Loan refinance comparison

Refinance Calculator

Compare your current loan with a refinance offer and estimate payment change, closing cost recovery time, total interest difference, and whether the new terms may fit your plan.

Current New loan

$0/mo

Estimated monthly payment change

Inputs

Current Loan and Refinance Offer

Use principal-and-interest amounts for the cleanest comparison. Taxes, insurance, and escrow can change separately from the refinance.

Current loan

Remaining balance Current interest rate (%) Current monthly payment Estimated months remaining Prepayment penalty Expected months keeping new loan

New loan

New loan term (years) New interest rate (%) Discount points (%) Other closing costs Cash out amount How costs are paid

Refinance check $0

Your refinance result will appear here.

Current payment $0

New payment $0

Break-even time N/A

Cash needed at closing $0

Side-by-side cost snapshot

Remaining current payments $0

New loan payments and upfront cost $0

						Estimated lifetime difference
						$0
					

Current payment

New payment

Formula used

New payment uses the fixed-rate loan payment formula. Break-even = refinance costs / monthly savings.

Method

How This Refinance Calculator Works

The calculator compares the remaining cost of your current loan with the cost of a proposed new loan. It uses the fixed-rate payment formula for the new loan and your entered current payment for the current loan comparison.

New payment: based on the new loan balance, interest rate, and term.
Refinance cost: discount points, closing costs, and any prepayment penalty.
Break-even: refinance cost divided by monthly payment savings.
Lifetime difference: current remaining payments minus new payments and upfront costs.

Data and source notes: No live lender rate, credit score, appraisal, escrow, tax, or underwriting data is used. The CFPB Loan Estimate explainer shows borrowers should review loan amount, monthly principal and interest, estimated total monthly payment, closing costs, prepayment penalties, balloon payments, and mortgage insurance before accepting a loan offer. This calculator is a planning estimate, not a lender disclosure.

Review the CFPB Loan Estimate explainer.

Decision context

Why a Lower Payment Is Not Always Enough

A refinance can lower the monthly payment because the rate is lower, because the term is longer, or because costs are moved into the new loan. These are very different outcomes. A lower payment with a longer term can improve cash flow but increase total interest.

That is why the result should be read in two layers: first, whether the monthly payment improves; second, whether the fee recovery and long-term cost make sense for how long you expect to keep the loan.

Source quality

Data Sources and Quality Notes

This refinance calculator does not use live lender rates, credit score data, property valuation data, escrow changes, or underwriting rules. It compares the current loan and proposed refinance from the numbers entered on the page.

Verify against lender documents

Use the result as a planning estimate, then compare it with your lender's Loan Estimate, itemized closing costs, escrow details, and final refinance disclosure.

Break-even is only one test

A short break-even period can be helpful, but total interest, cash-out amount, term reset, and how long you expect to keep the loan may matter more.

Costs can move, not disappear

Rolling costs into the new balance may reduce cash due at closing, but those costs are still financed and can increase long-term interest.

Examples

Common Refinance Scenarios

Refinancing can solve different problems. The right calculation depends on which problem you are trying to solve.

Rate-and-term refinance

The borrower keeps the balance roughly the same but replaces the old rate or term. This is usually evaluated by monthly savings, break-even time, and total interest difference.

Cash-out refinance

The new balance is higher because the borrower receives cash. The payment comparison should be read carefully because part of the new loan is additional borrowing, not pure refinancing savings.

Shorter-term refinance

A shorter term may raise the monthly payment but reduce long-term interest. In this case, a negative monthly savings number can still be acceptable if faster payoff is the goal.

Costs

Refinance Costs That Change the Answer

Closing costs are not just a detail. Application fees, origination charges, appraisal fees, title work, recording fees, points, and prepayment penalties can delay or erase the benefit of a lower rate.

Rolling costs into the loan can make the refinance feel free at closing, but the balance becomes larger. That can increase interest and make the lifetime comparison less attractive.

Check before applying

Closing costs and lender credits
Discount points and rate trade-off
Prepayment penalty on old loan
Cash-out amount or cash-in amount
How long you expect to keep the loan
Whether escrow items are changing separately

Related tools

Related Calculators

Use these tools to check the parts of the refinance decision that may need separate modeling.

FAQ

Refinance Calculator FAQ

What is a good refinance break-even period?

There is no universal number. A short break-even period is usually easier to justify. If you may sell, move, or refinance again before break-even, the refinance may not recover its costs.

Should I include taxes and insurance in the payment?

For comparing the loan itself, use principal and interest. Taxes, insurance, and escrow can change for reasons unrelated to the refinance, so including them may blur the loan comparison.

How do points affect refinancing?

Points are an upfront cost paid to lower the rate. They can be useful when the lower rate saves enough over time to recover the added cost.

Can refinancing increase total interest?

Yes. Extending the loan term can reduce the monthly payment while increasing total interest, especially if the borrower resets a long payoff schedule.

Does this calculator approve a refinance?

No. Approval depends on lender underwriting, credit score, income, debt-to-income ratio, equity, property type, documentation, and loan program rules.

Should closing costs be rolled into the new loan?

Rolling costs into the loan can reduce cash needed at closing, but it increases the loan balance and can increase total interest paid over time.

Is cash-out refinancing free money?

No. Cash-out refinancing turns equity into a larger loan balance. The cash received is repaid with interest through the new loan.

Does this calculator use live refinance rates?

No. It uses the rate, balance, term, fees, points, cash-out amount, and cost-treatment assumptions entered by the user. Compare the result with lender Loan Estimates before making a refinance decision.

Disclaimer

This calculator is for general informational purposes and simple arithmetic checks. It is not a loan offer, refinance approval, financial advice, legal advice, or tax advice. Verify fees, APR, escrow effects, loan terms, and tax consequences with qualified professionals before refinancing.