Enter your current loan and a potential new rate to see your new payment, how much you'd save, and how long it takes to break even on closing costs.
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How the Refinance Calculator works
Refinancing replaces your current loan with a new one — usually to get a lower interest rate, a
different term, or both. This calculator compares your current loan's remaining payment and interest
against a new loan on the same balance, then subtracts the closing costs you'd pay to refinance.
The most useful number is often the break-even point: how many months of savings it
takes to recover what you spent on closing costs. If you plan to keep the loan longer than that, the
refinance is generally worth it.
Keep in mind that resetting your term matters as much as the rate. A lower rate on a fresh long term
can lower your monthly payment while still increasing the total interest you pay over the life of the
loan, especially if you've already paid down several years of your current loan.
Frequently asked questions
Not always. Refinancing usually makes sense when the new rate is meaningfully lower than your current rate, when you plan to keep the loan long enough to pass the break-even point, and when the closing costs don't outweigh the savings. If you're planning to sell or pay off the loan soon, the upfront costs may never be recovered.
Closing costs vary by loan type and lender, but commonly include origination fees, appraisal fees, title insurance, and recording fees. For a mortgage refinance, expect roughly 2%–5% of the loan amount; other loan types may have flat fees. Ask your lender for a full breakdown before you commit.
Yes. If you refinance into a new 25- or 30-year term after already paying down your original loan for several years, you may lower your monthly payment but end up paying more total interest over time, even at a lower rate. Matching your new term closer to your remaining term (or shorter) usually saves more in the long run.
A shorter break-even period is generally better. If you'll recoup your closing costs in 2–3 years and plan to keep the loan longer than that, refinancing is usually a solid move. If the break-even point stretches past the time you expect to keep the loan, refinancing may not pay off.