Refinance Calculator
Compare your current loan with a new one to see the monthly saving and when it pays for itself.
How to use the Refinance Calculator
- Enter your current loan balance, rate and the months you have left.
- Enter the new rate and term you are being offered.
- Add the closing costs of refinancing.
- See the new payment, your monthly saving and the break-even point.
Break-even months = Closing costs ÷ Monthly saving
About the Refinance Calculator
Refinancing replaces your existing loan with a new one — usually to grab a lower rate, but sometimes to change the term. The catch is that refinancing has upfront costs, so a lower payment does not automatically mean you come out ahead. This calculator compares the two loans directly: it prices the payment on your current balance at both the old and the new rate, shows the monthly saving, and works out the break-even point — the number of months of savings it takes to recover the closing costs. Refinance and move before that point and you lose money; stay past it and the savings are real.
It also surfaces a trap that a payment-only view hides. Stretching the balance back out over a fresh long term can lower the monthly payment while raising what you pay over the life of the loan, so the tool shows the lifetime cost change alongside the monthly saving. A payment that drops but a lifetime cost that rises is a common and expensive outcome worth seeing clearly.
The comparison uses standard amortisation and the numbers you enter, so it is only as good as your quote — get the real rate, term and closing costs from the lender. For the underlying payment on either loan, use the mortgage calculator or the loan calculator.
Frequently asked questions
What is the break-even point?
It is how long it takes for your monthly savings to cover the closing costs of refinancing. If closing costs are $4,000 and you save $200 a month, the break-even is 20 months. Refinancing pays off only if you keep the loan past that point.
Can a lower payment still cost more?
Yes. If you refinance into a longer term, the monthly payment can fall while the total interest over the life of the loan rises. The calculator shows the lifetime cost change so you can spot this.
Does this include closing costs?
Yes. Closing costs are added to the new loan's lifetime cost and drive the break-even calculation. Enter the real figure from your lender's quote for an accurate comparison.