Refinance Calculator

Compare your current loan with a refinance offer to see whether lower payments, lower interest cost, or a different term actually justify the closing costs.

Current balance

Current rate

Remaining term (years)

New rate

New term (years)

Closing costs

New monthly payment

$1,871.26

Monthly savings

$161.28

Lifetime savings

$43,883.73

Break-even

27.9 mo

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

Calculation notes and example

Refinance comparison formula used here

A refinance comparison calculates the payment on the current loan, the payment on the proposed loan, closing costs, and the change in interest over the expected holding period. Monthly savings are useful, but they are not enough by themselves. The calculator also checks break-even timing because a lower payment can still be a bad deal if upfront costs are not recovered before you sell, refinance again, or pay off the loan.

Worked example

If refinancing saves $225 per month but costs $5,400, the simple break-even is 24 months. If you expect to keep the loan five years, the payment savings may clear the cost. If you plan to move in 18 months, the refinance probably fails the cash test. Compare this page with refinance break-even for a focused recovery-period answer and with mortgage points if the new quote includes rate buydown points.

Edge cases and practical tips

Resetting to a new 30-year term can lower the payment while increasing lifetime interest.
No-cost refinances usually mean costs are built into the rate or loan balance.
Use your realistic hold period, not the full loan term, when judging the decision.

Useful companion tools: Refinance Break-Even Calculator, Mortgage Points Calculator, Amortization Calculator, and Closing Cost Calculator.

How to interpret the refinance result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this refinance estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter your remaining balance, current rate, and the years left on the existing loan.
Add the proposed refinance rate and the new term you are considering.
Include closing costs so the comparison reflects the real upfront cost of replacing the loan.
Review the new payment, monthly savings, lifetime cost change, and break-even point before deciding whether the refinance is worth it.

Frequently Asked Questions

What is refinance break-even?

Break-even is the number of months it takes for your monthly payment savings to recover the closing costs of the new loan.

Does a lower payment always mean the refinance is better?

No. A lower payment can come from stretching the term, and a longer term may still increase total interest even if the monthly payment looks better.

Should I always include closing costs?

Yes. Closing costs reduce the benefit of refinancing and can make a seemingly attractive rate drop less valuable than it first appears.

When does refinancing usually make the most sense?

It often makes the most sense when you can lower the rate meaningfully, keep a reasonable term, and expect to hold the loan long enough to pass the break-even point.