Refinance Calculator
Check whether a refinance pays off: the new payment, the break-even point on closing costs, and the total cost of each path.
| New monthly payment | $1,498.88 |
|---|---|
| Current monthly payment | $1,709.04 |
| Monthly change | saves $210.16 |
| Break-even | 2 years of savings to cover $5,000.00 in costs |
| Total still to pay, current loan | $563,982.84 |
| Total to pay, new loan (with costs) | $544,595.47 |
| Lifetime savings | $19,387.37 |
How to use it
- Enter the payoff balance and rate from your latest statement, and how many monthly payments are left.
- Enter the new rate and term from a lender's Loan Estimate.
- Enter the closing costs and pick whether you pay them up front or roll them into the loan.
- Compare the break-even time with how long you expect to keep the loan.
Formula
Payment M = P × i ÷ (1 − (1 + i)^−n), i = rate ÷ 12Break-even months = closing costs ÷ monthly savings- Lifetime savings = (current payment × months left) − (new payment × new months + costs paid in cash)
Example
A $250,000 balance at 7% with 330 payments left costs $1,709.04 a month. Refinancing to 6% for 30 years drops that to $1,498.88, saving $210.16 a month. $5,000 in closing costs paid in cash takes 24 months to earn back, and over the full term you pay $19,387.37 less ($563,982.84 vs $544,595.47).
Questions
Why can a lower payment still cost more in total?
Restarting a 30-year clock adds payments. If you had 20 years left and take a new 30-year loan, you may pay more interest overall even at a lower rate. Try a 20-year new term to compare.
Should I roll closing costs into the loan?
It saves cash today but you pay interest on the costs for the whole term. Switch the last box to see the difference.
Does this include taxes, insurance or PMI?
No, only the loan itself. Escrow costs usually stay the same after a refinance.
Is this a quote?
No. It's a planning estimate. The lender's Loan Estimate is the official figure.
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Last reviewed 2026-10-11. Found a mistake? Tell us.