Methodology
The calculator compares current loan terms versus proposed refinance terms, then estimates monthly payment change, break-even months, and net savings after refinance costs.
Refinance Calculator
Calculate potential savings from refinancing your loan
Current Loan
Refinance Terms
Results
Current Monthly Payment
$1,610.75
New Monthly Payment
$1,319.59
Monthly Savings
+$291.16
Total Savings (Net)
+$84,348.42
Break-Even Point
10 months
Refinance Tips
Check break-even months to ensure you'll stay in the home long enough to benefit
Quick Facts
Typical refinance closing costs range from $2,000 to $5,000 depending on location
Note
Savings assume you'll hold the loan through the full new term completion
How this refinance calculator works
The calculator compares your current loan payment to a proposed refinance payment, then estimates total net savings after refinance costs over the new term.
- Monthly savings = current monthly payment minus new monthly payment
- Total net savings factors in refinance closing costs
- Break-even months estimate when savings recover upfront costs
Last updated: February 2026
Refinance calculator FAQ
What is break-even point?
Break-even is the number of months it takes for monthly savings to offset refinance costs.
Can refinancing increase total cost?
Yes. If you reset into a much longer term or pay high costs, total lifetime interest can still rise.
What rate drop is worth refinancing?
There is no single rule; compare monthly savings, break-even timing, and how long you plan to keep the loan.
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Assumptions
- Both loans are treated as fixed-rate amortizing loans unless otherwise specified.
- Closing costs are paid upfront or rolled in according to entered assumptions.
- The home is kept long enough to realize estimated savings.
Worked example
Example: reducing APR from 7.1% to 6.2% with $4,000 in refinance costs may lower monthly payment by around $180. Break-even is roughly 23 months if savings remain stable.
Edge cases and limitations
- Resetting to a longer term can lower payment but increase lifetime interest.
- Rate lock periods, escrow changes, and lender fees vary by loan program.
- Cash-out refinance scenarios can change risk profile beyond payment math.
When this calculator is not appropriate
Use licensed lender disclosures and amortization schedules for final decisions, especially when fees, points, or adjustable-rate terms are involved.