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Loan Refinance Calculator
Decide whether refinancing is worth it. Enter your current loan, the new rate and term, and the closing costs, then press Calculate to see your monthly savings, break-even point and lifetime difference.
Written by TopicDrill Editorial Team·Updated June 2026
Cumulative cost over time
Refinance Keep current
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How the loan refinance calculator works
The tool builds two amortization schedules from the same outstanding balance. The first keeps your current rate and the years you have left. The second uses the new rate and new term you are considering. It works out the monthly payment for each, then adds up every payment over the life of both loans so you can compare not just the monthly figure but the full cost.
The chart plots cumulative spending. The refinance line starts above zero because you have already paid closing costs, while the current-loan line starts at zero. Where the orange refinance line dips below the grey current line is your break-even point, marked with a vertical guide.
A worked example
Suppose you owe 220,000 dollars at 7.2 percent with 25 years remaining, and a lender offers 5.8 percent over a fresh 25 years with 4,500 dollars in closing costs. The lower rate trims the monthly payment by a few hundred dollars, you recover the closing costs within a couple of years, and you save a large sum in interest over the life of the loan, provided you keep the loan well past break-even.
Things to keep in mind
Match the terms when you can so a lower rate is not hidden by a longer payoff, and weigh how long you plan to keep the loan against the break-even point. For a checklist of refinance questions to ask a lender, see the CFPB. To then model paying the new loan off faster, head to our loan payoff calculator.
Frequently asked questions
What is the break-even point on a refinance?
It is the moment when the money you save from the lower payment finally catches up with the closing costs you paid up front. Before that point you are still in the hole; after it every month is a net gain. If you expect to keep the loan past the break-even point, refinancing tends to pay off.
Why does the calculator add closing costs to the refinance path?
Refinancing is not free. Application fees, appraisal, title and lender charges are real money spent on day one. The tool starts the refinance cost curve at the closing-cost figure so the comparison is honest, then shows how long the lower payments take to win that money back.
Can a lower rate still cost me more overall?
Yes, if you stretch the term. Dropping the rate but resetting a loan with a few years left back to a fresh long term can lower the monthly payment while raising total interest, because you pay for many more years. The lifetime savings figure flags this by comparing total cost, not just the monthly amount.
Does this work for mortgages, auto loans and personal loans?
Yes. The math is the same amortization for any fixed-rate installment loan. Enter the remaining balance, your current rate and years left, then the new rate, term and closing costs. Just make sure the closing-cost figure reflects the fees for that specific loan type.
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