Refinance Calculator
Calculate your break-even point and see if refinancing saves you money
The result is an estimate from the numbers you entered. It is not financial, investment or tax advice and not an offer of credit — the actual terms are set by your bank. Check important decisions with a qualified specialist. Full disclaimer
How to Use
Current Loan
Enter the balance you still owe, the current rate and the remaining term.
New Loan
Enter the new rate and the new term.
Refinance Closing Costs
Enter what the new loan costs to arrange: valuation, insurance, the bank’s fee.
Read the verdict, then the schedule
The verdict line tells you whether refinancing pays and when it breaks even; the result recalculates as you type, and the schedule below shows the months behind it.
Refinancing pays off when the monthly saving covers the costs before you plan to sell or repay — the break-even line in the result shows exactly when.
Optimization Guide & Technical Info
When should you refinance your mortgage?
Refinancing means replacing your current mortgage with a new one. People usually refinance to lower their interest rate, shrink their monthly payment, or change the loan term (e.g., switching from a 30-year to a 15-year mortgage to pay off the house faster).
Refinancing isn't free: there are closing costs to pay up front. The break-even point is how many months your monthly savings need to cover them. If it is 36 months but you plan to sell the house in 24, refinancing loses you money. This calculator works out that exact break-even timeline for you.
Key Features
- Compare current vs new mortgage side by side
- Calculate monthly payment savings
- Show total interest savings over the life of the loan
- Break-even analysis — how many months until savings exceed closing costs
- Include closing costs and fees in the calculation
- Visualize cumulative savings over time
For Specific Situations
Mortgage
the usual case. The rate has to fall by enough to cover the costs — and the break-even line says by when.
Car or consumer loan
the term is short, so closing costs weigh far more here than on a mortgage.
Merging several loans
add up what you owe and put it in as one balance; the new payment replaces all of them.
Stretching the term
the payment falls and the interest grows. Both numbers are on screen — decide with them, not with one of them.
How does refinancing work?
Refinancing is the replacement of a current loan with a new one with more favorable terms (usually a lower rate). The calculator compares both options and shows the financial result.
The key metric is the break-even point: how many months will it take for the monthly savings to cover the cost of refinancing. If you plan to stay in your home longer than that, refinancing is beneficial.
The calculator takes into account all costs: real estate appraisal, applying for a new loan, insurance and other fees. This gives a realistic picture of the benefits.
Confidentiality
Calculations are performed in the browser. Financial data does not leave the device.
Tips and best practices
- Refinance when you plan to stay past the break-even point — the rate cut alone does not decide it
- Restarting a 30-year term after years of payments can cost more in total even at a lower rate — compare total interest, not just the payment
- Compare the total interest paid over the remaining life of both loans, not just monthly payments
- Shop several lenders: rates and closing costs differ, and the calculator shows what each offer means in money
- Consider a no-closing-cost refinance if you may sell before the break-even point — a slightly higher rate instead of costs up front
- Time your refinance when your credit score is highest and debt-to-income ratio is lowest for the best rates
Formulas and Algorithms
B = P · (1 + i)k − M · ((1 + i)k − 1) / i What is left after k payments: P — the original amount, i — the monthly rate, M — the payment.
M = P · i / (1 − (1 + i)−n) The same payment every month, for the old loan and the new one alike.
I = Σ Bj · i, j = k … n Summed month by month from the real schedule, not from payment × months: the last payment is almost always smaller.
T = C / (Mold − Mnew) How many months the closing costs C take to pay for themselves out of the monthly saving.
Typical use cases
Lower rate
check whether a lower rate still pays off once closing costs are counted
Term change
Switch from 30-year to 15-year to pay off faster and save on total interest
Cash-out refinance
Access home equity for renovations, debt consolidation, or investments
ARM to fixed
Switch from an adjustable rate to a fixed rate for payment stability
Financial planning
assessing total savings over the entire period
Debt consolidation
Roll high-interest debt into a lower mortgage rate
Frequently Asked Questions
Q: When is it profitable to refinance?
A: When the monthly saving covers the refinancing costs before you plan to sell or repay the loan. Enter both loans and the costs: the calculator shows the break-even month and the difference in total interest.
Q: What are the costs of refinancing?
A: Typical items: property valuation, insurance, the bank’s fee, notary and registration fees. Ask the new lender for the full list with amounts and enter the sum as closing costs.
Q: Is it possible to refinance early?
A: Yes, in most cases you can refinance at any time. However, check to see if there are any penalties for early repayment of your current loan.
Similar tools
Try the Mortgage Calculator for the full monthly cost with tax and insurance — it also takes extra payments — and the Loan Calculator for personal loans.