Loan Refinance Calculator
Compare your current loan with a new one to see the monthly saving, break-even month and lifetime cost difference.
Quick answer
Refinancing replaces a loan with a new one. Break-even month = closing costs / monthly saving, and the lifetime test compares remaining interest on the current loan with interest on the new loan plus costs.
Loan Refinance Calculator
Current loan
New loan
Extra amount borrowed on top of the current balance.
Current Monthly Payment
—
New Monthly Payment
—
Monthly Saving
—
Break-Even
—
Interest Remaining (current)
—
Interest (new loan)
—
Lifetime Cost Difference
—
Keep vs Refinance
| Item | Keep current loan | Refinance |
|---|
Assumptions & method
- Payment on each loan = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r = annual rate ÷ 12 and n = months. At 0% it is P ÷ n.
- New loan amount = current balance + cash-out. Closing costs are paid upfront and are not added to the loan.
- Monthly saving = current payment − new payment. Break-even month = closing costs ÷ monthly saving, rounded up.
- Lifetime cost = total interest + closing costs. Difference = current loan interest − (new loan interest + closing costs). Positive means refinancing costs less over the full terms.
- The comparison is undiscounted and ignores tax effects, rate changes and what you would do with the monthly saving. Cash-out interest is counted as a cost of the new loan. Estimates only, not advice.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How refinancing is judged
Refinancing replaces your current loan with a new one, usually to lower the rate or the payment. The benefit is the monthly saving; the price is the one-time closing cost. Dividing cost by saving gives the break-even month, the point after which you are ahead. A second test is lifetime cost: the interest you would still pay on the current loan against the interest on the new loan plus costs. If the new term is longer, the monthly saving can hide a higher total. This calculator shows both views side by side.