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Finance Calculator

Refinance Calculator

Compare your current loan against a refinance offer to estimate monthly savings, lifetime cost, and break-even timing.

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Formula

Refinance comparison logic

Break-even Months = Closing Costs ÷ Monthly Savings
  • Monthly savings compares your old required payment with the refinanced payment.
  • Closing costs matter because they delay the point where savings turn positive.
  • A lower rate is valuable only if you stay in the home long enough to recover those costs.

Example scenarios

Use it like a decision tool

Classic rate-drop refinance

$320,000 balance · 6.8% current · 5.9% new rate

Useful for spotting whether the payment drop is large enough to justify the fees.

Shorter-term refinance

Refinance to a shorter term with a lower rate

Monthly payment may stay high, but lifetime interest can shrink dramatically.

FAQ

Common questions

What is a good refinance break-even point?

There is no universal rule, but shorter break-even periods are generally safer if your housing plans are uncertain.

Should I refinance just for a lower monthly payment?

Not always. A longer term can lower the payment while increasing the total cost you pay over time.

Do closing costs always make refinancing worse?

No. They simply need to be compared against the monthly and lifetime savings to see whether the refinance still pays off.