Refinance Calculator
Compare your current loan payment to a refinanced payment, see your monthly savings, and find the breakeven point where closing costs pay for themselves.
Calculator verified • Last updated: August 2026
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Payment Comparison
Refinance Summary
| Current Monthly Payment | — |
| New Monthly Payment | — |
| Monthly Savings | — |
| Closing Costs | — |
| Breakeven Point | — |
| Total Interest — Remaining on Current Loan | — |
| Total Interest — New Loan | — |
Compare Terms at Your New Rate
| Term | New Payment | Breakeven |
|---|---|---|
| 15 years | — | — |
| 20 years | — | — |
| 30 years | — | — |
How Refinance Savings and Breakeven Are Calculated
Refinancing replaces your current loan's remaining balance with a brand-new loan at a new rate and term. Both payments come from the same fixed-rate amortization formula — this calculator computes each side, then compares them:
M: the monthly payment, computed once for your current loan and once for the new loan.
P: your current remaining balance, used as the principal for both calculations.
r: the monthly interest rate for that side (current rate or new rate, divided by 12).
n: the number of monthly payments for that side (current remaining term or new term, in years × 12).
The Breakeven Point Is Simpler Than It Sounds
Once you know your monthly savings, the breakeven point is just closing costs divided by that monthly savings figure — the number of months it takes for the money you save each month to add up to what refinancing cost you upfront. Every month after the breakeven point is money back in your pocket that wouldn't exist without refinancing.
A Lower Payment Doesn't Always Mean Lower Total Cost
Stretching a loan back out to a fresh 30-year term at a lower rate often produces real monthly savings, but it can also mean paying interest for years longer than your original loan would have run — so a positive breakeven result answers "does this refinance pay for itself in monthly cash flow," not "will I pay less interest overall." Compare the new term length against how many years you have left on your current loan before deciding.
Worked Example
A 280,000-dollar remaining balance at 7.25% with 27 years left, refinanced into a new 30-year loan at 6.25%: the current payment (r = 7.25% ÷ 12, n = 324) comes out to about 1,972 dollars a month. The new payment (r = 6.25% ÷ 12, n = 360) comes out to about 1,724 dollars a month — a monthly savings of about 248 dollars. With 4,500 dollars in closing costs, the breakeven point is 4,500 ÷ 248, or about 19 months.
Refinance Terms You Should Know
Closing Costs — the upfront fees charged to originate the new loan (appraisal, title, lender fees, and similar), which the breakeven calculation assumes you pay in cash rather than rolling into the new balance.
Breakeven Point — how many months of savings it takes to recover your closing costs; refinancing becomes a net gain only after this point.
Remaining Term — how many years are actually left on your current loan, not the loan's original term — the figure this calculator needs to compute your true current payment.
This calculator provides an estimate for planning purposes only, not a loan offer or financial advice. It does not account for rolling closing costs into the new loan balance, rate-lock timing, or taxes — confirm exact figures with a lender.
Frequently Asked Questions
How is the refinance breakeven point calculated?
Divide your closing costs by your monthly savings: closing costs ÷ (current payment − new payment). If refinancing saves you 150 dollars a month and costs 3,000 dollars in closing costs, the breakeven point is 3,000 ÷ 150 = 20 months — after that, every month is net savings.
What if refinancing doesn't lower my monthly payment?
A breakeven point only makes sense when refinancing actually lowers your payment. If the new rate or term produces a higher payment than your current loan, this calculator labels it a Monthly Increase instead of savings and doesn't compute a breakeven month, since closing costs would never be recovered through lower payments alone.
Does refinancing always restart my loan's interest clock?
This calculator compares payments on your current remaining balance at your current remaining term versus a brand-new term at the new rate — it does not account for how much total interest you already paid on the original loan before refinancing. A lower monthly payment from stretching the term back out can still mean more total interest paid overall, even when the rate itself is lower.