Loan Comparison
Current Loan
New Loan
Monthly Savings
$0
Current Payment
$0
New Payment
$0
Break-Even Point
0 months
Lifetime Savings
$0
Current Total Interest
$0
New Total Interest
$0
Compare your current loan with a new refinanced loan to see if it's worth switching.
Enter your current loan's remaining balance, your current interest rate, and years left on your loan. Then enter the proposed new rate, the new loan term, and estimated closing costs. The calculator shows your monthly savings, break-even point (in months), and total lifetime savings or cost — giving you everything you need to make a data-driven decision.
The single most important number in any refinance decision is the break-even point — the number of months it takes for your monthly savings to "pay back" your closing costs. The formula is:
Closing Costs ÷ Monthly Savings = Break-Even Months
Example: if refinancing costs $8,000 in closing fees and saves you $320/month, your break-even is 25 months (just over 2 years). If you plan to stay in the home for 10+ years, this refinance is a clear win. If you plan to move in 18 months, you will lose money.
As a general rule, refinancing makes sense when you can reduce your interest rate by at least 0.75% to 1.0% and you expect to remain in the home past your break-even point. Beyond rate reduction, other reasons to refinance include:
One of the most overlooked costs of refinancing is the amortization restart. Mortgages front-load interest — in the early years, most of your payment goes to interest, not principal. If you are 8 years into a 30-year loan and refinance into a new 30-year mortgage, you will spend the next 8 years mostly paying interest again instead of paying down principal. Your monthly payment drops, but you may pay far more in total interest over your lifetime in the home.
The solution: ask your lender for a custom term. Instead of a new 30-year, request a 22-year term (to match your remaining payoff timeline). Most lenders accommodate custom terms, though a 15, 20, or 25-year is more standard. This calculator lets you test any new term side-by-side with your current loan to see the complete picture.
See how much you would save across a spectrum of interest rate drops, calculated dynamically using your current loan balance ($300,000) and current interest rate (7.5%):
| Rate Drop | New Rate | Monthly Savings | Annual Savings | 5-Year Savings |
|---|
How long will it take to recoup your closing costs of $5,000? Enter your planned stay period below to see if refinancing makes financial sense: