Refinance Calculator
Thinking about refinancing? Enter your current loan's balance, rate, and remaining term, then the new loan's rate, term, and closing costs to see your new monthly payment, how much you'd save each month, and exactly how many months it takes to break even. The calculator also shows your true lifetime savings — because a lower monthly payment isn't always a win once you account for a longer term.
Quick examples:
The payoff balance you still owe today (not the original amount)
Lender fees, appraisal, title, points, etc. Enter $0 for a no-cost refi.
Costs are paid out of pocket at closing — the new payment is computed on your current balance.
Refinance Summary
Monthly Savings
Break-Even Point
Net Lifetime Savings
New Monthly Payment
Current Monthly Payment
Interest Left (Current)
Total Interest (New)
A lower payment isn't always a win.
Your monthly payment drops, but because you're extending the loan you'd pay $4,604.73 more in total interest. Lower payment does not guarantee savings — weigh the net lifetime number above.
Current vs. New
| Current loan | New loan | Difference | |
|---|---|---|---|
| Balance | $250,000.00 | $250,000.00 | — |
| Interest rate | 6.50% | 5.50% | −1.00% |
| Term | 25 yr (300 mo) | 30 yr (360 mo) | +5 yr |
| Monthly payment | $1,688.02 | $1,419.47 | −$268.55 |
| Total interest | $256,405.37 | $261,010.10 | +$4,604.73 |
| Total of payments | $506,405.37 | $511,010.10 | +$4,604.73 |
Cumulative Savings Over Time
The line starts below zero (you paid closing costs) and rises with each month of savings. It crosses $0 at your break-even point — from then on, refinancing is putting money back in your pocket.
Yearly Amortization
Showing yearly rows because this loan runs more than 60 months.
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $17,033.64 | $3,367.73 | $13,665.94 | $246,632.28 |
| 2 | $17,033.64 | $3,557.70 | $13,475.97 | $243,074.59 |
| 3 | $17,033.64 | $3,758.37 | $13,275.29 | $239,316.22 |
| 4 | $17,033.64 | $3,970.38 | $13,063.29 | $235,345.84 |
| 5 | $17,033.64 | $4,194.34 | $12,839.35 | $231,151.51 |
| 6 | $17,033.64 | $4,430.91 | $12,602.74 | $226,720.58 |
| 7 | $17,033.64 | $4,680.88 | $12,352.81 | $222,039.72 |
| 8 | $17,033.64 | $4,944.90 | $12,088.76 | $217,094.81 |
| 9 | $17,033.64 | $5,223.82 | $11,809.82 | $211,870.98 |
| 10 | $17,033.64 | $5,518.50 | $11,515.17 | $206,352.48 |
| 11 | $17,033.64 | $5,829.78 | $11,203.89 | $200,522.69 |
| 12 | $17,033.64 | $6,158.63 | $10,875.04 | $194,364.06 |
| 13 | $17,033.64 | $6,506.02 | $10,527.64 | $187,858.03 |
| 14 | $17,033.64 | $6,873.03 | $10,160.67 | $180,985.01 |
| 15 | $17,033.64 | $7,260.71 | $9,772.94 | $173,724.30 |
| 16 | $17,033.64 | $7,670.27 | $9,363.38 | $166,054.03 |
| 17 | $17,033.64 | $8,102.95 | $8,930.73 | $157,951.09 |
| 18 | $17,033.64 | $8,560.01 | $8,473.66 | $149,391.08 |
| 19 | $17,033.64 | $9,042.84 | $7,990.82 | $140,348.23 |
| 20 | $17,033.64 | $9,552.94 | $7,480.71 | $130,795.28 |
| 21 | $17,033.64 | $10,091.81 | $6,941.87 | $120,703.47 |
| 22 | $17,033.64 | $10,661.06 | $6,372.61 | $110,042.41 |
| 23 | $17,033.64 | $11,262.44 | $5,771.23 | $98,779.98 |
| 24 | $17,033.64 | $11,897.71 | $5,135.95 | $86,882.26 |
| 25 | $17,033.64 | $12,568.84 | $4,464.83 | $74,313.41 |
| 26 | $17,033.64 | $13,277.83 | $3,755.84 | $61,035.58 |
| 27 | $17,033.64 | $14,026.81 | $3,006.86 | $47,008.78 |
| 28 | $17,033.64 | $14,818.03 | $2,215.63 | $32,190.76 |
| 29 | $17,033.64 | $15,653.87 | $1,379.78 | $16,536.88 |
| 30 | $17,033.64 | $16,536.88 | $496.80 | $0.00 |
Related Calculators
How This Calculator Works
Refinancing replaces your current loan with a new one. This tool is a two-loan comparison: it applies the standard amortization formula to your current (remaining) loan and to the proposed new loan, then centers everything on two questions — how much you save each month, and how long it takes to recoup the closing costs (your break-even point). It goes a step further and computes your term-aware net lifetime savings, the honest measure of whether refinancing actually saves money. For a single-loan payment or a full payment schedule, see our Mortgage Calculator and Amortization Calculator.
