Loan Refinance Calculator

Compare a current loan with a proposed refinance, including closing costs and estimated break-even time.

What This Loan Refinance Calculator Calculates

This calculator compares the payment and remaining total interest on an existing fixed-rate loan with a proposed refinance. It also estimates how long monthly payment savings would take to recover closing costs.

Formula and Method

Payment = P × i ÷ [1 − (1 + i)^−n]; Break-even months = closing costs ÷ monthly payment savings.

The result uses only the values entered on this page. No account or sign-in is required, and the calculator itself runs locally in your browser.

How to Use the Calculator

1. Enter the requested amount, rate, term, or cash-flow values using consistent units.
2. Check whether a percentage is annual, periodic, nominal, or effective as indicated by the field label.
3. Select Calculate and review the main result plus the supporting figures.
4. Use Copy, Share, or Save Result Image only after you have reviewed the assumptions.

Worked Example

Refinancing a $200,000 balance from 7% to 5.75% can reduce the monthly payment, but closing costs and a reset loan term can change the total savings.

Common Uses

• Estimate monthly savings from a lower rate.
• Calculate a simple closing-cost break-even period.
• Compare remaining total payments under current and refinanced terms.

How to Interpret the Result

The result is an estimate based on a simplified mathematical model. Compare it with the supporting figures rather than relying on one number alone. For borrowing or savings products, actual rates, fees, payment dates, taxes, and institutional rules can change the final amount.

Important Notes and Limitations

Refinancing decisions can involve fees, taxes, appraisal costs, prepayment penalties, changing insurance costs, and tax consequences that are outside this calculator. For important financial decisions, confirm current product terms and calculations with the relevant bank, lender, employer, accountant, or financial professional.

Frequently Asked Questions

What is refinance break-even?

It is the approximate number of months of payment savings needed to recover closing costs.

Should I finance the closing costs?

Financing costs increases the new principal; paying upfront requires more cash at closing.

Can refinancing lower payment but increase total cost?

Yes. Extending the repayment term can reduce monthly payments while increasing the time you pay interest.