Refinance Calculator
Compare your current loan with a refinance option to estimate payment changes, interest savings, and break-even time.
Current loan
New loan
Informational estimate only. Actual refinance terms depend on fees, points, escrow, and lender structure.
How it works
This calculator compares principal & interest (P&I) payments for your current loan versus a refinance option. Both scenarios use standard monthly amortization.
Monthly payment formula:
M = P × (r(1+r)n) ÷ ((1+r)n − 1)
Break-even months = closing costs ÷ monthly savings. If monthly savings are negative, refinance may not produce immediate payment savings.
Examples
When to use this tool
This tool is designed for quick, practical tasks such as everyday calculations, data formatting, or simple conversions. It is best used when you need fast results without installing software or using complex tools.
When to use
- Quick checks or one-time calculations
- Validating or converting data before using it elsewhere
- Simple tasks that do not require advanced software
When not to use
- Critical financial, legal, or medical decisions
- Large-scale or automated processing
- Situations requiring guaranteed precision beyond basic validation
Always review results before using them in important contexts.
About this tool
This tool helps you perform quick utility operations directly in your browser. It runs entirely in your browser without sending data to a server.
You can use this tool when handling simple tasks without installing additional software. The results should be interpreted as a processed output based on your input data.
FAQ
- What is refinance break-even?
Break-even is the number of months required for monthly payment savings to recover refinance closing costs.
- Does this include taxes and insurance?
No. This calculator compares principal and interest only. Taxes and insurance are typically unaffected by rate changes.
- What about discount points?
Treat discount points as part of closing costs for a simplified break-even estimate.
- Should I refinance if monthly payment increases?
Not necessarily. Some refinances shorten the term and reduce total interest even if the monthly payment increases.
- Why can lender results differ?
Lenders may include fees, escrow adjustments, daily interest calculations, rounding rules, and other contractual terms.