How to use the Refinance Calculator
The refinance calculator compares your current loan with a new one and shows the monthly saving and break-even time.
Open the Refinance Calculator →
What you need to enter
- Current balance ($)
- Current rate (%)
- Years left on current loan
- New rate (%)
- New term (years)
- Closing costs ($)
The formula
Break-even months = closing costs ÷ monthly saving. Payments use the standard loan formula for each loan.
Worked example
Using the default values in the calculator:
- Current balance ($): 280000
- Current rate (%): 7
- Years left on current loan: 27
- New rate (%): 5.75
- New term (years): 30
- Closing costs ($): 4500
| New monthly payment | $1,634.00 |
| Current monthly payment | $1,925.88 |
| Monthly savings | $291.88 |
| Break-even | 15.4 months |
| Total interest: current → new | $343,985.71 → $308,241.44 |
Tips for better results
- Only refinance if you stay in the home beyond the break-even time.
- Compare total interest, especially when you restart the term.
Common mistakes to avoid
- Ignoring closing costs.
- Extending the term and paying more interest overall.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.