Monthly Payment (Both Loans)
M = P · i(1+i)ⁿ / ((1+i)ⁿ − 1)
This is the standard PMT amortization formula, applied twice: MC = PMT(B, rC, nC) for the current loan and MN = PMT(Pn, rN, nN) for the new loan. P is the principal, i is the monthly rate (APR ÷ 12), and n is the term in months. When a rate is 0%, it switches to M = P / n to avoid dividing by zero.
Monthly Savings & Break-Even
monthlySavings = MC − MN
breakEvenMonths = closingCosts / monthlySavings
Monthly savings is your old payment minus your new payment (it can be negative). The break-even point is the number of months of those savings needed to recoup what you paid to refinance, rounded up to whole months. When monthly savings is zero or negative, there is no payment-based break-even — the calculator says so and points you to the lifetime number instead.
Total Interest & Net Lifetime Savings
totalInterest = (M × n) − P
netLifetimeSavings = remainingInterestCurrent − totalInterestNew − closingCosts
For a fully-amortizing loan the total of all payments is M × n, so the interest is that minus the principal. Net lifetime savings is the term-aware truth: the remaining interest you'd pay on your current loan, minus the total interest on the new loan, minus your closing costs. When you roll closing costs into the new balance (Pn = B + C), that cost is already captured inside the larger principal and its interest, so it is not subtracted twice — when you pay upfront (Pn = B) the closing costs are the out-of-pocket cash in the formula. Either way it reduces to the single expression above.
Why lifetime savings can disagree with the lower payment. Extending a 25-year balance into a fresh 30-year loan lowers the payment but spreads it over more months, often increasing total interest. The calculator fires a term-extension warning whenever monthly savings is positive but net lifetime savings is negative (or the new term outlasts your current remaining term), so a seductive lower payment never hides a higher true cost.
Assumptions baked into the math. Both loans are fixed-rate, fully-amortizing loans with monthly, end-of-month payments, and each amortizes to exactly $0 at its final payment. There are no taxes, mortgage-interest deduction, PMI, escrow, prepayment penalties, or cash-out in the model — results are an estimate, not financial advice. All rates are values you supply; the defaults are illustrative placeholders, never sourced or maintained market rates.
Tips for a Smarter Refinance Decision
Compare Lifetime, Not Just Monthly
A lower payment feels like a win, but it's only half the picture. Always check the net lifetime-savings figure: remaining interest on your current loan minus the total interest on the new one minus closing costs. A payment that drops while total interest rises means you're paying more over time — let the lifetime number, not the monthly delta, settle the decision.
Mind the Term Reset
Refinancing into a fresh 30-year loan when you only have 25 years left restarts the clock and stretches your balance over more payments. Even at a lower rate, that can add years of interest. Enter your true remaining term, watch for the term-extension warning, and consider matching the new term to the time you have left so you're comparing apples to apples.
Know Your Break-Even vs. How Long You'll Stay
The break-even point only matters relative to how long you'll keep the loan. If you break even in 23 months but expect to sell or refinance again in a year, the deal loses money. If you'll stay well past break-even, every month afterward is real savings. Compare the break-even months the calculator shows against your honest plans for the home.
