Refinance Calculator

What is Refinance Calculator?

Estimate refinance break-even, monthly savings, planned-hold savings, and total interest difference after costs.

• Estimate refinance break-even.
• Compare monthly savings with upfront costs.
• Avoid being misled by lower payment from a longer term.

Scope and country basis

This page evaluates whether refinancing may pay off after closing costs, planned holding period, and monthly savings.

Refinance rules, fees, points, taxes, and prepayment penalties vary by market and loan product. Verify local lender terms.

What each input means

Loan amount

Money field, formatted in the selected currency.

Current APR

Percentage field: enter 8 for 8%.

Annual interest rate

Percentage field: enter 8 for 8%.

Loan term

Number field: enter the value that matches your scenario.

Closing costs

Money field, formatted in the selected currency.

Planned holding period

Number field: enter the value that matches your scenario.

Formula and interpretation

Net planned-hold savings = monthly savings x planned holding months - closing costs. Break-even months = closing costs / monthly savings.

A lower payment is not enough. Check fee payback, term reset, total interest, and whether you will keep the loan long enough.

Key concepts

Break-even

Time needed for monthly savings to recover upfront cost.

Term reset

Restarting repayment over a longer period.

Planned hold

How long you expect to keep the home or loan.

How to read the result

• If break-even is longer than planned hold, refinancing may not pay off.
• If total interest rises, decide whether cash-flow relief is worth it.
• Include all lender, appraisal, title, and penalty fees.

How to use it

1. Enter home price, down payment, rate, term, and housing-cost assumptions.
2. Review payment, total interest, affordability, or rent-vs-buy output.
3. Adjust down payment, term, rate, and holding period to compare household cash flow.
4. Before buying, verify local rules, taxes, insurance, and lender underwriting.

Common mistakes

• Ignoring closing costs.
• Judging only by rate.
• Letting a longer term hide higher lifetime interest.

Suggested workflow

1. Confirm current balance and rate.
2. Run refinance break-even.
3. Compare extra payments or payoff alternatives.

Method and review boundary

This calculator runs a local estimate from the inputs and formula shown on this page. It does not retrieve live rules, rates, underwriting decisions, or quotes from banks, tax authorities, insurers, or other providers. Last reviewed: July 24, 2026.

For tax, lending, insurance, retirement, investment, or contract decisions, verify official guidance, the relevant agreement, and a formal quote for your location. Use this result to compare scenarios and prepare questions, not as financial, tax, investment, or legal advice.

Method notes and official sources

The comparison applies the current and proposed fixed rates to the same entered balance and term, treats closing costs as upfront, and calculates planned-hold savings as monthly payment savings times holding months minus closing costs. It does not reconstruct the existing amortization schedule or model points, escrow, taxes, insurance, penalties, changing rates, qualification, or a different new term.

The page calculates locally from user-entered values. It does not connect to Shopify, Google, ad platforms, lenders, analytics systems, fuel-price feeds, or other providers, and the result is not an official quote, promise, forecast, approval, or live platform data. Currency selection changes formatting only and does not perform FX conversion.

• CFPB: Should I refinance? - Consumer Financial Protection Bureau
• CFPB: Get to know loan costs - Consumer Financial Protection Bureau
• CFPB: Compare and negotiate loan offers - Consumer Financial Protection Bureau

Sources checked July 27, 2026. These are government, regulatory, standards-body, or first-party product references. Laws, product rules, metric definitions, and official pages can change; verify the applicable authority, platform account, and contract documents before a formal decision.

FAQ