finance calculator

Refinance Calculator

Use this refinance calculator to see whether refinancing your mortgage or auto loan is worth it. Enter your current loan and the new offer to get your monthly savings, break-even point, and total savings.

Monthly savings = current payment − new payment, and break-even months = closing costs ÷ monthly savings. Refinancing $300,000 from 7.0% to 6.0% over 30 years cuts the payment from $1,995.91 to $1,798.65, saving $197.26 a month, so $6,000 of closing costs breaks even in 30.4 months and the total net saving is $65,012. Restarting a 30-year term on a loan already years in can raise lifetime interest even when the payment falls.

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Current Loan Details

Original loan amount ($)$

Current interest rate (%)%

Original term (years)years

Months already paidmonths

New Refinance Loan Details

New interest rate (%)%

New term (years)years

Estimated closing costs ($)$

Roll closing costs into new loan principal

Closing Cost Break-Even Recovery Calendar

Month	Projected Date	Cumulative Savings / Balance	Status
Month 0	Immediate	-$6,000	Upfront Costs Paid
Month 1	Nov 2026	-$5,803	Recovering Costs
Month 6	Apr 2027	-$4,816	Recovering Costs
Month 12	Oct 2027	-$3,633	Recovering Costs
Month 18	Apr 2028	-$2,449	Recovering Costs
Month 24	Oct 2028	-$1,266	Recovering Costs
Month 31	May 2029	+$115	Net Savings Gain
Month 36	Oct 2029	+$1,101	Net Savings Gain
Month 48	Oct 2030	+$3,468	Net Savings Gain
Month 60	Oct 2031	+$5,835	Net Savings Gain

Results

Current monthly payment$1,996

New monthly payment$1,799

Monthly payment change

Saves $197/mo

Estimated remaining balance$300,000

Refinance Impact

New loan principal$300,000

Break-even timeline30.4 months

Total net savings

$65,012

Tip

Refinance rates change daily. Save this page to check your savings and break-even point whenever a lender sends you a new offer.

Summary

Key output metrics

Current payment (P&I)

$1,996

Old loan payment.

New payment (P&I)

$1,799

Refinanced payment.

Monthly savings

$197

Decrease in payment.

Total net savings

$65,012

Including closing costs.

Comparison

Monthly payment comparison

Compare the principal and interest payment of your current loan with the estimated new loan.

Monthly payment comparison
Item	Value
Current Payment	1,996
New Payment	1,799

Comparison

Total cost of borrowing

Compare the remaining cost to pay off your old loan versus the new loan including closing costs.

Total cost of borrowing
Item	Value
Old Loan (Remaining)	718,527
New Loan + Fees	653,515

Full amortization schedule

Principal, interest, and balance timeline

Monthly view shows the full exact schedule. Quarterly and yearly views summarize the same monthly schedule. Weekly view is a weekly equivalent split for quick planning.

360 monthly payments360 rows shown

Swipe sideways to view all columns.

Scroll within the table to see every row, or switch to Yearly above for a shorter one-row-per-year summary.