Weigh Roll-In vs. Paying Upfront
Rolling closing costs into the loan means nothing due at closing, but you finance those costs — and pay interest on them — for the full term. Paying upfront keeps the balance, payment, and lifetime interest lower. Toggle the closing-costs treatment in the calculator to see the exact tradeoff, then choose based on your cash on hand and the lifetime-savings difference.
Common Ways People Use a Refinance Calculator
Lower the Rate to Cut the Payment
Lower RateThe classic refinance: market rates have fallen since you borrowed, so you swap your loan for one at a lower rate to shrink your monthly payment. Enter your current balance, rate, and remaining term against the new lower rate to see your monthly savings and how quickly the closing costs are recouped.
Shorten the Term to Save Interest
Shorter TermRefinancing from a 30-year into a 15- or 20-year loan usually raises the monthly payment but can slash total interest. Because this tool leads with net lifetime savings, a higher-payment, shorter-term refinance shows up correctly as a potentially excellent move rather than something that "never breaks even."
Move From an ARM Into a Fixed Rate
ARM to FixedHomeowners on an adjustable-rate loan often refinance into a fixed rate to lock in a predictable payment before the rate can reset higher. Conceptually, you enter the rate and term you would lock in as the new loan; the calculator compares it against your current loan so you can weigh the certainty against the cost.
Evaluate a No-Cost Refinance
No-CostA "no-cost" refinance carries $0 in upfront closing costs, usually in exchange for a slightly higher rate. Set closing costs to $0 to break even immediately, then judge the deal purely on net lifetime savings — or compare it against a paid-cost refinance at a lower rate to see which actually wins over the life of the loan.
What This Calculator Assumes
To keep results deterministic and evergreen, the comparison rests on a few clear assumptions:
- •Both loans are fixed-rate and fully amortizing: each loan has equal monthly, end-of-month payments and reaches a balance of exactly $0 at its final scheduled payment. ARMs, balloon, and interest-only loans are not modeled.
- •The current loan is modeled from today forward: we use your remaining balance, current rate, and remaining term — not the original loan amount or origination date — so the comparison pits the rest of your current loan fairly against the new one.
- •Closing costs are a single figure you enter: the tool never guesses lender fees, appraisal, title, or points from a maintained table. You choose whether to pay them upfront or roll them into the new balance, and the math adjusts the new payment and lifetime interest accordingly.
- •No taxes, PMI, escrow, or cash-out: the model excludes the mortgage-interest deduction, mortgage insurance, property-tax and insurance escrow, prepayment penalties, and any cash-out beyond your existing balance. Those depend on changing rules and your specific situation.
- •You supply the rates: the calculator never pulls live market rates or estimates a rate from your credit score. Default rates and terms are illustrative placeholders only; every result comes from the numbers you enter plus timeless amortization math.
Disclaimer: This tool provides estimates for personal planning and is not financial, tax, or lending advice. Actual costs and savings depend on your lender, credit profile, the rates available to you, and terms that change over time. Get a Loan Estimate from a lender and consult a qualified professional before refinancing.
Frequently Asked Questions
How does a refinance break-even point work?
The break-even point is how long it takes for your monthly savings to add up to what you paid in closing costs. The formula is simply closing costs ÷ monthly savings — for example, $5,000 in costs and $250/month saved breaks even in 20 months. If you plan to keep the home and loan past the break-even point, refinancing starts putting money back in your pocket; if you'll sell or refinance again before then, you'd lose money on the deal. This calculator shows the break-even in months and years and charts the exact moment your cumulative savings turn positive.
What's the difference between monthly savings and lifetime savings?
Monthly savings is just the drop in your payment (old payment minus new payment), which is what most ads highlight. Lifetime savings is the honest number: your remaining interest on the current loan minus the total interest on the new loan minus the closing costs. The two can disagree sharply — a lower payment achieved by stretching a 25-year balance into a fresh 30-year loan can still cost you more interest overall. This calculator shows both and warns you whenever a lower payment actually means paying more over the life of the loan.
When does refinancing actually make sense?
