs.
- Total future interest difference after costs.
Refinance break-even formula
M is monthly payment, P is balance, i is monthly rate, and n is months.
Break-even months are only meaningful when the new monthly payment is lower.
A lower monthly payment can still have negative lifetime savings if the new term is much longer.
When refinancing can cost more
| Signal | Why it matters |
|---|---|
| New term is longer | Payment can fall while total interest rises. |
| Closing costs are high | Monthly savings may take too long to recover the cost. |
| Rate drop is small | Savings may not cover fees or the effort of refinancing. |
| You may sell soon | You may leave before the break-even month. |
Frequently Asked Questions
Sources and References
- Mortgage Refinance CalculatorNerdWallet
- Mortgage Refinance CalculatorBankrate
- What is a Loan Estimate?CFPB
- Explore interest ratesCFPB
Calculations are based on the listed reference sources. Links open in a new tab.
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