Refinance Calculator
Free refinance calculator: compare your current loan with a new one, the monthly savings, when the closing costs pay off and the real total difference.
No currency is shown on purpose: the figures come out in whatever unit you type in.
| Current loan | New loan | |
|---|---|---|
| Monthly payment | ||
| Payments left | ||
| Total interest | ||
| Still to pay |
What it does
It compares what you still have to pay on your current loan with what a new loan would cost: the new monthly payment, how much you save each month, how many months it takes for those savings to pay back the closing costs, and the difference over the whole life of the loan, which is the number that tells whether the refinance is really worth it.
How to use it
- Type what you still owe, the current rate and how long is left on the loan. Your statement shows the balance and the payments left.
- Type the rate and term of the new loan and its closing costs, and choose whether those costs are paid up front or added to the loan.
- Read the monthly savings, the break-even and, above all, the difference in total. Try keeping the same term as the time left to compare like with like.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
When is refinancing worth it?
When the difference over the whole loan is positive and you will keep the loan past the break-even point. A lower payment alone proves nothing: stretching the term lowers the payment even at the same rate, and usually raises the total.
What is the break-even point?
It is the closing costs divided by the monthly savings: the number of months it takes for the lower payment to pay back what the refinance cost. If you sell the house or pay off the loan before that, the refinance lost money.
Should I add the closing costs to the new loan?
It saves cash today, but you then pay interest on those costs for the whole new term. Tick and untick the option to see the difference in total for your numbers.
Does this work for car loans and personal loans too?
Yes. The arithmetic is the same for any loan with a fixed monthly payment: a mortgage, a car loan or a personal loan.
Wikipedia — Refinancing
Wikipedia — Closing costs
Wikipedia — Break-even point