Loan Refinance Calculator
Compare Your Current Loan With a Refinance
Enter your remaining balance, current interest rate, new rate, loan terms, and estimated refinancing costs. The calculator estimates monthly payment changes, total interest, total loan cost, and the payment break-even period.
Refinance Details
Use the remaining balance—not the original amount you borrowed—for an existing loan.
Estimated Refinance Results
These estimates assume a fully amortizing, fixed-rate loan and upfront refinancing costs.
Current Loan vs. Refinance
| Metric | Current Loan | Refinanced Loan | Change |
|---|---|---|---|
| Monthly Payment | $0.00 | $0.00 | $0.00 |
| Total Interest | $0.00 | $0.00 | $0.00 |
| Total Loan Cost | $0.00 | $0.00 | $0.00 |
| Loan Term | 25 years | 25 years | 0 years |
How to Use a Refinance Calculator
1. Enter your current loan details
Use the current principal balance, current annual interest rate, and the number of years remaining. The calculator treats that balance as the amount that would be refinanced.
2. Enter the new loan terms
Enter the interest rate and repayment term you are considering. A shorter new term can increase the monthly payment while reducing the total interest paid.
3. Add estimated refinance costs
Include lender fees, points, appraisal costs, title or settlement charges, and other costs you expect to pay when refinancing. The calculator assumes these costs are paid separately at closing.
4. Review both monthly and total cost
Compare the monthly payment, total interest, total loan cost, and payment break-even period together. A refinance comparison is more useful when you look beyond the monthly payment alone.
What to Consider Before Refinancing
- Interest rate: A lower rate can reduce interest costs, but the available rate depends on the borrower, loan type, market conditions, and other factors.
- New loan term: Resetting the term can change both the monthly payment and the total interest paid.
- Closing costs: Fees reduce the savings produced by a lower rate and are important when calculating a payment break-even period.
- How long you expect to keep the loan: Compare the estimated break-even period with your expected time in the loan.
- Loan features: Check whether the new loan changes the rate structure, prepayment rules, escrow requirements, or other terms.
Refinancing Calculator FAQs
What is the break-even point when refinancing?
The payment break-even point is the estimated number of months needed for monthly payment savings to recover the upfront refinancing costs. It measures fee recovery through payment savings; it is not a guarantee that the refinance will reduce total borrowing costs.
Should I use my original loan amount or remaining balance?
Use your current remaining principal balance. A refinance generally replaces the existing balance with a new loan, so the remaining balance is the starting amount for this comparison.
Can refinancing lower my monthly payment but cost more overall?
Yes. A longer repayment period can reduce the monthly payment while increasing total interest. That is why this calculator shows both monthly payment changes and estimated total loan cost.
What does a 0% interest rate do in the calculator?
At 0% interest, the estimated principal-and-interest payment is the balance divided by the number of monthly payments. No interest is added to the loan.
Does this calculator include taxes, insurance, or escrow?
No. The calculation focuses on principal, interest, and the refinancing costs you enter. Property taxes, homeowners insurance, and escrow changes should be evaluated separately when they apply.
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Estimates are for educational purposes and are not a loan offer, rate quote, or financial recommendation. Actual payments, interest, closing costs, and loan terms can vary by lender and borrower. This calculator assumes a fully amortizing fixed-rate loan, uses the balance you enter as the refinance amount, and treats the entered refinancing costs as upfront costs.