Refinancing tends to make sense when you can lower your interest rate enough that the monthly savings recoup the closing costs comfortably before you'd sell or move, or when you want to shorten your term to pay far less total interest. A common rule of thumb is looking for a rate at least about half a percentage point lower, but the real test is your break-even point and your net lifetime savings — both of which this tool calculates. It also depends on how long you'll keep the loan: the longer you stay past break-even, the more you save. Always weigh the lifetime number, not just the lower payment.
Should I roll the closing costs into the loan or pay them upfront?
Paying upfront means an out-of-pocket cost at closing but a lower new balance, lower payment, and less interest over time. Rolling the costs into the new loan means $0 due at closing, but you finance those costs over the full term, which raises your payment and adds interest on top of the costs themselves. This calculator models both: toggle the closing-costs treatment and watch the new payment, break-even, and lifetime savings update. Rolling costs in is convenient, but the lifetime-savings figure will show you what that convenience costs.
Should I refinance to a shorter term?
Refinancing from, say, a 30-year into a 15-year loan usually raises your monthly payment, so a naive break-even calculator might flag it as "never breaks even." But a shorter term at a lower rate can slash your total interest dramatically, making it one of the best refinances financially. That's why this calculator leads with net lifetime savings, not just the monthly delta — so a beneficial shorter-term refinance isn't mislabeled as a bad deal. Enter a shorter new term and you'll see the payment rise while total interest falls.
Why is my break-even point different when I extend the loan term?
When you refinance into a longer term, your monthly payment drops more, which can shorten the simple break-even point — but it also means you're paying for many more months and usually more total interest. So a fast break-even can be misleading: you might recoup the closing costs quickly yet still pay more over the life of the loan. This calculator pairs the break-even with the term-aware lifetime-savings number and shows a warning when a lower payment hides a higher total cost.
Does this calculator use my credit score or current market rates?
No. It's a pure math tool — you supply the rates your lender quotes (or ones you're considering) along with your balance, terms, and closing costs, and it computes the payments, savings, and break-even. We deliberately don't estimate rates from a credit score or pull live market rates, because real rates depend on your lender, full credit profile, and constantly changing markets. Get a quoted rate from a lender, then enter it here for an accurate comparison.
What should I enter for my current remaining term and balance?
Use your current remaining balance (the payoff amount you still owe today, not the original loan amount) and the time left on your loan, not the original term. For example, if you took out a 30-year mortgage five years ago, your remaining term is about 25 years. Using the remaining figures keeps the comparison fair — it pits the rest of your current loan against the new loan, which is exactly the decision you're making. You can find both numbers on your latest mortgage statement.
What are typical refinance closing costs?
Refinance closing costs generally run a few percent of the loan amount and cover things like lender fees, an appraisal, title work, and any discount points you buy. They vary widely by lender, location, and loan size, so this calculator asks you to enter a single closing-costs figure rather than guessing from a maintained fee table. Get a Loan Estimate from your lender for an accurate number, then enter it here. A "no-cost" refinance (costs of $0 here) usually just builds those costs into a higher rate instead.
What happens at a 0% interest rate?
At 0% the payment is simply the balance divided by the number of months, and total interest is zero — the calculator uses the special case M = P ÷ n to avoid dividing by zero. This is unusual for real mortgages but useful for promotional or interest-free scenarios. If only one of the two loans is at 0%, the comparison still works normally, with that loan contributing no interest to its side of the lifetime-savings calculation.
Why doesn't the schedule's last balance exactly match my own math?
Tiny differences come from rounding for display. The calculator keeps full precision internally and only rounds when showing currency to two decimals, then forces each loan's final balance to exactly $0 to absorb floating-point drift. Hand calculations that round at each step will drift by a few cents. The displayed total interest reconciles with the amortization schedule within a penny.
Can I share or save my refinance comparison?
Yes. Every input is stored in the page's URL (compressed), so you can copy the link to share an exact scenario or bookmark it to return later — reloading restores the same numbers. You can also export a PDF of your full current-vs-new comparison. None of the major bank or comparison-site refinance calculators offer link sharing or PDF export.