Your current loan
The new loan
How to calculate refinance savings
The calculator works out your current monthly payment from your balance, rate and years remaining, and a new payment from the new rate and term on the same balance. The difference is your monthly saving. Dividing the closing costs by that saving gives the number of months until refinancing pays for itself.
Example: refinancing a $250,000 balance from 7% with 25 years left to a new 6% 30-year loan saves about $268 a month. With $4,000 in closing costs, that breaks even in about 15 months.
Why the term matters
A longer new term spreads the same balance over more payments, which lowers the monthly payment even if the rate barely changes — but it can mean paying more interest overall. Compare the total interest saved figure, not just the monthly payment, before deciding.
Estimates only, for general information — not a loan offer or financial advice. Last updated
Frequently asked questions
What is a breakeven point?
The number of months of monthly savings it takes to cover the closing costs of refinancing. Refinancing tends to pay off if you plan to keep the loan past that point.
Should I refinance for a lower payment or a shorter term?
A longer new term usually lowers the monthly payment but can add total interest. A shorter term raises the payment but can cut total interest. Compare both by changing the new term above.
Does this account for the balance changing?
It assumes you refinance your current balance as entered, with no cash out added or extra paid down first.
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