Thinking about refinancing your mortgage or loan? Our Refinance Calculator helps you estimate your new monthly payment, monthly savings, up?front costs, and the break?even point so you can decide with confidence.
Why use a Refinance Calculator?
Refinancing replaces your current loan with a new one—often at a lower interest rate or different term. While a lower rate can reduce your monthly payment, there are also costs to consider, such as lender fees, appraisal, title, and optional discount points. A good calculator reveals both the short?term cash flow impact and the long?term cost picture so you can make an informed decision.
What this tool estimates
- New monthly payment based on your selected interest rate and term
- Monthly savings compared with your current payment
- Cash due at closing versus rolled?in costs
- Break?even timing—how many months of savings it may take to recover costs
- Estimated remaining interest on your current loan vs. interest on the new loan
- Optional time?horizon analysis (e.g., if you plan to move or refinance again)
How to use the Refinance Calculator
- Enter your current loan balance, current APR, and the remaining term in years.
- Enter your potential new APR and the new term in years.
- Add estimated closing costs and any discount points (optional).
- Choose whether to finance those costs into the new loan or pay them at closing.
- Include any prepayment penalty for your current loan, if applicable.
- Optionally, enter how many months you expect to keep the new loan to see a horizon analysis.
Understanding your results
Monthly payment and savings
The calculator compares your current payment with the new payment. A lower APR or a longer term can reduce your payment. Keep in mind that extending your term may increase total interest paid over the life of the loan even if the monthly payment drops.
Closing costs, points, and financing options
Closing costs cover services like underwriting, appraisal, title, and recording. Discount points are optional prepaid interest you can buy to reduce the rate; one point equals 1% of the loan amount. You may be able to roll costs and points into the new loan amount to minimize out?of?pocket expense, though doing so can increase total interest because you are financing those costs over time.
Break?even timing
The break?even estimate shows how many months it could take for your monthly savings to recover the costs of refinancing. If you plan to sell or refinance again before the break?even point, the refinance may not pay off. If your monthly savings are negative, the refinance likely does not make sense unless you have another goal (like shortening the term).
Time horizon and equity impact
If you enter a time horizon (for example, 60 months), the calculator estimates net savings by comparing total payments and expected remaining balances after that period. This helps you account for both cash flow and equity differences—useful if you expect to move or refinance within a few years.
Tips for smarter refinancing
- Shop multiple lenders to compare rates, fees, and points on the same day.
- Ask for a zero?point option and a point?buydown option to see trade?offs.
- Consider your timeline—shorter timelines favor lower costs over lower rates.
- Watch for prepayment penalties on your current loan.
- Ensure your credit, income, and home value documentation are ready to secure the best pricing.
Use the Refinance Calculator as a planning guide, then confirm figures with your lender. Exact costs and rates depend on your credit profile, loan type, property, and market conditions.