Period	Payment	Principal	Interest	Balance
Month 1	$1,799	$299	$1,500	$299,701
Month 2	$1,799	$300	$1,499	$299,401
Month 3	$1,799	$302	$1,497	$299,100
Month 4	$1,799	$303	$1,495	$298,796
Month 5	$1,799	$305	$1,494	$298,492
Month 6	$1,799	$306	$1,492	$298,186
Month 7	$1,799	$308	$1,491	$297,878
Month 8	$1,799	$309	$1,489	$297,569
Month 9	$1,799	$311	$1,488	$297,258
Month 10	$1,799	$312	$1,486	$296,945
Month 11	$1,799	$314	$1,485	$296,631
Month 12	$1,799	$315	$1,483	$296,316
Month 13	$1,799	$317	$1,482	$295,999
Month 14	$1,799	$319	$1,480	$295,680
Month 15	$1,799	$320	$1,478	$295,360
Month 16	$1,799	$322	$1,477	$295,038
Month 17	$1,799	$323	$1,475	$294,715
Month 18	$1,799	$325	$1,474	$294,390
Month 19	$1,799	$327	$1,472	$294,063
Month 20	$1,799	$328	$1,470	$293,735
Month 21	$1,799	$330	$1,469	$293,405
Month 22	$1,799	$332	$1,467	$293,073
Month 23	$1,799	$333	$1,465	$292,740
Month 24	$1,799	$335	$1,464	$292,405
Month 25	$1,799	$337	$1,462	$292,068
Month 26	$1,799	$338	$1,460	$291,730
Month 27	$1,799	$340	$1,459	$291,390
Month 28	$1,799	$342	$1,457	$291,048
Month 29	$1,799	$343	$1,455	$290,705
Month 30	$1,799	$345	$1,454	$290,360
Month 31	$1,799	$347	$1,452	$290,013
Month 32	$1,799	$349	$1,450	$289,664
Month 33	$1,799	$350	$1,448	$289,314
Month 34	$1,799	$352	$1,447	$288,962
Month 35	$1,799	$354	$1,445	$288,608
Month 36	$1,799	$356	$1,443	$288,252
Month 37	$1,799	$357	$1,441	$287,895
Month 38	$1,799	$359	$1,439	$287,536
Month 39	$1,799	$361	$1,438	$287,175
Month 40	$1,799	$363	$1,436	$286,812
Month 41	$1,799	$365	$1,434	$286,447
Month 42	$1,799	$366	$1,432	$286,081
Month 43	$1,799	$368	$1,430	$285,713
Month 44	$1,799	$370	$1,429	$285,343
Month 45	$1,799	$372	$1,427	$284,971
Month 46	$1,799	$374	$1,425	$284,597
Month 47	$1,799	$376	$1,423	$284,221
Month 48	$1,799	$378	$1,421	$283,844
Month 49	$1,799	$379	$1,419	$283,464
Month 50	$1,799	$381	$1,417	$283,083
Month 51	$1,799	$383	$1,415	$282,700
Month 52	$1,799	$385	$1,413	$282,314
Month 53	$1,799	$387	$1,412	$281,927
Month 54	$1,799	$389	$1,410	$281,538
Month 55	$1,799	$391	$1,408	$281,147
Month 56	$1,799	$393	$1,406	$280,754
Month 57	$1,799	$395	$1,404	$280,360
Month 58	$1,799	$397	$1,402	$279,963
Month 59	$1,799	$399	$1,400	$279,564
Month 60	$1,799	$401	$1,398	$279,163
Month 61	$1,799	$403	$1,396	$278,760
Month 62	$1,799	$405	$1,394	$278,355
Month 63	$1,799	$407	$1,392	$277,949
Month 64	$1,799	$409	$1,390	$277,540
Month 65	$1,799	$411	$1,388	$277,129
Month 66	$1,799	$413	$1,386	$276,716
Month 67	$1,799	$415	$1,384	$276,301
Month 68	$1,799	$417	$1,382	$275,883
Month 69	$1,799	$419	$1,379	$275,464
Month 70	$1,799	$421	$1,377	$275,043
Month 71	$1,799	$423	$1,375	$274,619
Month 72	$1,799	$426	$1,373	$274,194
Month 73	$1,799	$428	$1,371	$273,766
Month 74	$1,799	$430	$1,369	$273,336
Month 75	$1,799	$432	$1,367	$272,904
Month 76	$1,799	$434	$1,365	$272,470
Month 77	$1,799	$436	$1,362	$272,034
Month 78	$1,799	$438	$1,360	$271,595
Month 79	$1,799	$441	$1,358	$271,155
Month 80	$1,799	$443	$1,356	$270,712
Month 81	$1,799	$445	$1,354	$270,267
Month 82	$1,799	$447	$1,351	$269,820
Month 83	$1,799	$450	$1,349	$269,370
Month 84	$1,799	$452	$1,347	$268,918
Month 85	$1,799	$454	$1,345	$268,464
Month 86	$1,799	$456	$1,342	$268,008
Month 87	$1,799	$459	$1,340	$267,549
Month 88	$1,799	$461	$1,338	$267,088
Month 89	$1,799	$463	$1,335	$266,625
Month 90	$1,799	$466	$1,333	$266,160
Month 91	$1,799	$468	$1,331	$265,692
Month 92	$1,799	$470	$1,328	$265,221
Month 93	$1,799	$473	$1,326	$264,749
Month 94	$1,799	$475	$1,324	$264,274
Month 95	$1,799	$477	$1,321	$263,797
Month 96	$1,799	$480	$1,319	$263,317
Month 97	$1,799	$482	$1,317	$262,835
Month 98	$1,799	$484	$1,314	$262,351
Month 99	$1,799	$487	$1,312	$261,864
Month 100	$1,799	$489	$1,309	$261,374
Month 101	$1,799	$492	$1,307	$260,883
Month 102	$1,799	$494	$1,304	$260,388
Month 103	$1,799	$497	$1,302	$259,892
Month 104	$1,799	$499	$1,299	$259,392
Month 105	$1,799	$502	$1,297	$258,891
Month 106	$1,799	$504	$1,294	$258,386
Month 107	$1,799	$507	$1,292	$257,880
Month 108	$1,799	$509	$1,289	$257,371
Month 109	$1,799	$512	$1,287	$256,859
Month 110	$1,799	$514	$1,284	$256,344
Month 111	$1,799	$517	$1,282	$255,827
Month 112	$1,799	$520	$1,279	$255,308
Month 113	$1,799	$522	$1,277	$254,786
Month 114	$1,799	$525	$1,274	$254,261
Month 115	$1,799	$527	$1,271	$253,734
Month 116	$1,799	$530	$1,269	$253,204
Month 117	$1,799	$533	$1,266	$252,671
Month 118	$1,799	$535	$1,263	$252,136
Month 119	$1,799	$538	$1,261	$251,598
Month 120	$1,799	$541	$1,258	$251,057
Month 121	$1,799	$543	$1,255	$250,514
Month 122	$1,799	$546	$1,253	$249,968
Month 123	$1,799	$549	$1,250	$249,419
Month 124	$1,799	$552	$1,247	$248,867
Month 125	$1,799	$554	$1,244	$248,313
Month 126	$1,799	$557	$1,242	$247,756
Month 127	$1,799	$560	$1,239	$247,196
Month 128	$1,799	$563	$1,236	$246,633
Month 129	$1,799	$565	$1,233	$246,068
Month 130	$1,799	$568	$1,230	$245,500
Month 131	$1,799	$571	$1,227	$244,928
Month 132	$1,799	$574	$1,225	$244,354
Month 133	$1,799	$577	$1,222	$243,778
Month 134	$1,799	$580	$1,219	$243,198
Month 135	$1,799	$583	$1,216	$242,615
Month 136	$1,799	$586	$1,213	$242,030
Month 137	$1,799	$589	$1,210	$241,441
Month 138	$1,799	$591	$1,207	$240,850
Month 139	$1,799	$594	$1,204	$240,255
Month 140	$1,799	$597	$1,201	$239,658
Month 141	$1,799	$600	$1,198	$239,057
Month 142	$1,799	$603	$1,195	$238,454
Month 143	$1,799	$606	$1,192	$237,848
Month 144	$1,799	$609	$1,189	$237,238
Month 145	$1,799	$612	$1,186	$236,626
Month 146	$1,799	$616	$1,183	$236,010
Month 147	$1,799	$619	$1,180	$235,392
Month 148	$1,799	$622	$1,177	$234,770
Month 149	$1,799	$625	$1,174	$234,145
Month 150	$1,799	$628	$1,171	$233,517
Month 151	$1,799	$631	$1,168	$232,886
Month 152	$1,799	$634	$1,164	$232,252
Month 153	$1,799	$637	$1,161	$231,615
Month 154	$1,799	$641	$1,158	$230,974
Month 155	$1,799	$644	$1,155	$230,330
Month 156	$1,799	$647	$1,152	$229,683
Month 157	$1,799	$650	$1,148	$229,033
Month 158	$1,799	$653	$1,145	$228,380
Month 159	$1,799	$657	$1,142	$227,723
Month 160	$1,799	$660	$1,139	$227,063
Month 161	$1,799	$663	$1,135	$226,399
Month 162	$1,799	$667	$1,132	$225,733
Month 163	$1,799	$670	$1,129	$225,063
Month 164	$1,799	$673	$1,125	$224,389
Month 165	$1,799	$677	$1,122	$223,713
Month 166	$1,799	$680	$1,119	$223,033
Month 167	$1,799	$683	$1,115	$222,349
Month 168	$1,799	$687	$1,112	$221,662
Month 169	$1,799	$690	$1,108	$220,972
Month 170	$1,799	$694	$1,105	$220,278
Month 171	$1,799	$697	$1,101	$219,581
Month 172	$1,799	$701	$1,098	$218,880
Month 173	$1,799	$704	$1,094	$218,176
Month 174	$1,799	$708	$1,091	$217,468
Month 175	$1,799	$711	$1,087	$216,757
Month 176	$1,799	$715	$1,084	$216,042
Month 177	$1,799	$718	$1,080	$215,323
Month 178	$1,799	$722	$1,077	$214,601
Month 179	$1,799	$726	$1,073	$213,876
Month 180	$1,799	$729	$1,069	$213,147
Month 181	$1,799	$733	$1,066	$212,414
Month 182	$1,799	$737	$1,062	$211,677
Month 183	$1,799	$740	$1,058	$210,937
Month 184	$1,799	$744	$1,055	$210,193
Month 185	$1,799	$748	$1,051	$209,445
Month 186	$1,799	$751	$1,047	$208,694
Month 187	$1,799	$755	$1,043	$207,938
Month 188	$1,799	$759	$1,040	$207,180
Month 189	$1,799	$763	$1,036	$206,417
Month 190	$1,799	$767	$1,032	$205,650
Month 191	$1,799	$770	$1,028	$204,880
Month 192	$1,799	$774	$1,024	$204,106
Month 193	$1,799	$778	$1,021	$203,327
Month 194	$1,799	$782	$1,017	$202,545
Month 195	$1,799	$786	$1,013	$201,760
Month 196	$1,799	$790	$1,009	$200,970
Month 197	$1,799	$794	$1,005	$200,176
Month 198	$1,799	$798	$1,001	$199,378
Month 199	$1,799	$802	$997	$198,576
Month 200	$1,799	$806	$993	$197,771
Month 201	$1,799	$810	$989	$196,961
Month 202	$1,799	$814	$985	$196,147
Month 203	$1,799	$818	$981	$195,329
Month 204	$1,799	$822	$977	$194,507
Month 205	$1,799	$826	$973	$193,681
Month 206	$1,799	$830	$968	$192,851
Month 207	$1,799	$834	$964	$192,016
Month 208	$1,799	$839	$960	$191,178
Month 209	$1,799	$843	$956	$190,335
Month 210	$1,799	$847	$952	$189,488
Month 211	$1,799	$851	$947	$188,637
Month 212	$1,799	$855	$943	$187,781
Month 213	$1,799	$860	$939	$186,921
Month 214	$1,799	$864	$935	$186,057
Month 215	$1,799	$868	$930	$185,189
Month 216	$1,799	$873	$926	$184,316
Month 217	$1,799	$877	$922	$183,439
Month 218	$1,799	$881	$917	$182,558
Month 219	$1,799	$886	$913	$181,672
Month 220	$1,799	$890	$908	$180,782
Month 221	$1,799	$895	$904	$179,887
Month 222	$1,799	$899	$899	$178,988
Month 223	$1,799	$904	$895	$178,084
Month 224	$1,799	$908	$890	$177,176
Month 225	$1,799	$913	$886	$176,263
Month 226	$1,799	$917	$881	$175,346
Month 227	$1,799	$922	$877	$174,424
Month 228	$1,799	$927	$872	$173,497
Month 229	$1,799	$931	$867	$172,566
Month 230	$1,799	$936	$863	$171,630
Month 231	$1,799	$941	$858	$170,690
Month 232	$1,799	$945	$853	$169,745
Month 233	$1,799	$950	$849	$168,795
Month 234	$1,799	$955	$844	$167,840
Month 235	$1,799	$959	$839	$166,880
Month 236	$1,799	$964	$834	$165,916
Month 237	$1,799	$969	$830	$164,947
Month 238	$1,799	$974	$825	$163,973
Month 239	$1,799	$979	$820	$162,994
Month 240	$1,799	$984	$815	$162,011
Month 241	$1,799	$989	$810	$161,022
Month 242	$1,799	$994	$805	$160,029
Month 243	$1,799	$999	$800	$159,030
Month 244	$1,799	$1,004	$795	$158,027
Month 245	$1,799	$1,009	$790	$157,018
Month 246	$1,799	$1,014	$785	$156,005
Month 247	$1,799	$1,019	$780	$154,986
Month 248	$1,799	$1,024	$775	$153,962
Month 249	$1,799	$1,029	$770	$152,933
Month 250	$1,799	$1,034	$765	$151,899
Month 251	$1,799	$1,039	$759	$150,860
Month 252	$1,799	$1,044	$754	$149,816
Month 253	$1,799	$1,050	$749	$148,766
Month 254	$1,799	$1,055	$744	$147,711
Month 255	$1,799	$1,060	$739	$146,651
Month 256	$1,799	$1,065	$733	$145,586
Month 257	$1,799	$1,071	$728	$144,515
Month 258	$1,799	$1,076	$723	$143,439
Month 259	$1,799	$1,081	$717	$142,358
Month 260	$1,799	$1,087	$712	$141,271
Month 261	$1,799	$1,092	$706	$140,179
Month 262	$1,799	$1,098	$701	$139,081
Month 263	$1,799	$1,103	$695	$137,978
Month 264	$1,799	$1,109	$690	$136,869
Month 265	$1,799	$1,114	$684	$135,754
Month 266	$1,799	$1,120	$679	$134,635
Month 267	$1,799	$1,125	$673	$133,509
Month 268	$1,799	$1,131	$668	$132,378
Month 269	$1,799	$1,137	$662	$131,241
Month 270	$1,799	$1,142	$656	$130,099
Month 271	$1,799	$1,148	$650	$128,951
Month 272	$1,799	$1,154	$645	$127,797
Month 273	$1,799	$1,160	$639	$126,637
Month 274	$1,799	$1,165	$633	$125,472
Month 275	$1,799	$1,171	$627	$124,300
Month 276	$1,799	$1,177	$622	$123,123
Month 277	$1,799	$1,183	$616	$121,940
Month 278	$1,799	$1,189	$610	$120,751
Month 279	$1,799	$1,195	$604	$119,556
Month 280	$1,799	$1,201	$598	$118,355
Month 281	$1,799	$1,207	$592	$117,149
Month 282	$1,799	$1,213	$586	$115,936
Month 283	$1,799	$1,219	$580	$114,717
Month 284	$1,799	$1,225	$574	$113,492
Month 285	$1,799	$1,231	$567	$112,260
Month 286	$1,799	$1,237	$561	$111,023
Month 287	$1,799	$1,244	$555	$109,780
Month 288	$1,799	$1,250	$549	$108,530
Month 289	$1,799	$1,256	$543	$107,274
Month 290	$1,799	$1,262	$536	$106,011
Month 291	$1,799	$1,269	$530	$104,743
Month 292	$1,799	$1,275	$524	$103,468
Month 293	$1,799	$1,281	$517	$102,187
Month 294	$1,799	$1,288	$511	$100,899
Month 295	$1,799	$1,294	$504	$99,605
Month 296	$1,799	$1,301	$498	$98,304
Month 297	$1,799	$1,307	$492	$96,997
Month 298	$1,799	$1,314	$485	$95,683
Month 299	$1,799	$1,320	$478	$94,363
Month 300	$1,799	$1,327	$472	$93,036
Month 301	$1,799	$1,333	$465	$91,703
Month 302	$1,799	$1,340	$459	$90,363
Month 303	$1,799	$1,347	$452	$89,016
Month 304	$1,799	$1,354	$445	$87,662
Month 305	$1,799	$1,360	$438	$86,302
Month 306	$1,799	$1,367	$432	$84,935
Month 307	$1,799	$1,374	$425	$83,561
Month 308	$1,799	$1,381	$418	$82,180
Month 309	$1,799	$1,388	$411	$80,792
Month 310	$1,799	$1,395	$404	$79,397
Month 311	$1,799	$1,402	$397	$77,996
Month 312	$1,799	$1,409	$390	$76,587
Month 313	$1,799	$1,416	$383	$75,171
Month 314	$1,799	$1,423	$376	$73,749
Month 315	$1,799	$1,430	$369	$72,319
Month 316	$1,799	$1,437	$362	$70,882
Month 317	$1,799	$1,444	$354	$69,437
Month 318	$1,799	$1,451	$347	$67,986
Month 319	$1,799	$1,459	$340	$66,527
Month 320	$1,799	$1,466	$333	$65,061
Month 321	$1,799	$1,473	$325	$63,588
Month 322	$1,799	$1,481	$318	$62,107
Month 323	$1,799	$1,488	$311	$60,619
Month 324	$1,799	$1,496	$303	$59,124
Month 325	$1,799	$1,503	$296	$57,620
Month 326	$1,799	$1,511	$288	$56,110
Month 327	$1,799	$1,518	$281	$54,592
Month 328	$1,799	$1,526	$273	$53,066
Month 329	$1,799	$1,533	$265	$51,533
Month 330	$1,799	$1,541	$258	$49,992
Month 331	$1,799	$1,549	$250	$48,443
Month 332	$1,799	$1,556	$242	$46,887
Month 333	$1,799	$1,564	$234	$45,322
Month 334	$1,799	$1,572	$227	$43,750
Month 335	$1,799	$1,580	$219	$42,171
Month 336	$1,799	$1,588	$211	$40,583
Month 337	$1,799	$1,596	$203	$38,987
Month 338	$1,799	$1,604	$195	$37,383
Month 339	$1,799	$1,612	$187	$35,772
Month 340	$1,799	$1,620	$179	$34,152
Month 341	$1,799	$1,628	$171	$32,524
Month 342	$1,799	$1,636	$163	$30,888
Month 343	$1,799	$1,644	$154	$29,244
Month 344	$1,799	$1,652	$146	$27,591
Month 345	$1,799	$1,661	$138	$25,930
Month 346	$1,799	$1,669	$130	$24,261
Month 347	$1,799	$1,677	$121	$22,584
Month 348	$1,799	$1,686	$113	$20,898
Month 349	$1,799	$1,694	$104	$19,204
Month 350	$1,799	$1,703	$96	$17,502
Month 351	$1,799	$1,711	$88	$15,790
Month 352	$1,799	$1,720	$79	$14,071
Month 353	$1,799	$1,728	$70	$12,342
Month 354	$1,799	$1,737	$62	$10,606
Month 355	$1,799	$1,746	$53	$8,860
Month 356	$1,799	$1,754	$44	$7,106
Month 357	$1,799	$1,763	$36	$5,342
Month 358	$1,799	$1,772	$27	$3,571
Month 359	$1,799	$1,781	$18	$1,790
Month 360	$1,799	$1,790	$9	$0

