Refinance Calculator

Compare the current loan with a new rate and term. Divide closing fees by monthly savings. Estimates only.

Smart Tips

• Both payments are principal and interest. Taxes and insurance are left out so the comparison is the loan itself.

• Break-even months are closing fees divided by the monthly payment cut.

• If the new payment is not lower, there is no break-even from the payment.

• You type both rates. Nothing here is today’s refinance rate.

The Formula

Break-even months = closing fees ÷ monthly savings

Savings= Old payment − new payment
Using the scheduled payment

Fees= Closing fees you enter
Cash cost of the refinance

New principal= Balance, or balance + fees
Only if you roll the fees in

Payment= Standard amortization
Rate and term you type

Monthly savings uses the scheduled principal-and-interest payment of each loan. Interest difference is the current loan’s total interest minus the new loan’s total interest over the terms you enter, so a longer new term can cost more interest even when the payment drops.

Key Insights

Two loans, not one quote

The current balance keeps its remaining term. The new loan starts a new term at the rate you type.

Fees in cash or in the loan

Rolling fees raises the new principal. The break-even divisor is still the fee amount.

A longer term can add interest

A lower payment over more years can increase total interest. The interest difference shows that.

No live rate

Compare the rate you were offered with the rate you have now.

Frequently Asked Questions

The current payment, the new payment, the monthly difference, and how many months of that difference it takes to cover the closing fees you enter.

Closing fees divided by monthly savings. Monthly savings is the current scheduled payment minus the new scheduled payment. If the new payment is not lower, there is no break-even from the payment cut.

The new principal becomes the current balance plus those fees, so the new payment is higher than it would be without the fees. Break-even still divides the fee amount by the monthly savings.

No. You type the current rate and the new rate. The page does not fetch a rate quote.

No. Both payments are principal and interest only, so the comparison stays on the note. Add taxes and insurance yourself if you want a full housing payment.

Each payment uses the standard amortization formula: payment = principal × r(1+r)^n / ((1+r)^n − 1). Monthly savings is the current payment minus the new payment. Break-even months are closing fees divided by that savings. No rate feed or lender table is used. Source: CFPB refinance guidance: https://www.consumerfinance.gov/ask-cfpb/should-i-refinance-my-mortgage-en-128/.

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Monthly savings

Enter values to calculate

Current payment

New payment

Break-even

Interest difference

Note:Both rates are inputs. Break-even ignores taxes, insurance, and any change in those bills. It is an estimate, not a Loan Estimate.