Current Payment
$1,766.95
Loan Refinance Calculator
See if refinancing your loan will save you money, and find the breakeven point.
Monthly Payment Savings
$347.48
New Payment
$1,419.47
Breakeven
14.4 months
Lifetime Interest Saved
$19,074.30
How to use the Loan Refinance Calculator
The Loan Refinance Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Current Balance — a dollar amount.
- Current Rate — a percentage (enter 6 for 6%).
- Remaining Term (yrs) — a number.
- New Rate — a percentage (enter 6 for 6%).
- New Term (yrs) — a number.
- Closing Costs — a dollar amount.
The formula
The calculator amortizes your balance twice — at the old rate/term and the new one — and divides the upfront closing costs by the monthly saving to find the breakeven point:
Breakeven months = Closing costs ÷ (Old payment − New payment)- Old / New payment
- each from the standard amortization formula M = P·r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)
- Closing costs
- the fees to refinance (origination, appraisal, title…)
A lower monthly payment isn't automatically a saving: resetting the clock to a fresh 30-year term can raise lifetime interest even as the payment falls. Compare the lifetime-interest figure, not just the monthly one.
Worked example
Using the example values — Current Balance $250,000.00, Current Rate 7%, Remaining Term (yrs) 25, New Rate 5.5%, New Term (yrs) 30, Closing Costs $5,000.00 — the Loan Refinance Calculator returns a Monthly Payment Savings of $347.48. It also reports Current Payment ($1,766.95), New Payment ($1,419.47), Breakeven (14.4 months).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Breakeven point
- How many months of savings it takes to recoup the closing costs.
- Closing costs
- The upfront fees charged to complete a refinance.
- Amortization
- Repaying a loan in level installments split between interest and principal.
- Lifetime interest
- Total interest paid over the whole loan — the true cost to compare.
Frequently asked questions
When is refinancing worth it?
Generally when you'll keep the loan well past the breakeven point and the lifetime interest actually falls. A move or another refinance before breakeven means the closing costs weren't recovered.
Does a lower payment always save money?
No. Extending the term lowers the payment but can increase total interest. Watch the "lifetime interest saved" figure — if it's negative, the lower payment is costing you overall.
What counts as closing costs?
Origination or application fees, appraisal, title insurance and recording fees. Rolling them into the loan avoids upfront cash but adds to the balance you pay interest on.