Refinance Calculator

Compare refinancing options, payments, interest and potential savings. Enter your current loan and proposed refinance terms to estimate the payment difference, interest savings and break-even period.

Current Loan

Enter the outstanding balance on your current loan.

%
years

Refinance Loan

%
years

Fees and other upfront costs associated with refinancing.

Refinancing comparison

The calculator compares scheduled payments and interest on the current loan with the proposed refinance. It also estimates the break-even point after refinancing costs.

Break-Even Analysis

Run the calculator to estimate how long it may take for monthly payment savings to recover refinancing costs.

Refinance Calculation

Monthly Payment = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

P = Loan balance
r = Monthly interest rate
n = Number of monthly payments

Payment Savings = Current Monthly Payment − New Monthly Payment
Net Savings = Current Remaining Interest − New Interest − Refinancing Costs

The calculator compares the loans using the entered terms. It does not account for taxes, insurance, lender-specific fees not entered, penalties or changes in the loan balance between calculations.

How to Use the Refinance Calculator

1

Enter Current Loan Details

Enter the outstanding balance, current interest rate and remaining term.

2

Enter Refinance Terms

Enter the proposed interest rate, new term and estimated refinancing costs.

3

Compare Payments

Review the current and new monthly payments and the difference between them.

4

Check Break-Even and Savings

Use the estimated break-even period and net savings to assess the refinancing scenario.

Example Refinance Calculation

1,000,000 balance with 5 years remaining

  • Current Rate = 10%
  • Current Term Remaining = 5 years
  • New Rate = 8%
  • New Term = 5 years
  • Refinancing Costs = 20,000

The calculator compares the two payment schedules and estimates potential interest and payment savings.

Use the live calculator above for the exact result based on your inputs.

Factors to Consider Before Refinancing

Interest Rate

A lower rate can reduce the interest charged, but the benefit depends on the new term and refinancing costs.

Loan Term

Extending the term can lower the payment while potentially increasing total interest over the longer period.

Refinancing Costs

Upfront fees reduce the financial benefit of refinancing and affect the break-even point.

Payment Savings

A lower monthly payment can improve cash flow, but payment savings alone do not guarantee lower total cost.

Frequently Asked Questions

Refinancing replaces an existing loan with a new loan, often to change the interest rate, repayment term or other loan conditions.
It is the estimated number of months required for cumulative monthly payment savings to recover the refinancing costs.
It can. A lower interest rate or longer repayment term may reduce the scheduled monthly payment.
Yes. Extending the repayment term can reduce the monthly payment while increasing the total interest paid over the longer period.
No. Enter the refinancing costs you expect. Other charges, penalties or taxes should be added separately if applicable.

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