Refinance Calculator

FinanceLoan Loan Tools · Tool 7 of 10

Refinance Calculator

Practical tip: a lower rate alone does not make a refinance worth it. Weigh the monthly saving against the closing costs and the break-even point.

Run your numbers

Estimated new monthly payment
Current monthly payment
Monthly saving
Break-even point
Interest left on current loan
Interest on new loan
Bottom line
How it works: both payments use the loan formula, payment = P × r(1+r)n / ((1+r)n − 1), with r = annual rate ÷ 12 and n = months. Monthly saving = current payment − new payment. Break-even = closing costs ÷ monthly saving. Total interest = payment × months − balance.

How to use this tool

1

Enter your current loan balance — the payoff amount from your latest statement, not the original loan amount.

2

Enter your current rate and the months left on the loan, exactly as your servicer reports them.

3

Enter the refinance offer — the new rate, new term, and the closing costs from the Loan Estimate.

4

Press Calculate and check the break-even point. If you plan to keep the loan past break-even, the refinance usually pays off. Compare total interest too.

Keep reading: borrower guides

How Mortgage Refinancing Works, Start to Finish
Cash-Out Refinance Explained: How It Works
How Do Refinance Calculators Work? A Borrower’s Guide

Estimates only, not financial advice. Check final terms with your lender.