🔁 Refinance Calculator

Use this refinance calculator to compare your current loan to a new refinance offer. Enter your remaining balance, interest rate, term, and potential refi terms to see monthly savings, total interest savings, and your approximate break-even point after closing costs.

Refinance results and savings summary

Enter your remaining balance, current rate and term, plus the new refinance terms above, then select Calculate Refinance Savings to see your projected monthly savings, interest savings, and break-even point.

New refinance loan amortization schedule

After you calculate your refinance scenario, this section will show a month-by-month breakdown of the new loan, including payment, interest, principal, and remaining balance.

Refinance calculator inputs and key terms

These inputs help you compare your remaining current loan to a potential refinance so you can see how a new rate, term, and closing costs might affect your payment and total interest.

• Current loan balance: The outstanding principal you still owe on your existing loan. You can find this on your most recent statement or by checking with your lender or servicer.
• Current APR: The annual percentage rate on your existing loan. It reflects the interest rate plus certain costs, and is useful for comparing loan offers.
• Remaining term (years): About how many years are left if you continue making the scheduled payments on your current loan.
• New APR: The annual interest rate being offered on the refinance. A lower APR can reduce both your monthly payment and total interest, depending on the new term and costs.
• New loan term: The number of years over which you will repay the refinanced loan. Extending the term can reduce your monthly payment but may increase total interest paid.
• Closing costs: Fees associated with the refinance, such as origination charges, appraisal, title, and recording fees. You can usually pay these at closing or roll them into the new loan.
• Roll into new loan vs pay upfront: Rolling closing costs into the new principal increases the amount financed and the interest you pay over time, while paying them upfront raises your immediate out-of-pocket cost but reduces your long-term interest.
• Monthly savings: The difference between your current monthly payment and the new refinance payment. Positive values mean the refi payment is lower.
• Interest savings: The difference between the total interest you would pay if you keep the current loan and the interest on the new refinanced loan.
• Break-even point: An estimate of how many months it might take for monthly savings to “pay back” the closing costs of refinancing, assuming your payments and rates remain the same.

Formulas used in the Refinance Calculator

This refinance calculator uses standard fixed-rate loan formulas to estimate monthly payments, total interest, and potential savings from switching to a new loan.

Monthly payment formula for each loan

Let:
P = principal (loan amount)
r = annual interest rate (APR) as a decimal (for example, 0.065 for 6.5%)
i = monthly interest rate = r ÷ 12
n = total number of payments in months (years × 12)
For a fixed-rate loan with interest:
Payment = P × i ÷ (1 − (1 + i)−n)
If the APR is exactly 0%, the payment simplifies to:
Payment = P ÷ n

Total paid and total interest

Once the monthly payment is known:
Total paid = Payment × n
Total interest = Total paid − P
For the current loan, P is the remaining balance and n is the remaining number of months. For the new refinance loan, P may include closing costs if you choose to roll them into the principal.

Monthly savings, interest savings, and break-even point

Monthly savings are calculated as:
Monthly savings = Current payment − New payment
Interest savings are:
Interest savings = Current total interest − New total interest
A simple break-even estimate uses:
Break-even months ≈ Closing costs ÷ Monthly savings
This assumes monthly savings are positive and closing costs are greater than zero.

Amortization schedule for the new refinance loan

For each month, starting from the current balance of the refinanced loan:
Interest = Current balance × i
Principal = Payment − Interest
New balance = Current balance − Principal
The calculator repeats this for each payment until the balance reaches zero, producing the month-by-month schedule shown in the table.

Actual lender calculations may differ slightly due to rounding rules, payment timing, escrow requirements, and additional fees. Always confirm details with your lender’s official loan estimate and closing disclosure.

Refinance Calculator FAQs

• How do I know if refinancing will really save me money?
  Refinancing can save money if the combination of your new rate, term, and closing costs leads to lower total interest and reasonable monthly payments. This calculator compares your current remaining interest to a new refi scenario and estimates your monthly savings, net savings after closing costs, and break-even point so you can see whether the trade-off makes sense for your situation.
• What inputs are most important when evaluating a refinance?
  The most important inputs are your remaining balance, current APR, remaining term, new APR, new term, and total closing costs. Together they determine both your new payment and how much additional interest you will pay or save over time. Small changes in rate or term can have a big impact on long-term cost.
• Is it better to roll closing costs into the new loan or pay them upfront?
  Rolling closing costs into the new loan lowers your upfront cash requirement but increases the principal and interest you pay over time. Paying costs upfront increases what you need at closing but can reduce long-term interest. The best choice depends on your cash reserves, how long you plan to keep the loan, and your comfort with monthly payments. You can use this calculator to compare both approaches.
• What does the break-even point tell me?
  The break-even point estimates how many months it might take for your monthly savings from a refinance to “pay back” the closing costs. If you plan to keep the loan longer than this break-even period, the refinance is more likely to generate net savings. If you expect to sell or refinance again sooner, paying closing costs may not be worth it.
• Does a longer refinance term always save money?
  Not necessarily. Extending the term can reduce your monthly payment, which can help your budget, but it often increases the total interest paid over the life of the loan—even if the interest rate is lower. A shorter term with a slightly higher payment can sometimes save far more in interest. Comparing both scenarios in this calculator can help you see the trade-offs clearly.
• Should I talk to a professional before refinancing?
  Yes. While this calculator is useful for planning and comparison, it does not account for every detail of your financial situation or every lender policy. A licensed loan officer or financial professional can review your credit, income, goals, and available loan products to help you decide whether refinancing is a good fit.