Guide

How to understand and use this calculator

What Is Refinancing? Quick Answer

Refinancing means replacing your existing loan with a new one, usually to get a lower interest rate, a lower monthly payment or a different loan term.

How to calculate refinance savings:

Monthly savings = current payment − new payment
Break-even point = closing costs ÷ monthly savings

Simple example: your current payment is $1,500 a month and the new payment is $1,300, so you save $200 a month. Closing costs are $4,000, so you break even after $4,000 ÷ $200 = 20 months.

Current Payment	New Payment	Monthly Savings	Closing Costs	Break-Even
$1,500	$1,300	$200	$4,000	20 months
$2,000	$1,700	$300	$5,000	17 months
$1,200	$1,000	$200	$3,000	15 months
$1,800	$1,500	$300	$6,000	20 months

Key insight: refinancing is worth it if you plan to keep the home, or the car, past the break-even point.

How to Use the Refinance Calculator

To use the refinance calculator:

Enter your original loan amount, current interest rate and original term.
Enter the number of months you have already paid. The calculator works out your current payment and remaining balance from these.
Enter the new interest rate and new term.
Enter the closing costs, and tick the box if you will roll them into the new loan instead of paying them upfront.
Read your current and new payment, monthly savings, break-even point and total net savings. The results update as you type.

Tip: if you only know your current balance and how long is left, enter the balance as the original amount, the time left as the original term, and 0 months paid.

Example 1, a mortgage refinance: $300,000 left to pay at 7.0% over 30 years, refinanced to 6.0% for 30 years with $6,000 of closing costs paid upfront.

Input	Value
Original loan amount	$300,000
Current rate	7.0%
Original term	30 years
Months already paid	0
New rate	6.0%
New term	30 years
Closing costs	$6,000
Output	Result
Current monthly payment	$1,996
New monthly payment	$1,799
Monthly savings	$197
Break-even point	30.4 months
5-year savings	$5,835
Interest saved over the loan	$71,012
Total net savings, after closing costs	$65,012

Example 2, an auto refinance: $25,000 at 8.0% with 5 years left, refinanced to 5.0% over 4 years with a $200 fee.

Input	Value
Original loan amount	$25,000
Current rate	8.0%
Original term	5 years
Months already paid	0
New rate	5.0%
New term	4 years
Closing costs	$200
Output	Result
Current monthly payment	$507
New monthly payment	$576
Monthly savings	−$69 (the payment goes up)
Break-even point	None
Interest saved	$2,779 ($5,415 − $2,635)
Total net savings, after the fee	$2,579

Note: here the monthly payment is higher, but the shorter term and lower rate cut total interest. Always look at both the monthly payment and the total cost.

What Is Refinancing?

Refinancing is the process of replacing your existing loan with a new one. The new loan pays off the old loan, and from then on you make payments on the new loan.

Why people refinance:

Reason	Benefit
Lower interest rate	Reduces monthly payments and total interest
Lower monthly payment	Improves cash flow
Shorter loan term	Pays the loan off faster, with less total interest
Longer loan term	Reduces the monthly payment
Remove PMI	Saves the premium once you have 20% or more equity
Cash-out	Gives you access to home equity for other needs
Change rate type	Moves you from an adjustable rate to a fixed rate

What you need to refinance:

Recent pay stubs
W-2s or tax returns
Bank statements
Current loan details: balance, rate and term
Property details, for a mortgage

How Does a Refinance Calculator Work?

A refinance calculator compares your current loan with a possible new loan.

What it calculates:

Your remaining balance
The new monthly payment
Monthly savings
The break-even point
Total interest and total net savings

The process:

It works out your current payment and the balance still owed from the original loan, rate, term and months paid.
It works out the new payment on that balance at the new rate and term, adding the closing costs to the balance if you roll them in.
It subtracts the new payment from the current one to get monthly savings.
It divides the closing costs by the monthly savings to get the break-even point.
It compares all the payments left on the current loan with all the payments on the new loan plus upfront costs to get total net savings.

What Is the Break-Even Point?

The break-even point is the number of months it takes for your monthly savings to cover the cost of refinancing.

Break-even point (months) = closing costs ÷ monthly savings

Example: closing costs of $6,000 and monthly savings of $197.26.

Break-even = $6,000 ÷ $197.26 = 30.4 months

What it means:

If you keep the loan for more than about 30 months, you save money.
If you sell or refinance again before then, you lose money on the refinance.

How to Calculate Refinance Savings, Step by Step

These steps follow Example 1: $300,000 at 7.0%, refinanced to 6.0% for 30 years with $6,000 of closing costs.

Step 1: Work out your current monthly payment, with the mortgage formula or from your statement. $300,000 at 7.0% for 30 years = $1,995.91.
Step 2: Work out your new monthly payment with the same formula at the new rate and term. $300,000 at 6.0% for 30 years = $1,798.65.
Step 3: Monthly savings = current payment − new payment. $1,995.91 − $1,798.65 = $197.26.
Step 4: Break-even = closing costs ÷ monthly savings. $6,000 ÷ $197.26 = 30.4 months.
Step 5: Savings over a period = monthly savings × months − closing costs. Over 5 years: $197.26 × 60 − $6,000 = $5,835.

Answer: you save about $197 a month and break even in about 30 months. Over the full 30 years, the saving is $197.26 × 360 − $6,000 = $65,012.

How to Calculate the Break-Even Point: Worked Examples

Break-even point (months) = closing costs ÷ monthly savings

Example	Closing Costs	Monthly Savings	Break-Even
Mortgage 1	$4,000	$200	$4,000 ÷ $200 = 20 months
Mortgage 2	$7,500	$250	$7,500 ÷ $250 = 30 months
Auto refinance	$200	$50	$200 ÷ $50 = 4 months

Important: if you plan to sell the home or trade in the car before the break-even point, refinancing may not be worth it.

When Is Refinancing Worth It?

Refinancing is usually worth it if:

Condition	Why It Matters
You will keep the loan past break-even	You get back the closing costs
You get a lower rate	Your payments and interest fall
You can remove PMI	You stop paying the premium
You need cash	A cash-out refinance provides funds
You want a shorter term	You pay the loan off faster
Your credit has improved	You qualify for a better rate

When it is usually not worth it:

Condition	Why It Is Not Worth It
You will sell soon	You will not get back the closing costs
The rate cut is small	The savings do not cover the costs
Closing costs are high	The break-even point is far away
You are near the end of your term	Most of each payment is already principal

Watch the term, too. Refinancing a loan with 25 years left into a new 30-year loan lowers the payment partly by adding five years of payments, which can raise the total interest you pay.

Refinance Home Loan Rates: What to Expect

Refinance home loan rates depend on several factors:

Factor	Effect on Your Rate
Credit score	Higher score = lower rate
Loan-to-value (LTV)	Lower LTV = lower rate
Loan term	Shorter term = lower rate
Loan type	Conventional, FHA, VA and USDA loans are priced differently
Market conditions	Rates move with the economy and bond markets

Recent national averages from Freddie Mac's Primary Mortgage Market Survey:

Loan Type	Average Rate, Week of September 24, 2026	A Year Earlier
30-year fixed	7.03%	6.30%
15-year fixed	6.42%	5.49%

These averages come from home purchase applications. A refinance quote can be a little different, and adjustable-rate, FHA and VA loans are priced separately.

