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Refinance Calculator
Find out whether refinancing a loan will save money by comparing your current payment with a new rate and term, including fees.
Refinancing swaps an old loan for a cheaper one, but the swap itself costs fees. This calculator weighs both sides: the new payment, the total saving, and the break-even month when the savings finally pass the costs.
How to use this calculator
- Enter your current balance, current rate and remaining term.
- Enter the new rate and new term being offered.
- Add the refinance fees and closing costs.
- Press calculate to see the new payment, total saving and break-even point.
The break-even month runs the decision
If you will keep the loan well past the break-even month, refinancing wins. If you may sell or repay before it, the fees eat the gain. Also beware restarting a long term: a lower payment built on a longer term can cost more overall even at a lower rate, which the total figures here expose.
Frequently asked questions
When does refinancing make sense?
When the rate drop is meaningful (often around 0.75 to 1% or more) and you will stay past the break-even point with room to spare.
What costs should I include?
Application and valuation fees, legal or closing costs, and any penalty for leaving the current loan early. All of them belong in the break-even maths.
Should I roll the fees into the new loan?
It preserves cash but you then pay interest on the fees for years. Comparing both ways in the calculator usually settles it.