Refinance Calculator
See whether refinancing a loan saves money: your new payment, the monthly saving, how long it takes to recover the closing costs, and the saving over the rest of the loan. It runs in your browser.
Also searched as: mortgage refinance calculator · refinance break even calculator · should i refinance calculator · loan refinance calculator
Updated November 9, 2026
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How to use it
- 1
Enter your current loan
Type the balance, the current rate and the years left.
- 2
Enter the new loan
Add the new rate, the new term and the closing costs.
- 3
Read the saving
See the new payment, the break-even time and the saving overall.
Questions about refinance calculator
What is the break-even point?
The time it takes for the monthly saving to repay the closing costs. If you will move or repay before then, refinancing may not pay.
What if I add the costs to the loan?
Then you pay nothing upfront and the costs are repaid with interest through the new loan, so the break-even point does not apply.
Why compare totals?
A lower payment can come from a longer term, which means more years of payments. The total saving shows whether you really come out ahead.
The break-even point
Take a 250,000 balance at 7% with 25 years left. Refinancing to 5.5% over 25 years, with 4,000 of closing costs, lowers the payment from 1,766.95 to 1,535.22, a saving of 231.73 a month. The costs are earned back after 1 year 6 months, and over the rest of the loan you save 65,518.78 after paying them.
| New rate | New payment | Monthly saving | Time to recover the costs |
|---|---|---|---|
| 4.5% | 1,389.58 | 377.37 | 11 months |
| 5% | 1,461.48 | 305.47 | 1 year 2 months |
| 5.5% | 1,535.22 | 231.73 | 1 year 6 months |
| 6% | 1,610.75 | 156.19 | 2 years 2 months |
| 6.5% | 1,688.02 | 78.93 | 4 years 3 months |
Watch the term and the costs
A longer new term can make the payment look better while costing more overall. With the same 5.5% rate over 30 years instead of 25, the payment drops to 1,419.47, but the saving over the rest of the loan falls from 65,518.78 to 15,074.30, because you pay for five more years.
You can add the closing costs to the new loan instead of paying them upfront. That leaves no cash to find, but you pay interest on the costs, and the payment becomes 1,559.78. In that case the break-even time does not apply, so compare the saving over the rest of the loan.