Note: rates change daily. Get current quotes from several lenders before you refinance.

Auto Loan Refinance: How It Works

An auto loan refinance works much like a mortgage refinance, but for your car.

When to refinance your auto loan:

Your credit score has improved
Interest rates have dropped
You want a lower monthly payment
You want to pay the loan off faster

What you need:

Current loan information
Vehicle information
Proof of income
Proof of insurance

Average car loan rates by credit score, from Experian's State of the Automotive Finance Market for the second quarter of 2026:

Credit Score (VantageScore 4.0)	New Car Loan	Used Car Loan
781 to 850 (super prime)	4.41%	6.29%
661 to 780 (prime)	6.15%	8.81%
601 to 660 (near prime)	9.71%	13.93%
501 to 600 (subprime)	13.52%	19.10%
300 to 500 (deep subprime)	16.11%	21.62%

These are averages on car loans. Refinance offers follow the same pattern: a better credit score gets a lower rate.

Car Loan Refinance Rates: What to Expect

Car loan refinance rates vary by lender as well as by credit score.

Lender Type	What to Expect
Banks	Competitive rates, especially for existing customers with good credit
Credit unions	Often among the lowest rates, but you must become a member
Online lenders	Quick comparisons and approvals, with a wide range of rates
Dealerships	Convenient, but usually not the cheapest option for a refinance

How to get the best auto refinance rate:

Check your credit score
Shop around at several lenders
Get pre-approved
Compare rates, terms and fees
Include a credit union

Refinancing an Auto Loan, Step by Step

Step 1: Check your credit score.
Step 2: Gather your loan and vehicle information.
Step 3: Shop around for rates.
Step 4: Get pre-approved.
Step 5: Choose the best offer, checking the total cost as well as the payment.
Step 6: Complete the refinance. The new lender pays off the old loan.
Step 7: Make your payments to the new lender.

What you will need:

Item	Why You Need It
Driver's license	ID verification
Proof of income	Shows you can repay
Vehicle registration	Vehicle details
Current loan statement	The payoff amount
Proof of insurance	Confirms coverage

Mortgage Refinance vs. Auto Refinance

Feature	Mortgage Refinance	Auto Refinance
Loan amount	Usually $100,000 or more	Usually $5,000 to $50,000
Closing costs	About 2% to 6% of the loan	Often $0 to $500
Break-even	Often 18 to 36 months	Often 2 to 6 months
Term	15 to 30 years	2 to 7 years
Tax deduction	Interest may be deductible if you itemize	Only for some new US-assembled cars bought from 2025, for tax years 2025 to 2028
Mortgage insurance	PMI or MIP may apply	None

On the tax point: the IRS allows up to $10,000 a year of interest on a qualifying new-car loan taken out after 2024 to be deducted. A refinance of that loan can keep the deduction for the balance refinanced. Loans for used cars, or taken out before 2025, do not qualify.

Practice Problems

Problem 1: a homeowner refinances with $5,000 of closing costs and $250 of monthly savings. What is the break-even point?

Solution: break-even = $5,000 ÷ $250 = 20 months.

Problem 2: a homeowner saves $150 a month and breaks even in 24 months. What were the closing costs?

Solution: closing costs = $150 × 24 = $3,600.

Problem 3: a car owner refinances with $200 of closing costs and $40 of monthly savings. What is the break-even point?

Solution: break-even = $200 ÷ $40 = 5 months.

Problem 4: a homeowner refinances a $400,000 loan from 7.5% to 6.0%, both over 30 years. What is the monthly saving?

Solution: current payment at 7.5% = $2,796.86. New payment at 6.0% = $2,398.20. Monthly savings = $398.66, about $399.

Problem 5: a homeowner paid $7,000 of closing costs and saves $200 a month. How many months to break even?

Solution: break-even = $7,000 ÷ $200 = 35 months.

Problem	Answer
1	20 months
2	$3,600
3	5 months
4	$399
5	35 months

Common Refinance Mistakes

Mistake	What Goes Wrong	Fix
Not calculating the break-even point	You refinance without knowing when you start saving	Work out the break-even point first
Ignoring closing costs	You look only at the monthly saving	Count every closing cost and fee
Refinancing too often	You pay closing costs each time rates dip	Make sure the savings exceed the costs
Stretching the term too far	A lower payment but years of extra interest	Compare total interest, not just the payment
Not shopping around	You take the first offer	Compare at least three lenders
Forgetting about PMI	You keep paying PMI you could remove	Check whether you have 20% or more equity
Not checking your credit score	You apply without knowing your rate tier	Check your credit before you apply
Refinancing again before break-even	You never get back the first set of costs	Stay past break-even before refinancing again

What This Calculator Can and Cannot Do

This calculator can help with:

Calculating refinance savings
Finding the break-even point
Comparing your current loan with a new one
Estimating total interest and net savings
Mortgage and auto loan refinances
Comparing paying closing costs upfront with rolling them into the loan

This calculator cannot:

Guarantee refinance approval
Replace a lender's official Loan Estimate
Model a cash-out refinance, or taxes and insurance held in escrow
Account for every fee
Provide tax advice
Predict future interest rates

Related Calculators

Calculator	When to Use It
Mortgage calculator	For the full mortgage payment with tax and insurance
Auto loan calculator	For car loan payments
Home affordability calculator	For your home buying budget
Refinance break-even calculator	For a quick break-even check from a payment and costs
Loan-to-value calculator	For checking whether you have 20% equity to drop PMI
Break-even calculator	For general break-even analysis
Percentage calculator	For percentage calculations

Summary: The Key Refinance Formulas

A refinance calculator helps any homeowner or car owner decide whether refinancing is worth it. Knowing your monthly savings and break-even point lets you make the decision on numbers, not on the headline rate.

Monthly savings: current payment − new payment
Break-even point: closing costs ÷ monthly savings
Total savings: (monthly savings × months) − closing costs

Quick reference:

Current Payment	New Payment	Monthly Savings	Closing Costs	Break-Even
$1,500	$1,300	$200	$4,000	20 months
$2,000	$1,700	$300	$5,000	17 months
$1,200	$1,000	$200	$3,000	15 months
$1,800	$1,500	$300	$6,000	20 months

Enter your own loans in the calculator above to see your result. It is free and needs no sign-up.

Related concepts

Break-Even Point

The number of months it takes for monthly savings to cover the cost of refinancing.

Closing Costs

The lender, appraisal, title and other fees paid to take out the new loan.

Loan-to-Value (LTV)

Your loan balance divided by the property's value, which affects your rate and whether PMI applies.

Amortization

How each payment is split between interest and principal over the life of a loan.

Frequently Asked Questions

What is a refinance calculator?+

A refinance calculator shows whether refinancing a loan is worth it by working out the new payment, your monthly savings, the break-even point and the total savings after closing costs.

How does a refinance calculator work?+

It compares your current loan with a new loan: the difference in monthly payments, the time it takes to get back the closing costs, and the total cost of each loan.

What is the break-even point?+

The number of months it takes for your monthly savings to cover the cost of refinancing. Break-even = closing costs ÷ monthly savings, so $6,000 of costs and $197 a month of savings break even in about 30 months.

How do I calculate refinance savings?+

Subtract your new monthly payment from your current monthly payment to get the monthly saving. For total savings, multiply the monthly saving by the months you will keep the loan and subtract the closing costs.

When is refinancing worth it?+

Refinancing is worth it if you will keep the home, or the car, past the break-even point, and the new loan does not cost more in total interest than the one you have.

What are typical refinance closing costs?+

Mortgage refinance closing costs are commonly about 2% to 6% of the loan amount. Auto refinances often cost little or nothing beyond a small title or lender fee.

What are refinance home loan rates right now?+

Freddie Mac's national average for the week of September 24, 2026 was 7.03% for a 30-year fixed loan and 6.42% for a 15-year fixed loan. Your rate depends on your credit score, loan-to-value, loan type and the lender.

What are auto refinance rates?+

They vary by lender and credit score. Experian's second-quarter 2026 averages ran from 4.41% on new-car loans for the best credit scores to over 21% on used-car loans for the lowest.

How do I refinance my auto loan?+

Check your credit, gather your loan and vehicle documents, compare rates from several lenders, get pre-approved, choose the best offer, and let the new lender pay off the old loan.

Can I refinance an auto loan with bad credit?+

Yes, but the rate will be higher. Credit unions and online lenders are worth checking, and improving your score first can lower the rate you are offered.

How often can I refinance?+

There is no legal limit, although some lenders ask for a waiting period after your last loan. Refinancing too often means paying closing costs again and again, so make sure each refinance passes its break-even point.

Formula

Refinance Savings Formula

Net Savings = (Current Payment × Remaining Months) - (New Payment × Refinance Term Months) - Upfront Fees

Net refinance savings are calculated by comparing the remaining payments left on the existing loan against the total payments of the new loan plus any upfront closing costs (unless rolled into the loan principal, which decreases savings through higher interest).

Step by step

How the calculation works

1Find your current mortgage payment, original interest rate, and original term.
2Specify the number of months already paid on the existing mortgage.
3Calculate the remaining principal balance using the amortizing remaining balance formula.
4Enter the interest rate and term for the proposed new mortgage.
5Determine closing costs and choose if you want to roll them into the new mortgage.
6Calculate the new payment and subtract it from the old payment to find monthly cash flow change.
7Compare the total cost of the new loan plus fees to the remaining payments of the old loan to compute net savings.
8Divide the closing costs by the monthly savings to find your break-even period in months.

Example

Example Refinance Scenario

A $300,000 balance at 7.0% with 30 years left costs $1,996 a month. Refinancing to 6.0% for 30 years cuts the payment to $1,799, saving $197 a month. With $6,000 of closing costs paid upfront, the break-even point is $6,000 / $197.26 = 30.4 months, and the total net savings over the loan are $65,012.

Related guides

Learn more about this calculation

Guide

Mortgage Amortization Schedule: Formula and Guide

Learn how mortgage payments split between principal and interest, read an amortization schedule, and test loan terms with DTC calculators.

