Refinance Calculator
Compare your current loan with a refinance option to estimate payment changes, interest savings, and break-even time.
Refinance Calculator tool
Current loan
New loan
Informational estimate only. Actual refinance terms depend on fees, points, escrow, and lender structure.
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.
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.