Loan Refinance Calculator
Enter your remaining balance and term, your current rate and the new rate, plus fees, to see how much your payment drops, the interest you save, what is left after costs and how many months until you break even.
| Now | Refinanced |
|---|
Assumes fixed rates and level payments over the same remaining term. Costs = balance × penalty rate + other costs. Estimate only, not financial advice.
How to use the refinance calculator
- Enter your remaining balance and months left — both are on your loan statement.
- Enter your current rate and the new rate you were offered, plus any prepayment penalty and closing costs.
- If net savings are above zero, refinancing pays off on paper; the break-even month is when savings overtake the costs.
Before you refinance
- Short remaining terms save less. Interest accrues on the balance, so the same rate cut is worth less near the end of a loan.
- Count every cost. Appraisal, title, origination and recording fees often total 2–5% of the balance on a mortgage.
- Restarting the clock at 30 years lowers the payment but can raise total interest — keep the term the same to compare fairly, as this calculator does.
FAQ
When does refinancing make sense?
When the interest you save over the remaining term is larger than the costs (prepayment penalty, closing costs). Bigger rate gaps and longer remaining terms save more.
How much does a 1-point lower rate save?
On a $300,000 balance with 25 years left, going from 6% to 5% cuts the payment by about $179 a month and saves roughly $53,700 in interest.
What is the break-even month?
Total refinance costs divided by the monthly payment reduction. After that many months, the savings exceed what you paid to refinance.
Does this include closing costs?
Yes — put the prepayment penalty rate in the fee field and closing or other costs in the other-costs field.
Is the result exact?
It assumes a fixed rate and level (amortizing) payments. Lenders' offers depend on credit, income and fees, so treat it as an estimate.