Guide

Home Affordability: Budget, Formula, and Calculator

Estimate a home-price range from income, debt, down payment, rate, taxes, and insurance, then test costs the DTC model does not include.

finance calculator

Refinance Calculator

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Current Loan Details

Original loan amount ($)$

Current interest rate (%)%

Original term (years)years

Months already paidmonths

New Refinance Loan Details

New interest rate (%)%

New term (years)years

Estimated closing costs ($)$

Roll closing costs into new loan principal

Closing Cost Break-Even Recovery Calendar

Month	Projected Date	Cumulative Savings / Balance	Status
Month 0	Immediate	-$6,000	Upfront Costs Paid
Month 1	Nov 2026	-$5,803	Recovering Costs
Month 6	Apr 2027	-$4,816	Recovering Costs
Month 12	Oct 2027	-$3,633	Recovering Costs
Month 18	Apr 2028	-$2,449	Recovering Costs
Month 24	Oct 2028	-$1,266	Recovering Costs
Month 31	May 2029	+$115	Net Savings Gain
Month 36	Oct 2029	+$1,101	Net Savings Gain
Month 48	Oct 2030	+$3,468	Net Savings Gain
Month 60	Oct 2031	+$5,835	Net Savings Gain

Results

Current monthly payment$1,996

New monthly payment$1,799

Monthly payment change

Saves $197/mo

Estimated remaining balance$300,000

Refinance Impact

New loan principal$300,000

Break-even timeline30.4 months

Total net savings

$65,012

Tip

Refinance rates change daily. Save this page to check your savings and break-even point whenever a lender sends you a new offer.

Summary

Key output metrics

Current payment (P&I)

$1,996

Old loan payment.

New payment (P&I)

$1,799

Refinanced payment.

Monthly savings

$197

Decrease in payment.

Total net savings

$65,012

Including closing costs.

Comparison

Monthly payment comparison

Compare the principal and interest payment of your current loan with the estimated new loan.

Monthly payment comparison
Item	Value
Current Payment	1,996
New Payment	1,799

Comparison

Total cost of borrowing

Compare the remaining cost to pay off your old loan versus the new loan including closing costs.

Total cost of borrowing
Item	Value
Old Loan (Remaining)	718,527
New Loan + Fees	653,515

Full amortization schedule

Principal, interest, and balance timeline

Monthly view shows the full exact schedule. Quarterly and yearly views summarize the same monthly schedule. Weekly view is a weekly equivalent split for quick planning.

360 monthly payments360 rows shown

Swipe sideways to view all columns.

Scroll within the table to see every row, or switch to Yearly above for a shorter one-row-per-year summary.

