Refinance Calculator
Compare your existing loan with a new refinancing loan to find your monthly savings, total interest saved, and breakeven timeline.
Input Parameters
Calculated Output
New Payment: $1867.43 vs Old: $2182.96
1.2 Years
Breakeven Months = Total Closing Costs / (Current Monthly Payment - New Monthly Payment).
Adjust the input values above to see results update instantly. All computations are performed client-side — your data never leaves your device.To use the Refinance Calculator, enter your primary baseline figures in the input fields above. The calculation engine immediately models compare your existing loan with a new refinancing loan to find your monthly savings, total interest saved, and breakeven timeline across standard amortization and compounding intervals, updating your net payments, interest charges, and projected figures with 64-bit precision.
Everything You Need to Know About Refinance Calculator
Detailed breakdown of calculation methodology, user instructions, and expert answers.
What is the Refinance Calculator?
The Refinance Calculator analyzes whether replacing your existing mortgage with a new loan will save you money. It calculates your monthly payment reduction, lifetime interest savings, and the exact breakeven period required to recoup closing costs.
How to Use This Calculator
- 1Enter your current mortgage balance, current interest rate, and remaining loan term.
- 2Input the proposed new loan's interest rate, new term length, and estimated closing costs.
- 3Analyze the monthly payment difference and total cumulative interest savings.
- 4Identify your breakeven month to ensure you plan to stay in the home long enough to benefit.
The Math Behind It
Breakeven Period (in Months) = Total Refinance Closing Costs / (Current Monthly Payment - New Monthly Payment). Total Savings = (Remaining Old Payments) - (New Payments + Closing Costs).
Frequently Asked Questions
Q:What is a 'no-closing-cost' refinance?
In a no-closing-cost refinance, the lender covers closing fees in exchange for a slightly higher interest rate or rolls the closing costs directly into your principal balance.
Q:How long is a typical breakeven period on a mortgage refinance?
A healthy breakeven point is typically between 12 and 36 months. If you plan to sell the property before reaching the breakeven date, refinancing may cost you more than it saves.
Q:Can I refinance from an adjustable-rate mortgage (ARM) to a fixed rate?
Yes. Refinancing an ARM to a fixed-rate mortgage locks in predictable monthly payments and protects you against future rate spikes.
Q:What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a larger loan balance, allowing you to withdraw the difference in cash for home improvements, debt consolidation, or investing.