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Refinance calculator

Compare your current loan with a new one: the new payment, monthly savings, closing costs, the break-even month and the lifetime difference.

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Your current loan

Principal and interest only. Leave empty to work it out.

The new loan

Should you refinance?

New payment $1,498.88, monthly savings $348.60.

New monthly payment
$1,498.88
Now $1,847.48
Monthly savings
$348.60
Break-even
15 months
Dec 2027
Lifetime savings
$9,648.99
All payments and costs
Current loan and new loan compared
ItemCurrent loanNew loan
Monthly payment$1,847.48$1,498.88
Loan amount$250,000.00$250,000.00
Payments left25 years30 years
Total interest$304,242.36$289,593.37
Closing costs paid up front$0.00$5,000.00
Total cost$554,242.36$544,593.37

The savings repay the closing costs after 15 months; if you keep the new loan to the end you pay $9,648.99 less in total ($14,648.99 less interest).

Principal and interest only (taxes and insurance do not change with a refinance); the new loan is for the balance you owe, plus the costs if you add them to it. This is an estimate to help you plan, not financial advice: lenders, card issuers and investments set their own terms, fees and rounding. Everything is calculated in your browser; nothing you type is sent anywhere.

How it works

This refinance calculator compares the loan you have with the one you are offered. Enter what you still owe, your current rate and the time left, then the new rate, term and closing costs: it shows the new monthly payment, what you save each month, the month the savings repay the costs (the break-even point) and the difference in total interest and total cost over both loans. With the defaults, refinancing $250,000 from 7.5% with 25 years left into a 30-year loan at 6% lowers the payment by $348.60 and breaks even after 15 months.

A lower payment is not always a saving: stretching the loan over a new 30-year term can cost more interest in total even at a lower rate. The calculator shows both numbers so you can see which applies to you.

Everything is principal and interest; property tax and insurance do not change when you refinance. Every figure here is an estimate to help you plan, not financial advice: lenders, card issuers and investments set their own terms, fees and rounding.

How the refinance comparison works

Both loans use the fixed-rate payment formula M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) and a month-by-month schedule rounded to the cent. Your current payment is worked out from the balance, the rate and the months left, unless you enter it.

  • Monthly savings = current payment − new payment.
  • Break-even month = closing costs ÷ monthly savings, rounded up. Stay in the home (and keep the loan) past that month and the refinance has paid for itself.
  • Lifetime difference = every payment left on the current loan − (every payment on the new loan + closing costs paid up front). If you add the costs to the loan, you pay them, with interest, through the new payments instead.

Refinance example: $300,000 left at 7.5% with 25 years to go

Current payment $2,216.97. Closing costs of $6,000 paid up front.

Refinancing $300,000 from 7.5% (25 years left): new payment, savings and break-even (USD)
New loanNew paymentMonthly savingsBreak-evenLifetime savings
30 years at 5.5%$1,703.37$513.6012 months$45,884
30 years at 6%$1,798.65$418.3215 months$11,579
30 years at 6.5%$1,896.20$320.7719 months$23,543 more
30 years at 7%$1,995.91$221.0628 months$59,430 more
15 years at 5.5%$2,451.25$234.28 moreNever$217,869
15 years at 6%$2,531.57$314.60 moreNever$203,411

The 30-year loans lower the payment the most but restart the clock; the 15-year loans cost more each month and save the most in total.

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How to use it

  1. Enter the balance you owe, your current interest rate and the years left on the loan (and your current payment if you know it).
  2. Enter the new interest rate, the new term and the closing costs; tick the box if they will be added to the new loan.
  3. Read the new payment, the monthly savings, the break-even month and the lifetime savings or extra cost.
  4. Compare terms: a 15- or 20-year refinance usually saves the most interest; download both schedules as CSV.

Frequently asked questions

When is it worth refinancing?

When the monthly savings repay the closing costs well before you expect to sell or refinance again, and the total cost over the loan also falls. A common rule of thumb is a rate at least 0.75 to 1 percentage point lower, but the break-even month and the lifetime difference on this page are a better test for your own numbers.

How is the break-even point calculated?

Closing costs ÷ monthly savings, rounded up to a whole month. With $5,000 of costs and $350 a month of savings, the refinance pays for itself in the 15th month. If the new payment is not lower, there is no break-even.

Why can a lower rate cost more in total?

Because a new 30-year loan starts the repayment clock again. If you had 22 years left, you will pay interest for 30 more years instead of 22, and that can outweigh a lower rate. Choosing a shorter term, or keeping your old payment on the new loan, avoids it.

Should I add the closing costs to the loan?

Adding them means no cash up front, but you pay interest on them for the life of the loan and your balance starts higher. Tick the box to see the difference in the payment and the lifetime cost.

What closing costs should I expect?

Often 2% to 5% of the loan amount in the US: lender fees, appraisal, title insurance and recording fees, plus any points you buy. Your lender’s Loan Estimate lists the exact figures.

Does it include taxes and insurance?

No. Property tax and home insurance stay the same when you refinance, so they do not change the comparison. Only principal and interest are compared.

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