Refinance Calculator

Weigh a refinance honestly: the new payment, what it saves each month, how long closing costs take to recover, and the lifetime result.

Quick answer: Compare your current loan to a refinance: new monthly payment, monthly saving, breakeven months on closing costs and lifetime saving or loss.

How to use

  1. Enter your current balance, rate and the years left on it.
  2. Add the new rate and term you have been offered.
  3. Set the expected closing costs as a percentage of the balance.
  4. Compare the new payment, monthly saving and breakeven months.
  5. Check lifetime saving last; a positive monthly line can hide a negative total.

About this tool

Refinancing trades one amortization for another, and an honest comparison needs four numbers, not one. This calculator prices your remaining loan at the current rate and term, prices the proposed loan at the new rate and term, then reports the new monthly payment, the monthly difference, how many months closing costs take to recover, and the lifetime result after costs. On the defaults, moving 320,000 dollars from 7.25 percent with 25 years left to 6.10 percent over 30 years saves about 374 dollars a month, recovers closing costs in roughly 17 months, yet ends about 10,600 dollars negative in lifetime terms because the term restarts. Read all four outputs before deciding. Outputs compare principal and interest only from the inputs entered; real refinance pricing, fees and escrow needs vary by lender. Verify with official sources. Not financial advice.Rate-and-term refinances replace the balance without pulling cash out, while cash-out versions raise the balance and usually price slightly higher. Credit score bands steer pricing: borrowers in the top tiers see the sharpest rates, and each lower band adds cost (approximate; pricing grids are lender-specific). Escrow, appraisal and title charges vary. Verify every assumption with your lender.

FAQ

Why is the lifetime saving negative when the monthly saving is positive?
Because restarting a 30-year term adds 60 fresh payments. On the defaults the payment falls about 374 dollars a month, yet paying for 360 months instead of the 300 you had left means roughly 10,600 dollars more spent overall once closing costs are added. Shortening the new term instead flips the lifetime number positive.
What does the breakeven figure mean?
It divides your closing costs by the monthly saving, showing how many months of lower payments it takes to earn the costs back, about 17 months on the defaults. If you might sell or move before then, the refinance loses money even though the monthly line looks attractive.
What is the difference between rate-and-term and cash-out?
A rate-and-term refinance replaces your existing balance, aiming at a lower rate or shorter payoff, while a cash-out refinance borrows more than you owe and hands you the difference. Cash-out raises the balance and usually carries a slightly higher rate. This calculator handles either; just enter the resulting balance, rate and term.
How much does credit score change the outcome?
Pricing grids adjust rates by score band, with the sharpest pricing for top-tier scores and surcharges below roughly 640 (approximate; every lender's grid differs). Before refinancing, pull your reports and fix errors, because even a small rate improvement compounds across hundreds of payments.
Are escrow, taxes and insurance part of the comparison?
No. Both the current and new figures are principal and interest only. Your escrow continues either way and may need funding at closing for the new lender, but it does not affect the amortization math shown. Compare the loan on its own terms, then overlay your tax and insurance bills.
When does refinancing clearly make sense?
Three conditions line up: the new rate is meaningfully lower, you will stay in the home past the breakeven month, and the new term does not quietly extend your payoff so far that lifetime interest balloons. Meeting two of the three can still be reasonable, but all three is the comfortable zone.
What does it cost to refinance?
Typical closing packages run roughly 2 to 5 percent of the balance across origination, appraisal, title and recording fees (approximate). Some lenders advertise no-cost versions that trade a higher rate for waived fees. Enter whichever structure you are comparing as the closing percentage to keep the breakeven honest.

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