Period	Payment	Principal	Interest	Balance
Month 1	$1,799	$299	$1,500	$299,701
Month 2	$1,799	$300	$1,499	$299,401
Month 3	$1,799	$302	$1,497	$299,100
Month 4	$1,799	$303	$1,495	$298,796
Month 5	$1,799	$305	$1,494	$298,492
Month 6	$1,799	$306	$1,492	$298,186
Month 7	$1,799	$308	$1,491	$297,878
Month 8	$1,799	$309	$1,489	$297,569
Month 9	$1,799	$311	$1,488	$297,258
Month 10	$1,799	$312	$1,486	$296,945
Month 11	$1,799	$314	$1,485	$296,631
Month 12	$1,799	$315	$1,483	$296,316
Month 13	$1,799	$317	$1,482	$295,999
Month 14	$1,799	$319	$1,480	$295,680
Month 15	$1,799	$320	$1,478	$295,360
Month 16	$1,799	$322	$1,477	$295,038
Month 17	$1,799	$323	$1,475	$294,715
Month 18	$1,799	$325	$1,474	$294,390
Month 19	$1,799	$327	$1,472	$294,063
Month 20	$1,799	$328	$1,470	$293,735
Month 21	$1,799	$330	$1,469	$293,405
Month 22	$1,799	$332	$1,467	$293,073
Month 23	$1,799	$333	$1,465	$292,740
Month 24	$1,799	$335	$1,464	$292,405
Month 25	$1,799	$337	$1,462	$292,068
Month 26	$1,799	$338	$1,460	$291,730
Month 27	$1,799	$340	$1,459	$291,390
Month 28	$1,799	$342	$1,457	$291,048
Month 29	$1,799	$343	$1,455	$290,705
Month 30	$1,799	$345	$1,454	$290,360
Month 31	$1,799	$347	$1,452	$290,013
Month 32	$1,799	$349	$1,450	$289,664
Month 33	$1,799	$350	$1,448	$289,314
Month 34	$1,799	$352	$1,447	$288,962
Month 35	$1,799	$354	$1,445	$288,608
Month 36	$1,799	$356	$1,443	$288,252
Month 37	$1,799	$357	$1,441	$287,895
Month 38	$1,799	$359	$1,439	$287,536
Month 39	$1,799	$361	$1,438	$287,175
Month 40	$1,799	$363	$1,436	$286,812
Month 41	$1,799	$365	$1,434	$286,447
Month 42	$1,799	$366	$1,432	$286,081
Month 43	$1,799	$368	$1,430	$285,713
Month 44	$1,799	$370	$1,429	$285,343
Month 45	$1,799	$372	$1,427	$284,971
Month 46	$1,799	$374	$1,425	$284,597
Month 47	$1,799	$376	$1,423	$284,221
Month 48	$1,799	$378	$1,421	$283,844
Month 49	$1,799	$379	$1,419	$283,464
Month 50	$1,799	$381	$1,417	$283,083
Month 51	$1,799	$383	$1,415	$282,700
Month 52	$1,799	$385	$1,413	$282,314
Month 53	$1,799	$387	$1,412	$281,927
Month 54	$1,799	$389	$1,410	$281,538
Month 55	$1,799	$391	$1,408	$281,147
Month 56	$1,799	$393	$1,406	$280,754
Month 57	$1,799	$395	$1,404	$280,360
Month 58	$1,799	$397	$1,402	$279,963
Month 59	$1,799	$399	$1,400	$279,564
Month 60	$1,799	$401	$1,398	$279,163
Month 61	$1,799	$403	$1,396	$278,760
Month 62	$1,799	$405	$1,394	$278,355
Month 63	$1,799	$407	$1,392	$277,949
Month 64	$1,799	$409	$1,390	$277,540
Month 65	$1,799	$411	$1,388	$277,129
Month 66	$1,799	$413	$1,386	$276,716
Month 67	$1,799	$415	$1,384	$276,301
Month 68	$1,799	$417	$1,382	$275,883
Month 69	$1,799	$419	$1,379	$275,464
Month 70	$1,799	$421	$1,377	$275,043
Month 71	$1,799	$423	$1,375	$274,619
Month 72	$1,799	$426	$1,373	$274,194
Month 73	$1,799	$428	$1,371	$273,766
Month 74	$1,799	$430	$1,369	$273,336
Month 75	$1,799	$432	$1,367	$272,904
Month 76	$1,799	$434	$1,365	$272,470
Month 77	$1,799	$436	$1,362	$272,034
Month 78	$1,799	$438	$1,360	$271,595
Month 79	$1,799	$441	$1,358	$271,155
Month 80	$1,799	$443	$1,356	$270,712
Month 81	$1,799	$445	$1,354	$270,267
Month 82	$1,799	$447	$1,351	$269,820
Month 83	$1,799	$450	$1,349	$269,370
Month 84	$1,799	$452	$1,347	$268,918
Month 85	$1,799	$454	$1,345	$268,464
Month 86	$1,799	$456	$1,342	$268,008
Month 87	$1,799	$459	$1,340	$267,549
Month 88	$1,799	$461	$1,338	$267,088
Month 89	$1,799	$463	$1,335	$266,625
Month 90	$1,799	$466	$1,333	$266,160
Month 91	$1,799	$468	$1,331	$265,692
Month 92	$1,799	$470	$1,328	$265,221
Month 93	$1,799	$473	$1,326	$264,749
Month 94	$1,799	$475	$1,324	$264,274
Month 95	$1,799	$477	$1,321	$263,797
Month 96	$1,799	$480	$1,319	$263,317
Month 97	$1,799	$482	$1,317	$262,835
Month 98	$1,799	$484	$1,314	$262,351
Month 99	$1,799	$487	$1,312	$261,864
Month 100	$1,799	$489	$1,309	$261,374
Month 101	$1,799	$492	$1,307	$260,883
Month 102	$1,799	$494	$1,304	$260,388
Month 103	$1,799	$497	$1,302	$259,892
Month 104	$1,799	$499	$1,299	$259,392
Month 105	$1,799	$502	$1,297	$258,891
Month 106	$1,799	$504	$1,294	$258,386
Month 107	$1,799	$507	$1,292	$257,880
Month 108	$1,799	$509	$1,289	$257,371
Month 109	$1,799	$512	$1,287	$256,859
Month 110	$1,799	$514	$1,284	$256,344
Month 111	$1,799	$517	$1,282	$255,827
Month 112	$1,799	$520	$1,279	$255,308
Month 113	$1,799	$522	$1,277	$254,786
Month 114	$1,799	$525	$1,274	$254,261
Month 115	$1,799	$527	$1,271	$253,734
Month 116	$1,799	$530	$1,269	$253,204
Month 117	$1,799	$533	$1,266	$252,671
Month 118	$1,799	$535	$1,263	$252,136
Month 119	$1,799	$538	$1,261	$251,598
Month 120	$1,799	$541	$1,258	$251,057
Month 121	$1,799	$543	$1,255	$250,514
Month 122	$1,799	$546	$1,253	$249,968
Month 123	$1,799	$549	$1,250	$249,419
Month 124	$1,799	$552	$1,247	$248,867
Month 125	$1,799	$554	$1,244	$248,313
Month 126	$1,799	$557	$1,242	$247,756
Month 127	$1,799	$560	$1,239	$247,196
Month 128	$1,799	$563	$1,236	$246,633
Month 129	$1,799	$565	$1,233	$246,068
Month 130	$1,799	$568	$1,230	$245,500
Month 131	$1,799	$571	$1,227	$244,928
Month 132	$1,799	$574	$1,225	$244,354
Month 133	$1,799	$577	$1,222	$243,778
Month 134	$1,799	$580	$1,219	$243,198
Month 135	$1,799	$583	$1,216	$242,615
Month 136	$1,799	$586	$1,213	$242,030
Month 137	$1,799	$589	$1,210	$241,441
Month 138	$1,799	$591	$1,207	$240,850
Month 139	$1,799	$594	$1,204	$240,255
Month 140	$1,799	$597	$1,201	$239,658
Month 141	$1,799	$600	$1,198	$239,057
Month 142	$1,799	$603	$1,195	$238,454
Month 143	$1,799	$606	$1,192	$237,848
Month 144	$1,799	$609	$1,189	$237,238
Month 145	$1,799	$612	$1,186	$236,626
Month 146	$1,799	$616	$1,183	$236,010
Month 147	$1,799	$619	$1,180	$235,392
Month 148	$1,799	$622	$1,177	$234,770
Month 149	$1,799	$625	$1,174	$234,145
Month 150	$1,799	$628	$1,171	$233,517
Month 151	$1,799	$631	$1,168	$232,886
Month 152	$1,799	$634	$1,164	$232,252
Month 153	$1,799	$637	$1,161	$231,615
Month 154	$1,799	$641	$1,158	$230,974
Month 155	$1,799	$644	$1,155	$230,330
Month 156	$1,799	$647	$1,152	$229,683
Month 157	$1,799	$650	$1,148	$229,033
Month 158	$1,799	$653	$1,145	$228,380
Month 159	$1,799	$657	$1,142	$227,723
Month 160	$1,799	$660	$1,139	$227,063
Month 161	$1,799	$663	$1,135	$226,399
Month 162	$1,799	$667	$1,132	$225,733
Month 163	$1,799	$670	$1,129	$225,063
Month 164	$1,799	$673	$1,125	$224,389
Month 165	$1,799	$677	$1,122	$223,713
Month 166	$1,799	$680	$1,119	$223,033
Month 167	$1,799	$683	$1,115	$222,349
Month 168	$1,799	$687	$1,112	$221,662
Month 169	$1,799	$690	$1,108	$220,972
Month 170	$1,799	$694	$1,105	$220,278
Month 171	$1,799	$697	$1,101	$219,581
Month 172	$1,799	$701	$1,098	$218,880
Month 173	$1,799	$704	$1,094	$218,176
Month 174	$1,799	$708	$1,091	$217,468
Month 175	$1,799	$711	$1,087	$216,757
Month 176	$1,799	$715	$1,084	$216,042
Month 177	$1,799	$718	$1,080	$215,323
Month 178	$1,799	$722	$1,077	$214,601
Month 179	$1,799	$726	$1,073	$213,876
Month 180	$1,799	$729	$1,069	$213,147
Month 181	$1,799	$733	$1,066	$212,414
Month 182	$1,799	$737	$1,062	$211,677
Month 183	$1,799	$740	$1,058	$210,937
Month 184	$1,799	$744	$1,055	$210,193
Month 185	$1,799	$748	$1,051	$209,445
Month 186	$1,799	$751	$1,047	$208,694
Month 187	$1,799	$755	$1,043	$207,938
Month 188	$1,799	$759	$1,040	$207,180
Month 189	$1,799	$763	$1,036	$206,417
Month 190	$1,799	$767	$1,032	$205,650
Month 191	$1,799	$770	$1,028	$204,880
Month 192	$1,799	$774	$1,024	$204,106
Month 193	$1,799	$778	$1,021	$203,327
Month 194	$1,799	$782	$1,017	$202,545
Month 195	$1,799	$786	$1,013	$201,760
Month 196	$1,799	$790	$1,009	$200,970
Month 197	$1,799	$794	$1,005	$200,176
Month 198	$1,799	$798	$1,001	$199,378
Month 199	$1,799	$802	$997	$198,576
Month 200	$1,799	$806	$993	$197,771
Month 201	$1,799	$810	$989	$196,961
Month 202	$1,799	$814	$985	$196,147
Month 203	$1,799	$818	$981	$195,329
Month 204	$1,799	$822	$977	$194,507
Month 205	$1,799	$826	$973	$193,681
Month 206	$1,799	$830	$968	$192,851
Month 207	$1,799	$834	$964	$192,016
Month 208	$1,799	$839	$960	$191,178
Month 209	$1,799	$843	$956	$190,335
Month 210	$1,799	$847	$952	$189,488
Month 211	$1,799	$851	$947	$188,637
Month 212	$1,799	$855	$943	$187,781
Month 213	$1,799	$860	$939	$186,921
Month 214	$1,799	$864	$935	$186,057
Month 215	$1,799	$868	$930	$185,189
Month 216	$1,799	$873	$926	$184,316
Month 217	$1,799	$877	$922	$183,439
Month 218	$1,799	$881	$917	$182,558
Month 219	$1,799	$886	$913	$181,672
Month 220	$1,799	$890	$908	$180,782
Month 221	$1,799	$895	$904	$179,887
Month 222	$1,799	$899	$899	$178,988
Month 223	$1,799	$904	$895	$178,084
Month 224	$1,799	$908	$890	$177,176
Month 225	$1,799	$913	$886	$176,263
Month 226	$1,799	$917	$881	$175,346
Month 227	$1,799	$922	$877	$174,424
Month 228	$1,799	$927	$872	$173,497
Month 229	$1,799	$931	$867	$172,566
Month 230	$1,799	$936	$863	$171,630
Month 231	$1,799	$941	$858	$170,690
Month 232	$1,799	$945	$853	$169,745
Month 233	$1,799	$950	$849	$168,795
Month 234	$1,799	$955	$844	$167,840
Month 235	$1,799	$959	$839	$166,880
Month 236	$1,799	$964	$834	$165,916
Month 237	$1,799	$969	$830	$164,947
Month 238	$1,799	$974	$825	$163,973
Month 239	$1,799	$979	$820	$162,994
Month 240	$1,799	$984	$815	$162,011
Month 241	$1,799	$989	$810	$161,022
Month 242	$1,799	$994	$805	$160,029
Month 243	$1,799	$999	$800	$159,030
Month 244	$1,799	$1,004	$795	$158,027
Month 245	$1,799	$1,009	$790	$157,018
Month 246	$1,799	$1,014	$785	$156,005
Month 247	$1,799	$1,019	$780	$154,986
Month 248	$1,799	$1,024	$775	$153,962
Month 249	$1,799	$1,029	$770	$152,933
Month 250	$1,799	$1,034	$765	$151,899
Month 251	$1,799	$1,039	$759	$150,860
Month 252	$1,799	$1,044	$754	$149,816
Month 253	$1,799	$1,050	$749	$148,766
Month 254	$1,799	$1,055	$744	$147,711
Month 255	$1,799	$1,060	$739	$146,651
Month 256	$1,799	$1,065	$733	$145,586
Month 257	$1,799	$1,071	$728	$144,515
Month 258	$1,799	$1,076	$723	$143,439
Month 259	$1,799	$1,081	$717	$142,358
Month 260	$1,799	$1,087	$712	$141,271
Month 261	$1,799	$1,092	$706	$140,179
Month 262	$1,799	$1,098	$701	$139,081
Month 263	$1,799	$1,103	$695	$137,978
Month 264	$1,799	$1,109	$690	$136,869
Month 265	$1,799	$1,114	$684	$135,754
Month 266	$1,799	$1,120	$679	$134,635
Month 267	$1,799	$1,125	$673	$133,509
Month 268	$1,799	$1,131	$668	$132,378
Month 269	$1,799	$1,137	$662	$131,241
Month 270	$1,799	$1,142	$656	$130,099
Month 271	$1,799	$1,148	$650	$128,951
Month 272	$1,799	$1,154	$645	$127,797
Month 273	$1,799	$1,160	$639	$126,637
Month 274	$1,799	$1,165	$633	$125,472
Month 275	$1,799	$1,171	$627	$124,300
Month 276	$1,799	$1,177	$622	$123,123
Month 277	$1,799	$1,183	$616	$121,940
Month 278	$1,799	$1,189	$610	$120,751
Month 279	$1,799	$1,195	$604	$119,556
Month 280	$1,799	$1,201	$598	$118,355
Month 281	$1,799	$1,207	$592	$117,149
Month 282	$1,799	$1,213	$586	$115,936
Month 283	$1,799	$1,219	$580	$114,717
Month 284	$1,799	$1,225	$574	$113,492
Month 285	$1,799	$1,231	$567	$112,260
Month 286	$1,799	$1,237	$561	$111,023
Month 287	$1,799	$1,244	$555	$109,780
Month 288	$1,799	$1,250	$549	$108,530
Month 289	$1,799	$1,256	$543	$107,274
Month 290	$1,799	$1,262	$536	$106,011
Month 291	$1,799	$1,269	$530	$104,743
Month 292	$1,799	$1,275	$524	$103,468
Month 293	$1,799	$1,281	$517	$102,187
Month 294	$1,799	$1,288	$511	$100,899
Month 295	$1,799	$1,294	$504	$99,605
Month 296	$1,799	$1,301	$498	$98,304
Month 297	$1,799	$1,307	$492	$96,997
Month 298	$1,799	$1,314	$485	$95,683
Month 299	$1,799	$1,320	$478	$94,363
Month 300	$1,799	$1,327	$472	$93,036
Month 301	$1,799	$1,333	$465	$91,703
Month 302	$1,799	$1,340	$459	$90,363
Month 303	$1,799	$1,347	$452	$89,016
Month 304	$1,799	$1,354	$445	$87,662
Month 305	$1,799	$1,360	$438	$86,302
Month 306	$1,799	$1,367	$432	$84,935
Month 307	$1,799	$1,374	$425	$83,561
Month 308	$1,799	$1,381	$418	$82,180
Month 309	$1,799	$1,388	$411	$80,792
Month 310	$1,799	$1,395	$404	$79,397
Month 311	$1,799	$1,402	$397	$77,996
Month 312	$1,799	$1,409	$390	$76,587
Month 313	$1,799	$1,416	$383	$75,171
Month 314	$1,799	$1,423	$376	$73,749
Month 315	$1,799	$1,430	$369	$72,319
Month 316	$1,799	$1,437	$362	$70,882
Month 317	$1,799	$1,444	$354	$69,437
Month 318	$1,799	$1,451	$347	$67,986
Month 319	$1,799	$1,459	$340	$66,527
Month 320	$1,799	$1,466	$333	$65,061
Month 321	$1,799	$1,473	$325	$63,588
Month 322	$1,799	$1,481	$318	$62,107
Month 323	$1,799	$1,488	$311	$60,619
Month 324	$1,799	$1,496	$303	$59,124
Month 325	$1,799	$1,503	$296	$57,620
Month 326	$1,799	$1,511	$288	$56,110
Month 327	$1,799	$1,518	$281	$54,592
Month 328	$1,799	$1,526	$273	$53,066
Month 329	$1,799	$1,533	$265	$51,533
Month 330	$1,799	$1,541	$258	$49,992
Month 331	$1,799	$1,549	$250	$48,443
Month 332	$1,799	$1,556	$242	$46,887
Month 333	$1,799	$1,564	$234	$45,322
Month 334	$1,799	$1,572	$227	$43,750
Month 335	$1,799	$1,580	$219	$42,171
Month 336	$1,799	$1,588	$211	$40,583
Month 337	$1,799	$1,596	$203	$38,987
Month 338	$1,799	$1,604	$195	$37,383
Month 339	$1,799	$1,612	$187	$35,772
Month 340	$1,799	$1,620	$179	$34,152
Month 341	$1,799	$1,628	$171	$32,524
Month 342	$1,799	$1,636	$163	$30,888
Month 343	$1,799	$1,644	$154	$29,244
Month 344	$1,799	$1,652	$146	$27,591
Month 345	$1,799	$1,661	$138	$25,930
Month 346	$1,799	$1,669	$130	$24,261
Month 347	$1,799	$1,677	$121	$22,584
Month 348	$1,799	$1,686	$113	$20,898
Month 349	$1,799	$1,694	$104	$19,204
Month 350	$1,799	$1,703	$96	$17,502
Month 351	$1,799	$1,711	$88	$15,790
Month 352	$1,799	$1,720	$79	$14,071
Month 353	$1,799	$1,728	$70	$12,342
Month 354	$1,799	$1,737	$62	$10,606
Month 355	$1,799	$1,746	$53	$8,860
Month 356	$1,799	$1,754	$44	$7,106
Month 357	$1,799	$1,763	$36	$5,342
Month 358	$1,799	$1,772	$27	$3,571
Month 359	$1,799	$1,781	$18	$1,790
Month 360	$1,799	$1,790	$9	$0

