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Refinance savings calculator

Enter your current loan and the new offer to see monthly savings and the break-even point on closing costs.

Inputs

Results update live as you type.

Monthly savings
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Enter values to calculate.

New payment
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Break-even
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Formulas: payment = P x r / (1 - (1+r)^-n). Break-even months = closing costs / monthly savings.
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The break-even rule

Refinancing only pays if you keep the loan past the break-even point: closing costs divided by monthly savings. $4,000 in costs saving $150 a month breaks even in 27 months; selling or refinancing again before that loses money.

Watch the term trap

A lower rate with a restarted 30-year term can cost more total interest than keeping a higher rate with fewer years left. Compare total interest over the remaining life, not just the monthly payment.

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Refinance Savings FAQs

How do you calculate refinance savings?
Compute the monthly payment for the current loan and the new offer with the amortization formula, then subtract. Multiply the monthly saving by your expected months remaining for lifetime savings.
What is the break-even point?
Closing costs divided by monthly savings. It is the number of months before the refinance starts saving you money net of costs.
When is refinancing worth it?
Usually when the new rate is at least 0.75 to 1 point lower, break-even is well within your stay horizon, and you are not extending the term dramatically.
Do closing costs always apply?
Most refis charge 2 to 5% of the loan in fees, though no-closing-cost offers exist at a higher rate. Enter 0 here if your offer truly has no costs.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
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