Inputs
Adjust the assumptions to match your scenario. Results update instantly.
Results
Primary outputs and comparison insights are built from the current inputs.
Current payment
$1,330.60
Monthly payment on the existing loan.
New payment
$1,135.58
Monthly payment after refinancing.
Monthly savings
$195.03
Reduction in monthly payment.
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How this calculator works
The Refinance Calculator compares your current monthly payment with a new rate to show potential savings from refinancing. Enter current balance, current rate, and new rate to estimate current payment, new payment, and monthly savings. The calculator updates instantly and adds a comparison table plus chart so you can test the sensitivity of the result before you use it in a decision.
Quick guide
Jump straight to the section you need, then return to the calculator.
Inputs
- Remaining balance on current loan.
- Interest rate on your existing loan.
- Interest rate offered for refinancing.
- Term of the new refinanced loan.
Outputs
- Monthly payment on the existing loan.
- Monthly payment after refinancing.
- Reduction in monthly payment.
Assumptions
- Same remaining balance refinanced.
- Closing costs not included in the base comparison.
Tips
- Refinancing makes sense if you recoup closing costs within 2-3 years.
- Check if your current loan has prepayment penalties.
Formula guide
Use these formulas to audit the output or explain it to someone else.
1 formulas
Usage examples
Review a ready-made scenario, copy it, then tweak inputs to match your case.
Example
Rate drop refinance
Inputs
- Example input Current balance: $250,000.00
- Example input Current rate: 7.5%
- Example input New rate: 5.75%
- Example input New term (years): 30
Outputs
- Example result Current payment: $1,748.04
- Example result New payment: $1,458.93
- Example result Monthly savings: $289.10
A 1.75% rate reduction on $250k saves over $300/month before closing costs.
Savings by new rate
| New rate | New payment | Monthly savings |
|---|---|---|
| 4.5% | $1,013.37 | $317.23 |
| 5% | $1,073.64 | $256.96 |
| 5.5% | $1,135.58 | $195.03 |
| 6% | $1,199.10 | $131.50 |
| 6.5% | $1,264.14 | $66.47 |
Factor in closing costs to determine the true break-even point of refinancing.
Monthly savings comparison
Focus point
4.5%
$317.23
Position
#1 of 5
Original order
Share of total
32.8%
Total: $967.20
Factor in closing costs to determine the true break-even point of refinancing.
References
- Mortgage refinancing break-even analysis
- Consumer Financial Protection Bureau guidelines
FAQ
Common questions
What does the Refinance Calculator do?
The Refinance Calculator compares your current monthly payment with a new rate to show potential savings from refinancing. Enter current balance, current rate, and new rate to estimate current payment, new payment, and monthly savings. The calculator updates instantly and adds a comparison table plus chart so you can test the sensitivity of the result before you use it in a decision. It is part of our financial toolkit.
What inputs do I need?
Typical inputs include Remaining balance on current loan., Interest rate on your existing loan., Interest rate offered for refinancing..
How are the results calculated?
We follow the formulas and assumptions outlined in the "How this calculator works" section. You will see outputs like Monthly payment on the existing loan., Monthly payment after refinancing., Reduction in monthly payment..
Can I share or download the results?
Use the Copy link or Print buttons to share your results. If a table or chart appears, you can download the data as CSV.
Is my data stored?
No. Calculations run in your browser and we do not store your inputs.
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