Guide

How to understand and use this calculator

What Is Refinancing? Quick Answer

Refinancing means replacing your existing loan with a new one, usually to get a lower interest rate, a lower monthly payment or a different loan term.

How to calculate refinance savings:

Monthly savings = current payment − new payment
Break-even point = closing costs ÷ monthly savings

Simple example: your current payment is $1,500 a month and the new payment is $1,300, so you save $200 a month. Closing costs are $4,000, so you break even after $4,000 ÷ $200 = 20 months.

Current Payment	New Payment	Monthly Savings	Closing Costs	Break-Even
$1,500	$1,300	$200	$4,000	20 months
$2,000	$1,700	$300	$5,000	17 months
$1,200	$1,000	$200	$3,000	15 months
$1,800	$1,500	$300	$6,000	20 months

Key insight: refinancing is worth it if you plan to keep the home, or the car, past the break-even point.

How to Use the Refinance Calculator

To use the refinance calculator:

Enter your original loan amount, current interest rate and original term.
Enter the number of months you have already paid. The calculator works out your current payment and remaining balance from these.
Enter the new interest rate and new term.
Enter the closing costs, and tick the box if you will roll them into the new loan instead of paying them upfront.
Read your current and new payment, monthly savings, break-even point and total net savings. The results update as you type.

Tip: if you only know your current balance and how long is left, enter the balance as the original amount, the time left as the original term, and 0 months paid.

Example 1, a mortgage refinance: $300,000 left to pay at 7.0% over 30 years, refinanced to 6.0% for 30 years with $6,000 of closing costs paid upfront.

Input	Value
Original loan amount	$300,000
Current rate	7.0%
Original term	30 years
Months already paid	0
New rate	6.0%
New term	30 years
Closing costs	$6,000
Output	Result
Current monthly payment	$1,996
New monthly payment	$1,799
Monthly savings	$197
Break-even point	30.4 months
5-year savings	$5,835
Interest saved over the loan	$71,012
Total net savings, after closing costs	$65,012

Example 2, an auto refinance: $25,000 at 8.0% with 5 years left, refinanced to 5.0% over 4 years with a $200 fee.

Input	Value
Original loan amount	$25,000
Current rate	8.0%
Original term	5 years
Months already paid	0
New rate	5.0%
New term	4 years
Closing costs	$200
Output	Result
Current monthly payment	$507
New monthly payment	$576
Monthly savings	−$69 (the payment goes up)
Break-even point	None
Interest saved	$2,779 ($5,415 − $2,635)
Total net savings, after the fee	$2,579

Note: here the monthly payment is higher, but the shorter term and lower rate cut total interest. Always look at both the monthly payment and the total cost.

What Is Refinancing?

Refinancing is the process of replacing your existing loan with a new one. The new loan pays off the old loan, and from then on you make payments on the new loan.

Why people refinance:

Reason	Benefit
Lower interest rate	Reduces monthly payments and total interest
Lower monthly payment	Improves cash flow
Shorter loan term	Pays the loan off faster, with less total interest
Longer loan term	Reduces the monthly payment
Remove PMI	Saves the premium once you have 20% or more equity
Cash-out	Gives you access to home equity for other needs
Change rate type	Moves you from an adjustable rate to a fixed rate

What you need to refinance:

Recent pay stubs
W-2s or tax returns
Bank statements
Current loan details: balance, rate and term
Property details, for a mortgage

How Does a Refinance Calculator Work?

A refinance calculator compares your current loan with a possible new loan.

What it calculates:

Your remaining balance
The new monthly payment
Monthly savings
The break-even point
Total interest and total net savings

The process:

It works out your current payment and the balance still owed from the original loan, rate, term and months paid.
It works out the new payment on that balance at the new rate and term, adding the closing costs to the balance if you roll them in.
It subtracts the new payment from the current one to get monthly savings.
It divides the closing costs by the monthly savings to get the break-even point.
It compares all the payments left on the current loan with all the payments on the new loan plus upfront costs to get total net savings.

What Is the Break-Even Point?

The break-even point is the number of months it takes for your monthly savings to cover the cost of refinancing.

Break-even point (months) = closing costs ÷ monthly savings

Example: closing costs of $6,000 and monthly savings of $197.26.

Break-even = $6,000 ÷ $197.26 = 30.4 months

What it means:

If you keep the loan for more than about 30 months, you save money.
If you sell or refinance again before then, you lose money on the refinance.

How to Calculate Refinance Savings, Step by Step

These steps follow Example 1: $300,000 at 7.0%, refinanced to 6.0% for 30 years with $6,000 of closing costs.

Step 1: Work out your current monthly payment, with the mortgage formula or from your statement. $300,000 at 7.0% for 30 years = $1,995.91.
Step 2: Work out your new monthly payment with the same formula at the new rate and term. $300,000 at 6.0% for 30 years = $1,798.65.
Step 3: Monthly savings = current payment − new payment. $1,995.91 − $1,798.65 = $197.26.
Step 4: Break-even = closing costs ÷ monthly savings. $6,000 ÷ $197.26 = 30.4 months.
Step 5: Savings over a period = monthly savings × months − closing costs. Over 5 years: $197.26 × 60 − $6,000 = $5,835.

Answer: you save about $197 a month and break even in about 30 months. Over the full 30 years, the saving is $197.26 × 360 − $6,000 = $65,012.

How to Calculate the Break-Even Point: Worked Examples

Break-even point (months) = closing costs ÷ monthly savings

Example	Closing Costs	Monthly Savings	Break-Even
Mortgage 1	$4,000	$200	$4,000 ÷ $200 = 20 months
Mortgage 2	$7,500	$250	$7,500 ÷ $250 = 30 months
Auto refinance	$200	$50	$200 ÷ $50 = 4 months

Important: if you plan to sell the home or trade in the car before the break-even point, refinancing may not be worth it.

When Is Refinancing Worth It?

Refinancing is usually worth it if:

Condition	Why It Matters
You will keep the loan past break-even	You get back the closing costs
You get a lower rate	Your payments and interest fall
You can remove PMI	You stop paying the premium
You need cash	A cash-out refinance provides funds
You want a shorter term	You pay the loan off faster
Your credit has improved	You qualify for a better rate

When it is usually not worth it:

Condition	Why It Is Not Worth It
You will sell soon	You will not get back the closing costs
The rate cut is small	The savings do not cover the costs
Closing costs are high	The break-even point is far away
You are near the end of your term	Most of each payment is already principal

Watch the term, too. Refinancing a loan with 25 years left into a new 30-year loan lowers the payment partly by adding five years of payments, which can raise the total interest you pay.

Refinance Home Loan Rates: What to Expect

Refinance home loan rates depend on several factors:

Factor	Effect on Your Rate
Credit score	Higher score = lower rate
Loan-to-value (LTV)	Lower LTV = lower rate
Loan term	Shorter term = lower rate
Loan type	Conventional, FHA, VA and USDA loans are priced differently
Market conditions	Rates move with the economy and bond markets

Recent national averages from Freddie Mac's Primary Mortgage Market Survey:

Loan Type	Average Rate, Week of September 24, 2026	A Year Earlier
30-year fixed	7.03%	6.30%
15-year fixed	6.42%	5.49%

These averages come from home purchase applications. A refinance quote can be a little different, and adjustable-rate, FHA and VA loans are priced separately.

Note: rates change daily. Get current quotes from several lenders before you refinance.

Auto Loan Refinance: How It Works

An auto loan refinance works much like a mortgage refinance, but for your car.

