Refinance Calculator
Compare current and refinance loan payments, closing costs, break-even months, and lifetime savings. Fast client-side planning tool.
Added May 4, 2026
Scenario A
Input
Result
Enter a value for current loan balance to see your result.
How it works
Compares an existing loan with a refinanced loan to estimate monthly savings, break-even time, and lifetime savings after closing costs.
Formula
Monthly Payment = Balance × r / (1 − (1 + r)^(−n)) Monthly Savings = Current Payment − New Payment Break-even = Closing Costs ÷ Monthly Savings
- r
- Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- Remaining monthly payments (years × 12)
Step by step
- 01Calculate the current monthly payment from the remaining balance, current rate, and remaining term.
- 02Calculate the new monthly payment from the refinance rate and new term.
- 03Subtract the new payment from the current payment to estimate monthly cash-flow savings.
- 04Divide closing costs by monthly savings to estimate the break-even month.
Examples
$240,000 from 7% to 6%
The refinance saves about $157 per month, so $5,000 of costs break even in roughly 32 months.
Inputs
- Current loan balance:
- 240000
- Current annual rate:
- 7
- Years remaining:
- 25
- New annual rate:
- 6
- New loan term:
- 25
- Closing costs:
- 5000
Result
- Monthly savings:
- 157.09
- Break-even months:
- 32
Frequently asked questions
What is refinance break even?
It is the number of months needed for monthly payment savings to recover closing costs.
Can lifetime savings be negative?
Yes. A refinance can lower the monthly payment while increasing total paid if the new term is much longer.