When to refinance your auto loan:

Your credit score has improved
Interest rates have dropped
You want a lower monthly payment
You want to pay the loan off faster

What you need:

Current loan information
Vehicle information
Proof of income
Proof of insurance

Average car loan rates by credit score, from Experian's State of the Automotive Finance Market for the second quarter of 2026:

Credit Score (VantageScore 4.0)	New Car Loan	Used Car Loan
781 to 850 (super prime)	4.41%	6.29%
661 to 780 (prime)	6.15%	8.81%
601 to 660 (near prime)	9.71%	13.93%
501 to 600 (subprime)	13.52%	19.10%
300 to 500 (deep subprime)	16.11%	21.62%

These are averages on car loans. Refinance offers follow the same pattern: a better credit score gets a lower rate.

Car Loan Refinance Rates: What to Expect

Car loan refinance rates vary by lender as well as by credit score.

Lender Type	What to Expect
Banks	Competitive rates, especially for existing customers with good credit
Credit unions	Often among the lowest rates, but you must become a member
Online lenders	Quick comparisons and approvals, with a wide range of rates
Dealerships	Convenient, but usually not the cheapest option for a refinance

How to get the best auto refinance rate:

Check your credit score
Shop around at several lenders
Get pre-approved
Compare rates, terms and fees
Include a credit union

Refinancing an Auto Loan, Step by Step

Step 1: Check your credit score.
Step 2: Gather your loan and vehicle information.
Step 3: Shop around for rates.
Step 4: Get pre-approved.
Step 5: Choose the best offer, checking the total cost as well as the payment.
Step 6: Complete the refinance. The new lender pays off the old loan.
Step 7: Make your payments to the new lender.

What you will need:

Item	Why You Need It
Driver's license	ID verification
Proof of income	Shows you can repay
Vehicle registration	Vehicle details
Current loan statement	The payoff amount
Proof of insurance	Confirms coverage

Mortgage Refinance vs. Auto Refinance

Feature	Mortgage Refinance	Auto Refinance
Loan amount	Usually $100,000 or more	Usually $5,000 to $50,000
Closing costs	About 2% to 6% of the loan	Often $0 to $500
Break-even	Often 18 to 36 months	Often 2 to 6 months
Term	15 to 30 years	2 to 7 years
Tax deduction	Interest may be deductible if you itemize	Only for some new US-assembled cars bought from 2025, for tax years 2025 to 2028
Mortgage insurance	PMI or MIP may apply	None

Practice Problems

Problem 1: a homeowner refinances with $5,000 of closing costs and $250 of monthly savings. What is the break-even point?

Solution: break-even = $5,000 ÷ $250 = 20 months.

Problem 2: a homeowner saves $150 a month and breaks even in 24 months. What were the closing costs?

Solution: closing costs = $150 × 24 = $3,600.

Problem 3: a car owner refinances with $200 of closing costs and $40 of monthly savings. What is the break-even point?

Solution: break-even = $200 ÷ $40 = 5 months.

Problem 4: a homeowner refinances a $400,000 loan from 7.5% to 6.0%, both over 30 years. What is the monthly saving?

Solution: current payment at 7.5% = $2,796.86. New payment at 6.0% = $2,398.20. Monthly savings = $398.66, about $399.

Problem 5: a homeowner paid $7,000 of closing costs and saves $200 a month. How many months to break even?

Solution: break-even = $7,000 ÷ $200 = 35 months.

Problem	Answer
1	20 months
2	$3,600
3	5 months
4	$399
5	35 months

Common Refinance Mistakes

Mistake	What Goes Wrong	Fix
Not calculating the break-even point	You refinance without knowing when you start saving	Work out the break-even point first
Ignoring closing costs	You look only at the monthly saving	Count every closing cost and fee
Refinancing too often	You pay closing costs each time rates dip	Make sure the savings exceed the costs
Stretching the term too far	A lower payment but years of extra interest	Compare total interest, not just the payment
Not shopping around	You take the first offer	Compare at least three lenders
Forgetting about PMI	You keep paying PMI you could remove	Check whether you have 20% or more equity
Not checking your credit score	You apply without knowing your rate tier	Check your credit before you apply
Refinancing again before break-even	You never get back the first set of costs	Stay past break-even before refinancing again

What This Calculator Can and Cannot Do

This calculator can help with:

Calculating refinance savings
Finding the break-even point
Comparing your current loan with a new one
Estimating total interest and net savings
Mortgage and auto loan refinances
Comparing paying closing costs upfront with rolling them into the loan

This calculator cannot:

Guarantee refinance approval
Replace a lender's official Loan Estimate
Model a cash-out refinance, or taxes and insurance held in escrow
Account for every fee
Provide tax advice
Predict future interest rates

Related Calculators

Calculator	When to Use It
Mortgage calculator	For the full mortgage payment with tax and insurance
Auto loan calculator	For car loan payments
Home affordability calculator	For your home buying budget
Refinance break-even calculator	For a quick break-even check from a payment and costs
Loan-to-value calculator	For checking whether you have 20% equity to drop PMI
Break-even calculator	For general break-even analysis
Percentage calculator	For percentage calculations

Summary: The Key Refinance Formulas

Monthly savings: current payment − new payment
Break-even point: closing costs ÷ monthly savings
Total savings: (monthly savings × months) − closing costs

Quick reference:

Current Payment	New Payment	Monthly Savings	Closing Costs	Break-Even
$1,500	$1,300	$200	$4,000	20 months
$2,000	$1,700	$300	$5,000	17 months
$1,200	$1,000	$200	$3,000	15 months
$1,800	$1,500	$300	$6,000	20 months

Enter your own loans in the calculator above to see your result. It is free and needs no sign-up.

Related concepts

Break-Even Point

The number of months it takes for monthly savings to cover the cost of refinancing.

Closing Costs

The lender, appraisal, title and other fees paid to take out the new loan.

Loan-to-Value (LTV)

Your loan balance divided by the property's value, which affects your rate and whether PMI applies.

Amortization

How each payment is split between interest and principal over the life of a loan.

Frequently Asked Questions

What is a refinance calculator?+

A refinance calculator shows whether refinancing a loan is worth it by working out the new payment, your monthly savings, the break-even point and the total savings after closing costs.

How does a refinance calculator work?+

It compares your current loan with a new loan: the difference in monthly payments, the time it takes to get back the closing costs, and the total cost of each loan.

What is the break-even point?+

How do I calculate refinance savings?+

When is refinancing worth it?+

Refinancing is worth it if you will keep the home, or the car, past the break-even point, and the new loan does not cost more in total interest than the one you have.

What are typical refinance closing costs?+

Mortgage refinance closing costs are commonly about 2% to 6% of the loan amount. Auto refinances often cost little or nothing beyond a small title or lender fee.

What are refinance home loan rates right now?+

What are auto refinance rates?+

They vary by lender and credit score. Experian's second-quarter 2026 averages ran from 4.41% on new-car loans for the best credit scores to over 21% on used-car loans for the lowest.

How do I refinance my auto loan?+

Check your credit, gather your loan and vehicle documents, compare rates from several lenders, get pre-approved, choose the best offer, and let the new lender pay off the old loan.

Can I refinance an auto loan with bad credit?+

Yes, but the rate will be higher. Credit unions and online lenders are worth checking, and improving your score first can lower the rate you are offered.

How often can I refinance?+

Formula

Refinance Savings Formula

Net Savings = (Current Payment × Remaining Months) - (New Payment × Refinance Term Months) - Upfront Fees

Step by step

How the calculation works

1Find your current mortgage payment, original interest rate, and original term.
2Specify the number of months already paid on the existing mortgage.
3Calculate the remaining principal balance using the amortizing remaining balance formula.
4Enter the interest rate and term for the proposed new mortgage.
5Determine closing costs and choose if you want to roll them into the new mortgage.
6Calculate the new payment and subtract it from the old payment to find monthly cash flow change.
7Compare the total cost of the new loan plus fees to the remaining payments of the old loan to compute net savings.
8Divide the closing costs by the monthly savings to find your break-even period in months.

Example

Example Refinance Scenario

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Refinance Calculator

Inputs

Current Loan Details

New Refinance Loan Details

Closing Cost Break-Even Recovery Calendar

Results

Key output metrics

Monthly payment comparison

Total cost of borrowing

Principal, interest, and balance timeline

How to understand and use this calculator

What Is Refinancing? Quick Answer

How to Use the Refinance Calculator

What Is Refinancing?

How Does a Refinance Calculator Work?

What Is the Break-Even Point?

How to Calculate Refinance Savings, Step by Step

How to Calculate the Break-Even Point: Worked Examples

When Is Refinancing Worth It?

Refinance Home Loan Rates: What to Expect

Auto Loan Refinance: How It Works

Car Loan Refinance Rates: What to Expect

Refinancing an Auto Loan, Step by Step

Mortgage Refinance vs. Auto Refinance

Practice Problems

Common Refinance Mistakes

What This Calculator Can and Cannot Do

Related Calculators

Summary: The Key Refinance Formulas

Related concepts

Frequently Asked Questions

Refinance Savings Formula

How the calculation works

Example Refinance Scenario

Learn more about this calculation

Mortgage Amortization Schedule: Formula and Guide

Home Affordability: Budget, Formula, and Calculator

Key facts

Methodology

Refinance Calculator

Inputs

Current Loan Details

New Refinance Loan Details

Closing Cost Break-Even Recovery Calendar

Results

Key output metrics

Monthly payment comparison

Total cost of borrowing

Principal, interest, and balance timeline

How to understand and use this calculator

What Is Refinancing? Quick Answer

How to Use the Refinance Calculator

What Is Refinancing?

How Does a Refinance Calculator Work?

What Is the Break-Even Point?

How to Calculate Refinance Savings, Step by Step

How to Calculate the Break-Even Point: Worked Examples

When Is Refinancing Worth It?

Refinance Home Loan Rates: What to Expect

Auto Loan Refinance: How It Works

Car Loan Refinance Rates: What to Expect

Refinancing an Auto Loan, Step by Step

Mortgage Refinance vs. Auto Refinance

Practice Problems

Common Refinance Mistakes

What This Calculator Can and Cannot Do

Related Calculators

Summary: The Key Refinance Formulas

Related concepts

Frequently Asked Questions

Refinance Savings Formula

How the calculation works

Example Refinance Scenario

Learn more about this calculation

Mortgage Amortization Schedule: Formula and Guide

Home Affordability: Budget, Formula, and Calculator

Key facts

Methodology